The 8 Things Poor People DO That The RICH DON’T

You know, there's a lot of talk about becoming wealthy, but most of you don't understand there are eight major pitfalls you got to overcome in order to do that. So stay tuned.

Now, I'm uniquely qualified to talk about all the pitfalls that could keep you broke and in poverty. The reason I did that and even know that is because that was my life. I grew up in an environment where we always had more month than we did money. We always had more problems than we did money, we always had more responsibilities and payables or bills we had to pay. Then we did money and all else fails. I couldn't do the coaching I wanted to do. I couldn't do the martial arts things that I wanted to do. I didn't have that essence of stability throughout the course of my life. Now, I want a caveat here. I don't blame my parents for that. I don't blame their poor financial decision making on them specifically, because what I've learned is poverty and wealth are both learned behaviors. One can learn to be poor and to think in poverty. One can learn to be wealthy and think in levels of abundance. Both of them are learned behaviors. However, if you are going to conquer it, if you are going to conquer poverty, if you are going to conquer the feeling of being poor or not having enough, then you are going to have to do things differently and think differently. My first mentor, the very first thing he said to me, what's the difference between a rich man and a poor man? And like a numbskull as a teenage boy, I said, well, duh, money. He very, very quickly said, absolutely not. It's the way they think. And if you want to be where I am or past it, then you are going to have to think differently than you've ever been trained. That's what we're going to talk about. That's why we're going to break down the eight specific areas that you've got to make sure you are not getting trapped by right now. Number one on the list, avoiding personal growth.

There's a lot to be said about the mentality of I can just live off of everything else. There's assistance, there's stuff like that. I'm not saying that that stuff can't become handy in times of stress or in times of trouble, but it's not where you want to stay. There's nothing wrong with getting started or getting a little help every now and again, but there is a problem with staying there. Lack of personal growth will keep you there. The reason I am better about managing my money, my time, my talents, and my resources now is because I was taught to do so. Now, although the teacher taught me a different way, it was up to me to apply that teaching in a different way, which is the same thing you have to do. As you learn something new and apply something new, you get progress, something new, learn something new, applied progress, which takes time. There is no such thing as a get rich quick thing. I have yet to build a single business overnight, go from zero to a million dollars. It always takes time. It always takes time to develop the skill set and the character I need to be able to manage the kind of funds and the resources that come through there. If I didn't do that, I would live in a poverty mindset. For example, if I had $100 when I was broke and I spent it all the time, that would be the same. If I had a business that was generated thousand dollars, I spend all the time. They're both poverty mindsets. You see what I'm saying? The only way you break through poverty and this mentality that comes with poverty, for lack of a better word, it is what it is, right? Let's call it what it is, is to actually grow yourself and learn and apply something new. You need to understand how compound interest works. You need to understand why you shouldn't lease things. You need to understand why credit cards are dangerous. You, you need to understand what it takes to actually get a home without credit. You've got to understand all these parts and pieces so you can put them to work for you. And that way you can build a financial future that allows you to scale over time. All right, number two, the next thing that I see, a lot of things, and again, I came from this background. I am not bashing anyone, taking responsibility, AKA deflection, so many times. I grew up in an environment where I watched people that I admired most who quote, unquote, love me and had my best interest at heart, make very bad decisions with money. And every time they made a bad decision with money, they would actually blame something else. They spent the money, they didn't have the money. Well, you know, if I'd have gotten that raise, well, you know, if, if, if our, if our insurance went up, well, you know, if, if your brother hadn't broke his leg.

It's crap.

You have the result that you planted for. If you want a different crop, you got to plant a different seed. You have to be responsible when you make a mistake. When you make a financial mistake, say, I made a financial mistake and I'm going to learn something so I don't do it again.

When you become responsible, all of a sudden, all the excuses begin to dissipate.

Excuses, like anything else, more than anything else, will keep you from actually hitting your goals. You are the reason you are held back, and you're also the reason that you can be propelled forward. The choice is always yours. All right. Now, the third thing that can hold most people back, specifically, is this mentality about spending more than you make. That is by definition the poverty mindset.

