How To Develop The Mindset Of A Rich Person

overview

You might not like what I have to tell you now.

If you grew up with the mindset that you have to go to university, get a degree to find a high paying job later, then you are most likely on the path to become average.

Having asian parents, I always had the pressure to get good grades at school to get a high paying job later.

The problem is, school doesn’t make you smart. School only teaches you to ask less questions and follow the rules.

Do you know why most of us end up living a life of mediocrity?

Simply put: we all grow up learning what society dictates without questioning if it makes sense. Get good grades at school. Go to University. Study a field that is not necessarily our first choice, but rather a high paying later. Later become a doctor or a lawyer to get a high paid job and live a good life.

Once we are in the corporate environment, we can work up the career ladder and kiss asses so we won’t get fired. It becomes normal to change jobs often to make more money and to show off all the company names on our LinkedIn profile.

Fast forward…

You’re 50 now, can proudly show off your C-Title, work 80 hours a week and hardly got time for your family.

Congratulations! You made it!

only way to financial freedom

 

The only way to financial freedom

You will never be able to achieve freedom and happiness if you keep following this path.

You want to earn more money? Then you have to fight for a promotion or change your jobs.

You want to take a month vacation with your family? You ain’t got no money for that anyway. And also, don’t forget to answer your emails while you’re gone.

To become truly free and live a fulfilled life, you need to get rid of the employee mindset.

Stop thinking about your next job description and shift your mindset towards becoming a business owner or investor.

To explain what it exactly means I will borrow the Cashflow Quadrant from Robert Kiyosaki.

Let’s go through each quadrant so you can see which one you belong to and how to get out of it.

cashflow quadrant e

E stands for “Employee”

If you have a day job, you belong to this quadrant. This means you have no leverage and you exchange your time for money.

Because your time per week is limited you are not able to earn more than your time permits. The only way to earn more money is to get promoted but this also only works to a certain level.

If you are in this quadrant, you have the highest risk, because if you lose your job, you have no income.

Furthermore, the taxes and social securities are very high and almost 50% of your salary is gone before you even see it.

Being in this quadrant, it will be impossible to build wealth.

cashflow quadrant S

S stands for “Self employed” or “Specialist”

People who own a job. If you are a freelancer or a doctor, you belong to this quadrant. This quadrant is not much different from the first one.

S-People are still exchanging time for money and the money stream dries out as soon as they stop working.

They may have a higher income compared to “normal” employees, nevertheless their income is still limited by their time.

The only advantage S-People have, is the diversification of their risk.

Because most of the time they have multiple clients, the risk is limited to lose all income streams when one client drops.

cashflow quadrant b

B stands for “Business Owner”

People who successfully built their own business system and own them.

Franchise owners such as Howard Schultz, CEO of Starbucks, are good examples.

They don’t exchange time for money anymore but leverage money to work for them by hiring people (employees or specialists) to do the job.

The huge different is, if they would walk away, the business would still be running.

Howard Schultz scaled up Starbucks in a way that he can run thousands of stores without the need of physically being there.

This is the power of leverage.

cashflow quadrant I

The last quadrant stands for “Investors”

If you invest in stocks, you don’t necessarily belong to this group. Investors are people who own investments, such as real estates.

Being in this quadrant, your money is working 100% for you, 24/7.

People in this quadrant pay almost 0% in taxes and can invest nearly 100% of their money in creating more assets and becoming more wealthy.

If you get into this quadrant, you will own 100% of your time.

 

what you need to do

 

What you need to do

Summing up, if you want to achieve financial freedom and build wealth, you need to switch sides.

Move from the E and S Quadrant to the B and I quadrant.

Stop thinking like an employee but start to think like an entrepreneur.

Build more Assets and get rid of Liabilities. 

Study successful people and see how they made it.

Stop wasting your time on reading trash news and start educating yourself by reading books that will improve your life.

Stop throwing out money for materialistic non-sense and spend it on your education to improve your knowledge.

You don’t have to quit your job for that.

Most people don’t want to run their own business and employ people. A lot of people even love their day jobs and working for other people.

Fair enough.

What I am saying is: don’t put everything into one basket.

I encourage your to start with a side hustle. Create a product, service, whatsoever and try to build a second income stream.

I created a guide where you can learn to create your own physical product to sell it online and make a bit money on the side.

If you don’t want to build a physical product, here are other business ideas that doesn’t require much time and capital to start: 15 Side Hustle Ideas For Designers To Make Passive Income

Start small and grow it from there.

With this approach, you can keep your secure job but can worry less about getting fired.

It all takes time and extreme effort.

But the question is: Would you rather spent 10 years hustling your ass off to achieve financial freedom?

Or would you rather spent 40 years working your ass off to full-fill someone else’s dreams instead of your own?

We are all defined by our choices.

So choose wisely!

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Hi, I'm Ninh

I’m a UX Designer, Online Entrepreneur and World Citizen.
I currently travel around the world, build lifestyle businesses and help others to hack their creativity, personal growth and entrepreneurial mindset.