Psychology of Money 101

Everyone wants to be rich. Everyone wants Versace, Rolls-Royces and Rolex despite having enough food, clothes and a nice place to stay.

The point is if we can move in a casual car then what’s the point of getting a sports car. The reason is simple. What we all do is always influenced by our surroundings. When you are born into a poor family, do you mentally become poor? When you are born into a rich family your mentality becomes rich? Is it so?

We do everything either to gain sex or to gain importance.

The first step to getting Rich

I disagree with the point. The thing that changes most in the poor is they save money to gain sex. They want importance but their socio-economic status doesn’t enable them to grab the importance in rich people's eyes. The alternative is that they buy from their little savings. In this way, their desire to gain importance in other people's eyes (mostly they will also be poor) turns the prospective rich into the damn priority. So, that poor remains poor. Rather, the rich have to spend more to grab the attention of the riches. The poor have to spend a lot of their little to grab the poor’s attention. The rich have to spend a lot to gain importance in their surrounding which would be rich. Poor’s attention is Poor but Rich’s Attention is costly.

For some generations, you may be able to hold your wealth and pass on your progeny. But as more and more generations pass on the chances of being Bankrupt also increase. This has happened a no. of times before and will also happen again in the future. Remember, everything works as a cycle in the universe and as time passes there are more chances that you will move on to the cycle. This is the reason Robert Kiyosaki says “Donate Whatever You want first” in his famous book Rich Dad Poor Dad➚.

Being Rich or poor depends on your habits and your mental understanding of cash flow. It will be finally your hard work and determination that will drive your life. The central thing determining your living standards is your economic status. The point is that money is so you can purchase things with it. Everyone knew that. The difference arises with your understanding of the money.

A Poor

The person will buy the commodities first. He/She will ruin all the money by purchasing the luxury. You will find a no. of stories where a person earned a lot of money but at the end of his/her life, the person was on the road again because with the increased income the person started to increase expenditure.

A Middle Class

They will buy the assets. The problem is that they will invest the money in such a way that the money is invested in a single place and can be only used only when the property is sold. For example, their decisions are highly influenced by emotions as in purchasing a house. The value of a house may decline with time. The middle class will not sell their home until they are in great need of it. They will invest their money in such a way that they can’t make more money from it.

A Rich

They will invest their money in such a way that the money will grow. In SIPs, Stocks, Bonds or startups. The point is they make the money to work for them. Finally, they will get rich in the long run with great returns. On the opposite, the middle class will buy a house and their money is stuck and will not show growth.

Now, you have understood the difference between the psychology of different people according to their economical status. You want to be rich is great. But you should first do some things:-

  1. Read some books like- Rich Dad Poor Dad➚, The Psychology of Money➚
  2. Try to learn Accounting and Investing.
  3. Try to use other people for your use remembering not to overthrow their needs. It’s your responsibility to keep happy with your employees and their family.

You have to provide value to your clients. That’s the thing you should focus on. This understanding will only be useful to grow and pass on that money to your future reason.

The writer believes in his readers. The readers have started their journey to be rich by reading this article. I believe you will be there one day.

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Harsh Khokhar

Harsh Khokhar

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