People who build wealth, people who build futures, they have this essence of delayed gratification. They are willing to invest now to reap a harvest later. People who are impoverished or operate in a poverty mindset think that they have to provide this very second rather than preparing for a future. I don't know about you, but I'd rather eat peanut butter and jelly now so I can eat filet mignon later. The reason I want to do that now is because I want to make sure I always have enough resources to save, invest, and pay my bills. I can't tell you how many times we made bad decisions with money specifically because we thought we had to have it. Now, in reality, those things were wants, not needs. And in reality, they kept us hung up. Alright, so make sure. Get me on this. Don't spend more than you make. I don't care how many friends are like, come on, let's go out, we're going to the club. Screw that. No, no, no, no. It doesn't work that way. Either you are going to build a future or you're not. And you can get started now, or you can wait five or ten years before you bumped your head enough times to figure out what I'm saying is true. For you to identify the fact that you don't need to spend money you don't have. You don't need to dream about spending money that you don't have. If you don't have $500, then stop trying to shop for a PlayStation. Stop. You're holding yourself back. Now, if you create a plan, that's a different story.

Again, the important thing is not spending more money on anything, especially when you don't make enough to cover the amount of money you're spending. That will keep you broke and impoverished longer than anything else. All right, number four, putting things off to tomorrow. People who are operating the poverty mindset. And again, I was this person. I am not judging, I am not condemning. I'm trying to help get you unstuck with a little bit of tough love. Procrastination, putting things off to tomorrow that can be done today is by definition a throttle valve that's closed. That is the surefire way to hold yourself back and not actually get the progress that you need to make. It's the easiest way. One thing that I learned when I was a kid watching everybody else around me who operate in this poverty mindset is they were always okay with saying, I'll do it tomorrow, I'll do it next week, I'll do it next month. You know what? Tomorrow never came. Next week never came. Next month never came. Next year never came. And five years later they're still in the exact same spot they were five years earlier.

You gotta put your butt in gear and get after it. If you need a part time gig, a side hustle, some kind of part time job to help earn that revenue, to help earn that thing, to get your foundation set in place, then you need to do it. When I was digging out, I had three, three part time jobs. I worked 16 hours a day and that was before I started my company.

You got to have that level of work ethic if you're going to make things happen for yourself. And especially if you're in a poverty based environment and a poverty. By the way, if you look up the word poverty, poverty is not necessarily people in a different country that don't have enough clothes or food that's extensive poverty. Poverty is not being able to cover your own needs, period. Consistently. Shelter, food, utilities, school.

These are mainstay needs that most people who are living in a poverty mindset are not able to actually have on a regular basis. Consistently they have ups and downs. Borrowing money over here, borrowing money over there, robbing Peter to pay Paul, you know the deal. I'm not saying anything that's not true. You know for a fact that this is what it feels like. And every time I can tell you from this is my personal experience, every time I spent money that I knew I shouldn't, the one that felt guilty and shameful, I'm the one that got mad at myself. I'm the one that started beating myself up again, telling myself I was never going to break the cycle.

There is so much that goes on, not just from your actions, but how it actually affects your emotions and your attitudes. When you understand the clarity comes from actually putting in the work, saving the money, putting the want off a little while longer, you're able to build a future that you can actually have and where you think, hey look, my first house, my thousand square foot house is going to Be amazing. I'm the first one in my family to have homeownership. Great. Fantastic. What if not only that, not only are you the first person to have home ownership in your family, what if you are the one that actually inspires them to do the work themselves to allow them to become homeowners in their own right?

That's impact, baby. Go after it. Alright, next up, avoid creating a plan. I promise you the simplest way to get your financial house in order is to actually put together a financial plan. And by that I mean a budget. Yes, it's a dirty word. You've heard it a thousand times. You got Mr. Ramsey out there himself that talks about it, but it's true. Truth is truth, no matter how you carve it, no matter how you say it, if you are going to break free from a poverty mindset and begin to build wealth, then you, like the rich people, quote unquote, and I use that loosely, will have to do what they do. You'll have to learn to save, invest and look for returns. But the only way you can do that is to have enough money left over to actually save, invest and return. And the only way you do that is by developing a budget and then working your way out of debt, working your way out of financial stress, working your way towards a financial goal. That's how you win. All right, next up. Depend on others to get by. Accountability. One of the things that I saw more often than not, and I am guilty of this myself, early on, is expecting other people to take care of me.

