Have you ever wondered why are you still poor? Most of us are good at spending like the rich, but not thinking like rich.
In this video, I’ll be telling you why we are still broke, and how we can think like a rich person, in order to become a rich person.
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0:00 – Intro
0:51 – Pay Yourself First
Every month, we pay the phone company, internet company,utility company, Netflix, SMRT and even the government. We are paying everyone, except ourselves. This can be seen when a study showed that 70% of Singaporeans are unable to handle a job loss of more than 6 months.
Paying yourself first means prioritising your money for yourself, my precious, instead of paying other people first. So, to think like the rich, every month, once you receive your paycheck, immediately pay yourself first by saving at least 20% of your income. Park the money at a high yield savings account that will give you slightly higher interest.
2:48 – Buying Stuff Costs Time
To think like the rich, is to realize that whatever money you are spending, is actually exchanged with time. We would spend so much time exchanging our time for money, then quickly use that money to buy stuff that we don’t actually need in the first place. So, the next time you want to buy something, just ask yourself this, how much will this cost my life? Is it worth exchanging a part of my life for it?
4:11 – Get Paid Based On Results
How much you are getting paid is just dependent on how big of a problem you are trying to solve. If you are getting paid based on time, no matter how much work you put in, your pay will still be the same. So, to earn money like a rich person, you have to get paid based on results, not time. The larger problem you can solve, the more money you will earn. Money is nothing but the byproduct of solving problems for people. You don’t have to create the next big thing to be rich. You can start by thinking what you are good at, because everyone is good at something. The more people’s problems you can solve, the more money you will earn, regardless of the amount of work put in.
6:40 – Using Investments To Pay
The rich get richer, and the poor get poorer. While we only use money to exchange for stuff that we need, the rich use money to exchange for more money. For example, if we invest in a dividend stock, and if we only spend the dividends, our money will be infinite. So, the next time you want to afford something, ask yourself this. How much money should I invest so that I do not have to use my own money to buy the stuff.
8:46 – Think Long Term
To be like the rich, you have to think long term. The 1% principle states that you just need to make a 1% change in your life everyday. After 365 days, you will 37.8 times better version of yourself. So, think long term, plan ahead and eventually you will become the person that your younger self would look up to.
10:12 – How You Think Affects Your Future
What you think, will affect what you become. For example, if you think you are an average person who will never achieve anything in life, you would be right. That’s because. if you feel that you will never achieve anything in life, you wont put in the effort to improve yourself. But if you think you are born to be successful, you will achieve exactly that. You will keep trying until you succeed, and that’s what separates the successful people from the not so successful people.