How Rich People Think by Steve Siebold
This book will teach you how rich people think. It compares the thoughts, habits and philosophies of the middle class to the world class when it comes to wealth. The differences are as extreme as they are numerous. The strategy is simple: learn how rich people think, copy them, take action and get rich.
This book hits hard and never lets up. It’s based on a quarter century of interviews with millionaires. It’s written in unfiltered, politically incorrect language that makes the point crystal clear and easy to follow. The hundreds of millionaires interviewed for this book had nothing to gain by sharing their secrets, nor any interest in sugar-coating their advice. These people gave Steve unprecedented access to their lifestyle and playgrounds; from Palm Beach to Aspen. Steve was searching for the raw, uncensored truth about how rich people think, and they agreed to share it with him on the promise that their names never be published and their remarks never made public. Steve mixed their wisdom with his words, and the result is a book so brutally honest it will shock some and inspire others.
If you’ve ever dreamed of living a life most people only see in movies, study this book like a scientist. Freedom from financial worries and a millionaire’s lifestyle is closer than you think.
How Rich People Think Summary
Driven by the fear of loss and uncertainty of the future, the masses focus on how to protect and hoard their money.
While world-class thinkers understand the importance of saving and investing, they direct their mental energy toward accumulating wealth through serving people and solving problems.
Middle class focuses on saving… World class focuses on earning
The self-made rich aren’t afraid to take calculated risks, because they know if they lose they can make it all back. While the middle class is always looking for the home run investment that will make them wealthy, the world class invests wisely, knowing the bulk of their fortune will come from the service they provide.
Your current financial status will give you an idea of your past thinking. If you’re rich, keep thinking the way you’re thinking. If not, maybe it’s time for a change.
“Money is power, and you ought to be reasonably ambitious to have it.” — Russell Conwell
Middle class thinks about money in linear terms… World class thinks about money in non-linear terms
The wealthy know big money requires thinking about it in non-linear terms. The great ones are masters at generating money through ideas that solve problems. They realize since there is no limit to ideas, there is no limit to how much money they can earn.
The masses waste a substantial percentage of their mental energy worrying about money, while the champions are fearlessly directing their focus to becoming wealthier every day.
“The entire essence of America is the hope to first make money—then to make money with money— then make lots of money with lots of money.” — Paul Erdman
Always look for the obvious, simple, linear solution first. If that doesn’t work, start brainstorming the unobvious, more complex, non-linear solutions.
Middle class believes hard work creates wealth… World class believes leverage creates wealth
If hard work was the secret to financial success, every construction worker and cocktail waitress would be rich. The wealthy strategically focus their efforts on the most profitable areas of their business while leveraging their contacts, credibility and resources to maximize the results of every action they take.
The average person is playing life’s proverbial slot machine, while the wealthy own the slot machines.
“People with leverage have dominance over people with less leverage. In other words, just as humans gained advantages over animals by creating leveraged tools, similarly, humans who use these tools of leverage have more power over humans that do not. Saying it more simply, ‘leverage is power’.” — Robert Kiyosaki
Make a decision to let go of any limiting beliefs you have about hard work, and start thinking about how you can use leverage to become more successful.
Middle class believes money is the root of all evil… World class believes poverty is the root of all evil
The average person has been brainwashed to believe rich people are lucky or dishonest.
World-class thinkers consciously build beliefs about money that serve their best interests and help them develop substantial sums. It’s not intelligence or education that holds back the average person from getting rich, it’s the middle-class beliefs around money that keep them struggling to survive in a world of abundance.
If you want world-class wealth, copy the beliefs of the wealthy, knowing you will eventually begin to behave based on those beliefs. While the masses are searching for the answer on the outside, the great ones know building wealth starts on the inside.
“Run for your life from any man who tells you that money is evil. That sentence is the leper’s bell of an approaching looter.” — Ayn Rand
Decide to be proud of your ambition, and ignore people who tell you wanting to be rich is wrong.
Middle class believes being rich is a privilege… World class believes being rich is a right
The average person believes being rich is a privilege awarded only to lucky people. World-class thinkers know in a capitalist country they have the right to be rich if they’re willing to create massive value for others.