When I was younger, even though I was 15, 16 years old, I expected my parents to take care of me. Now, right, wrong or indifferent. Fortunately for me, and I look at it this way now, they weren't able to really take care of me. They weren't able to buy my school clothes, they weren't able to get me regular Christmas gifts. They weren't able to do these things that a lot of people take for granted. Now, on the surface, I'm sure they felt guilty. I'm sure it hurt them not to be able to give me the Christmas that they wanted to give me. But at the same time, it did teach me to respect money. Until I could get the training on how to operate with money to actually build a life that actually makes sense. So what are you doing right now? Who are you listening to? How are you shaping your overall financial picture? Because if you are currently depending on others to get by, then you are essentially procrastinating and kicking the can down the road, preventing you from Actually becoming successful again. I've said this at the beginning of the video. It's up to you. It doesn't matter where you come from, doesn't matter where you've been, doesn't matter what mistakes you made. If you are going to win at your own life, you are going to have to be responsible for it.

Be responsible.

Don't depend on others to get by. Be accountable to your own actions and your own choices and your own training and your own knowledge.

This world that we have right now.

Wisdom and knowledge are at your fingertips and lightning speed.

Most people who can't pay their light bill for some reason are able to pay their cell phone bill. And typically that cell phone is a smartphone.

You have zero excuse about getting financial stewardship and financial knowledge to better your financial life. Zero excuse. And if you don't have a phone and you're watching this at the library, smack on. Awesome. Congratulations being at the library. Now watch some videos on finance. Now borrow a book from the library on money on finance. Help yourself win. Alright, next up, this is bad. Now I will tell you, growing up as a kid, this is something that I used to see on a regular basis. So much so that it taught me to do the same thing. I watched the people who are in my parental figures, role models. I watch people who are responsible for taking care of me borrow money from even people like my, well, my first mentor, Steve. I watched them borrow money and never repay it. What is the definition of borrowing something and never giving it back or never returning it, never repaying it? It's called stealing.

Make your yes your yes and your no your no. I can say that because early on when I went to get myself out of debt, $75,000 plus in debt, some of it bad financial decisions on my part, some circumstances beyond my control, but collectively, $75,000. As a 21 year old kid, 21 year old kid, the only way that I felt like I could actually get myself together was to go back to all the creditors that I was avoiding answering the phone for that had been chasing me down and sending me all the collection notices. I went to work. I went to work, I got the three jobs, I went to work and I paid every stinking one of them off. Why? Because I'm the one that accepted the debt and I did not want a cloud looming over my head that appeared like anything like stealing.

Whether accidental or intentional, stealing will never take you anywhere. So you've got to make sure that if you borrow money then that goes on a list of people that you are going to repay unless that they choose to forgive that debt. Alright, last one. People who stay in a poverty mindset in poverty put wants before needs every day, all the time. Foolishness. That is straight up foolishness.

If you need to pay your light bill and you need to provide food for your family, you should not buy an Xbox.

If you need to pay a credit card payment and buy food for your family, you should not be borrowing money to buy an extravagant Christmas just because you feel guilty that you can't give your kids an extravagant Christmas.

You are teaching them bad behaviors when you do those types of things. It's better to be honest with the children. It's better to be honest. Hey guys, it's been a lean year. I'm working on getting myself out of debt. I'm working on making sure that I'm growing on a regular basis. I'm working on taking responsibility. I'm working. I'm working on making sure that I don't spend more than I have. I'm working on not putting things off. I'm working on avoiding. I'm working on actually creating a plan. I'm working on not depending on everybody else. I'm working on making sure I pay back everybody. I promise to pay so I can actually take care of our needs, build a financial future and actually build a foundation that eventually takes you to your wants.

If you do these types of things on a regular basis, and I mean consistently, this has to become second nature. This has to become part of who you are. It starts with the first step. When you do this consistently, you will get to the point where you can actually buy the things you want without it costing you a small fortune or even being a thought in your mind about whether or not you can afford it.

That's the power of understanding how your mind affects your overall level of prosperity. You, at the end of the day, are responsible for your future. And again, I can say that I know what it's like to fight and to be gritty and to take ownership and to get after it and to stop blaming everybody else because I wasn't where I wanted to be. Instead, I said, I'm going to get where I want to be and I'm going to put in the work and all you have to do is do the same thing. I hope that video is informative. Do me a favor, check this one out so you can keep moving forward.

You're worth it. Your future is worth it. Your future spouse, your future kids, your future life. You're traveling, you're speaking Whatever your thing is, you're worth it. And whether or not you actually go after it is totally up to you.