The top 10 distinctions between millionaires and the middle class

If we are willing to think in the long run, we’re all ready to reach success is the starting point that author Keith Cameron Smith presents on his book for revealing the top 10 mindsets of millionaires for achieving financial security and a successfull life, based on determination and generosity.

According to The Top 10 distinctions between millionaires and the middle class, those that search for financial freedom, in spite of only having enough in terms of convenience, eventually find it. The top ten characteristics of millionaire minds are:

1. Thinking in the long run

The middle class thinks in short terms. The millionaires think in the long run. Smith tells us that very poor people think daily; poor people think weekly; middle class, montly; rich people think yearly; and millionaires, by decade.

He says that people tend to overestimate what they can do in one year and underestimate what they can do in one decade. Long term goals are a key for financial growth planning.

2. Talking about ideas

The middle class talks about things and the other people. The millionaires think in the long run. The author writes that many millionaires are creative and spend their time thinking about new ideas. In their projects, they consider diverse options and possibilities.

Smith recommends reserving a time slot for dreaming every day, with the purpose of increasing creativity.

3. Accepting changes

The middle class views changes as a threat. The millionaires gladly accept changes. Change can be positive or negative, but the middle class assumes that the change is usually a negative event. Millionaires search for opportunities in both kinds of change.

4. Taking calculated risks

The middle class is afraid of taking risks. The millionaires take calculated risks. While middle class is struck by fear, millionaires overcome it through knowledge. Very rich people adopt risk management procedures.

Fear of failure, fear of rejection and fear of loss are common fears among middle class people, but they can cloud real weighting of a bad outcome.

5. Continued learning and growing

The middle class thinks that learning ends with formal education. The millionaires continually learn and grow. Smith tells that reference source recommendations for each other are common in his circle of influence, and that most millionaires he knows read one book per week. Besides having their priorities in order, millionaires invest in knowledge acquisition.

6. Working for profit

The middle class works for salary. The millionaires work for profit. Salary is the payment for the activities we do, while profit is the result of buying something for a certain price and selling it for a a higher value. The income from salary is limited by our working hours, while the income from profits is limitless.

7. Practicing generosity

The middle class believes they can’t give. The millionaires believe in generosity. Though not all millionaires are generous, Smith sees practicing generosity as way of ensuring that money doesn’t control us.

8. Creating multiple income sources

The middle class has only one or two sources of income. The millionaires have multiple sources of income. The secret for creating multiple sources of income is generating sources of passive income, that require little maintenance or administration.

9. Increasing net worth

The middle class focuses on salary raise. The millionaires focus on increasing the net worth. The definition of net worth is assets minus liabilities.

Assets are bens that generate passive income. Liabilities are all your financial obligations, such as rent, car prestações, credit card debts and personal loans.

Some actions for increasing net worth are: transforming your salary in passive income, opening your own business, investing in real estate and in stocks.

10. Asking themselves relevant questions

The middle class asks themselves weakening questions. The millionaires ask themselves strenghtening questions. You can ask yourself how you can win enough money to pay the bills this month or how you can double your income this year.

Strenghtening questions focus on what we can do, while weakning ones, on what we can’t. Smith remind us that it takes the same amount of energy for asking the limiting or the motivating question.

Smith’s book shows that the adoption of this mindset is a necessary attitude for those that aim to get rich honestly, doing what they enjoy, without negleting their relationships and other important parts of their lives.