Category Archives: Rich vs. Poor Series

Rich vs. Poor: How they spend money

The number one priority for a poor person is to save money

The number one priority for a rich person is to get good value.

A poor person will take a TERRIBLE trade (like pay $1 for an item valued at $0.08 that breaks easily and won’t last) because their goal is to save money.  A rich person will take a good trade (like pay $8 for an item valued at $2 that lasts longer) because their goal is to get good value.  As a result, the poor person is losing 92% of what they spend (by giving 100 cents in return for 8 cents), while the rich person is losing 75% of what they spend (by giving $8 to get $2).  Over a long period of time, the poor person overspends and the rich person underspends. The poor person thinks they are spending less because $1 is less than $8, but that’s not the whole story. The value of the trade matters, and the value of what they’re getting is so low it’s not saving money it’s throwing away money.

The system supports this: in a fair market, you get what you pay for. So the less you pay, the worse the trade is for you. The more you pay, the more you get.

Finding good value is a skill. A necessary skill both for success and for survival. The sooner you correct for this mistake outlined above the better.

Read more about articles in the Rich vs. Poor Series here.

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Rich Vs. Poor: Cutting People Out of Your Life

-> Scroll to gray text for intense story of a daughter whose grandma abused her https://imgur.com/gallery/cbWhU

Most people are taught that family is important, and that family and parents should be prioritized.  At the same time, people are taught to cut out bad people from their life.

Poor people are statistically more likely to have bad people in their life, and traditionally it is the parents, because if the parents were good they probably would have done better and wouldn’t be poor.  Thus, poor children have bad parents.  Imagine having someone who is in charge of your life, who constantly ruins your life.  Try succeeding in that environment.

The rich are taught to cut out bad people from their life, and this usually means they lose friends.  But for the poor? They have to learn how to cut out family members in order to move on and have a better life. They have to make a harder choice, and overcome a much more difficult obstacle than the rich in order to succeed in life.

 

Rich: have the luxury and means to cut people out of their life who are bad.

Poor: Even if they want to cut out bad people from their life, they don’t have the resources to.  Chances are the cops won’t protect them in their poor neighborhood, and they don’t have the money to fight back or move away from the persecutor.  So they are stuck.

 

Read more about articles in the Rich vs. Poor Series here.

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Rich Vs. Poor – Being Yourself

Being disciplined taught me that displaying or revealing your passions, desires or wants would result in them being used against you in punishment.  When I was younger, authority figures would seek out what they knew about me in order to hurt me most, to break me and force me into obeying.  They’d find what I love and threaten to take it away, or destroy it in front of me as punishment.  As a result, I learned to never, ever, ever under any circumstance love, or show happiness, for fear of it being used against me as leverage in the future.

Poor people have this mindset: if you get to know me you’ll never hire me or work with me.  Rich people have this mindset: get to know be and accept me or we’re not working together.

As a poor person, as a child with no independence, I have no options.  It’s obey or die.  As a result, poor people have the mindset: I’ll change myself to be whoever I need to be to get hired/accepted.

Rich people have the mindset: I need to do what’s best for me, everyone else has to deal with it. Richer children may have grown up being encouraged, allowed to develop and play, to be themselves.  Thus, as adults, they continue this freedom.  Unlike the poor children, who grow up and harbor resentments, and PTSD surrounding much of their life.

Read more about articles in the Rich vs. Poor Series here.

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