Rich People believe if they make life better or easier for others, it’s their right to be rich. They’re always thinking of new ways to build a better mousetrap, and are often scorned by the masses for being materialistic, self absorbed and greedy.
The Rich ones believe they have the right to be as rich as the value they create. So in place of watching football games, memorizing batting averages, and playing video games, they are laser focused on new ideas that have the potential to build their wealth.
Middle class believes money is complicated… World class believes money is simple
The masses believe making money is mysterious. World class thinkers know money flows from ideas. They know the more value they create in the marketplace the wealthier they will become.
The rich see making money through the eyes of endless possibilities and aren’t afraid to stake their claim. No matter how often they fail, they persist until they succeed.
There is no mystery to getting rich, but this limiting belief stops most people from ever trying. Has it ever stopped you? Is it stopping you now?
“Successful people make money. It’s not that people who make money become successful, but that successful people attract money. They bring success to what they do.” — Wayne Dyer
Middle class believes rich people are crooks… World class believes rich people are ambitious
The average person has been programmed in childhood by wellmeaning parents, teachers, coaches, clergy and others of influence to believe rich people acquire wealth through dishonesty and deceit.
World-class thinkers know the majority of fortunes were built through ambition, drive and vision.
The world class takes full responsibility for their own results and direct their mental energy towards getting rich.
“I’m tough, ambitious, and I know exactly what I want. If that makes me a bitch, okay.” — Madonna
Middle class believes building wealth is a solitary effort… World class believes building wealth is a team effort
The average person clocks in at nine and out at five. They are paid for the results of their individual efforts. This limits what they’re worth to an organization.
The world class knows it takes a team to build wealth, and they focus much of their effort on finding the right people to leverage their actions and ideas. The greatest fortunes are built through the collective mental and physical contributions of a world-class team.
The rich see themselves as team leaders, whether their teams consist of employees, partners, or outsourced contractors. They assemble their team and carefully orchestrate each move the team makes according to a well-planned strategy.
The masses are more ego-focused than results oriented. The great ones want to win, and are more than willing to feed the egos of their teammates in exchange for profits.
“Teamwork is so important that it is virtually impossible for you to reach the heights of your capabilities or make the money that you want without becoming very good at it.” — Brian Tracy
“Money is a guarantee that we may have what we want in the future. Though we need nothing at the moment it insures the possibility of satisfying a new desire when it arises.” — Aristotle
Middle class believes the road to riches is paved with formal education… World class believes the road to riches is paved with specific knowledge
While the rich respect the power of formal education, they usually don’t associate it with building a financial empire. Many world-class performers have little formal education, and have amassed their wealth through the acquisition and subsequent sale of specific knowledge.
Formal education teaches people how to think and perform in the linear world of commerce, but the rich rarely become wealthy trading time for money. The great ones operate from a non-linear mindset that keeps them perpetually in a consciousness of creative thought.
“Formal education will make you a living. Selfeducation will make you a fortune.” — Jim Rohn
Decide today to become a life-long student and take control of your own self-education. Read, listen to CDs/Mp3s, and attend seminars on subjects that can help you build your fortune.
Middle class believes money is earned through labor… World class believes money is earned through thought
The average person believes the harder they work the more money they’ll make. Their linear thinking equates labor and effort with financial success. This is why most people aren’t rich.
The rich know that creative thinking is the highest paid skill in the world. Independent, creative thinking is the most valuable asset anyone can acquire.
“The real source of wealth in this new era is not material things. It is the mind, the human spirit, the human imagination, and our faith in the future.” — Steve Forbes
Commit to investing at least one hour per day studying subjects that will help you move closer toward your ultimate vision.
Middle class worries about running out of money… World class thinks about how to make more money
Poor people spend more time thinking about money than rich people. The problem is poor people spend this time worrying about what they’ll do if they lose their job, get sick, or exceed their budget through poor planning or bad luck.
World-class performers find problems that are profitable to solve, and spend most of their time focused on solving them.
How much time do you spend worrying about money compared to the time you spend engaged in creative problem solving?
Identify the biggest problem in your business or industry, that if solved, would earn you a fortune. Then go solve it.