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The mentality of the rich is completely different than the way the middle class thinks. Even very high-income people are still tied to their jobs where the rich mentality ensures not only Financial Independence but also Financial Safety and Stability.
Recently I was having a conversation with someone. They were explaining the school program they were in, the job they wanted to get, and their career goals.
I looked at him and said: “So your goal is to work?”
He wasn’t really sure how to respond. I continued “Well, it seems like you have a very detailed plan and you are talented and intelligent. I think you are doing a great job accomplishing your goals.”
Confused by my words and tone, he asked: “What’s your goal?”
“My goal is to not have to work” – Eric Bowlin
I’m focused on being financially independent.
How much money makes you rich? Do you define it as cash in the bank, or income?
What about debts or mortgages, how do you account for those? Is the lawyer making $400k per year better off than the retired person making $100k passively from investments?
I bet you can’t really answer those questions.
It’s because being rich is in your head. You have a vision of what “rich” is, so if you change the image in your head, then the definition of “rich” changes. You cannot define rich as a number.
Instead, can you tell me who has the rich lifestyle:
Some readers may opt for #1, but the majority of people would prefer life #2. Obviously, there are hundreds of variations of each lifestyle, but the concept is the same – being rich is a mentality, not a number.
The person who is free from the requirement of working can lead a more meaningful life, be it through work, charity, family, or something else.
The person who needs to work can lead a meaningful life, but it would always be an improvement to be financially free.
So, if you adopt the mentality of the rich, you also can achieve the goal of being “rich,” if you so choose.
Maybe I’m an optimist, but I believe intelligent and capable people tend to achieve most of their goals. Perhaps they fall a little short, but are far better off than before, right?
The problem is that most people set the wrong goals.
If your goal is to work for 40 years and retire, you probably will achieve that goal.
You know what, if you set your goal to stop working at age 30, you can probably achieve that goal too.
The biggest problem with the middle class mentality is the constant spending on liabilities instead of assets.
It’s really simple, if you pay each month, it’s a liability. If it pays you, it’s an asset.
The middle-class invest in “homes” and “nice things” with some savings stashed in wall street.
The rich mentality is to invest in things that pay you – businesses, ideas, real estate, and more.
Many wealthy people have very small stock portfolios as a percent of their total wealth. The exception may be the ultra rich which use stocks to take over businesses (think about Warren Buffet) which just makes it a different way of taking ownership of business.
The rich focus on creating multiple streams of income.
The middle class are focused on just one stream of income and save a fraction by buying multiple mutual funds (stocks under perform real estate anyhow).
The rich have business income, rental income, referral fees, affiliate payments, website advertising, and business income among other things.
The middle class have a job.
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Eric is an investor that achieved financial independence at the age of 30. He started in 2009 with the purchase of his first triplex and now owns over 470 units. He spends his time with his family, growing his businesses, diversifying his income, and teaching others how to achieve financial independence through real estate. Eric has been seen on Forbes, Trulia, WiseBread, TheStreet, and other financial publications.
I started out as a full-time student, over $60,000 in debt, and didn't even have a full-time job (two part-time jobs). Learn the system I used to create a 6-figure passive income.
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