Self Development November 5, 2020

Poor vs Rich mindset - thoughts?

Jim Zarkadas @jimzarkadas

Copied the following from an article I read online in order to discuss it all together.

I 've been asking myself for the past few weeks "how many tasks did I get done today". It's new to me to think about value vs amount of tasks I completed, and I see that sometimes I struggle to form this new way of thinking.

Poor people think in terms of hours worked. Rich people think in terms of value produced.

“The money you make is a symbol of the value you create.”
― Idowu Koyenikan, Wealth for All

When you ask a poor person if they’ve been productive today, their response is in terms of hours worked. “I worked for 7 hours at work today.” “I spent 3 hours on this project.” “I spent like 2 hours cleaning the house today.”

When you ask a rich person if they’ve been productive today, their response is in terms of value-added. “I shipped a final product today.” “I’ve cleaned the entire house.”

That’s because poor people are paid in terms of hours worked and rich people are paid in terms of value-added.

Poor people get hourly jobs. Rich people get salaries. The richest people get equity, and then they get paid based on the success or failure of a business venture.
The richer you get, the less your hours worked matters.

To do what rich people do, stop thinking in terms of hours worked. Start assessing your own productivity based on how much you get done. As your priorities shift, you’ll start getting more done per hour.

Here is also the full article:

  1. 4

    I find the rich vs poor dichotomy very toxic, because it polarizes everything, and makes people that engage in this line of thinking less likely to actually help the others. Everybody has different stories and disrespecting somebody because you categorize and dismiss them as poor is not making you a better person. It just makes you an asshole who looks down on others.

    1. 3

      I agree on the toxic part. If it gets translated to the “smart” and the “stupid” or “strong” and “weak” then the whole point is lost.

      The interesting part is the mindset and habits of each person. How they treat progress, growth and changes in life. In no case a poor person is a stupid or weak one.

      From my personal experience I ve seen that for example the discipline of being consistent and doing small steps has a huge impact on my personal well being and financial growth. I have friends that don’t get this idea and remain stuck because of this. They think it’s all or nothing. In this case we could say I adopt “the rich” person mindset and they get stuck with the “poor” one.

      Thinking about your comment I believe the poor and Rich are bad keywords to describe this concept.

      Wealthy person I think is better compared to rich in terms of communication. Because this mindset is about mental and spiritual wealth, not only financial one.

      What do you think?

  2. 2

    I'm more of a fan of the hourly vs investment mindset, since it's less about an identity and more about an actual way of thinking:

    1. 1

      Good one! Thanks for sharing :)

  3. 2

    It's an interested abstraction, but in my opinion slightly simplistic. While I'm sure there's a correlation there, that doesn't automatically imply causation. A wide range of factors are likely to contribute to someone's station in life such as education and where you grew up. I'm sure that changing your mindset could open up certain opportunities, but it will still require a lot of hard work. Especially if life hasn't given you a lot to start with.

    1. 1

      Yeap that's very true. The starting point and the first kind of influence we'll have have plays a huge role for our next steps.

  4. 1

    Revenue is the result of using leverage not of providing value. For example, a slave provides value but she has no leverage... When the State gives her leverage by way of freedom and rights, she can extract a revenue from the value she provides. No leverage means no revenue, unless the other party is charitable.

    Likewise, one can extract revenue using a weapon or threats as leverage: no need to provide value.

    Great value can be provided for free, like free software: the Internet and the financial sector run mostly on Linux.

    1. 2

      Really like this. Leverage is the key, thanks for sharing!

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