What is the definition of Rich in America?
Financial planner Tom Corley spent five years observing more than 350 “rich” and “poor” people, how they live, work and even sleep and captured them all in his book, “Rich Habits: The Daily Success Habits of Wealthy Individuals.” He defined “wealthy” as earning at least $160,000 annually and holding at least $3.2 million in assets. “Poor” was income under $30,000 a year and less than $5,000 in assets.
Tom Corley’s book didn’t really get into how to make money; he merely examines the daily habits.
- Early Risers – Rich Folks rise early and plan out daily activity to reading finance information
- Tasks – Rick folks complete 70% of the tasks each day. They are obsessed not only with short term goals; they also maintain long term goals and reach them as well.
- Calorie Counting – Rich people are Healthy. They don’t over indulge and limit alcohol consumption. Yes, they do run few big parties once a while, but maintain healthy life style by eating healthy, working out daily and proper sleeping habits, etc.
- No Gossip – Rich people don’t gossip, according to Tom Corley’s study. The poor people gossip 79% to 6% for rich people.
- Limited Internet – Rich people don’t use Internet for recreational use as much. They use it to their money making habits. Tom Corley’s study found a majority of those struggling with their finances spent more than an hour plus on recreational Internet use, and were twice as likely to hop on Facebook every day. Most wealthy folks reported activities such as networking, volunteering and socializing after work to unwind.
I also did some digging about the minds of rich people versus poor people in America. Read, Secrets of the Millionaire Mind, by T. Harv Eker. Basically examines the mind set of Rich people versus poor.
Some of the traits:
- Rich people began their day with definitive plan or tasks (mind set) to be completed each day – Donald Trump, Bill Gates, Warren Buffet, and Late Steve Jobs all began their day at around 5:00 ~ 5:30 A.M. Guess what they do when they first rise in the morning? Did you say check the IPHONE Facebook apps to check their friends brushing their teeth status update? No….. They all read something relevant first thing in the morning such as finance 101 wall street journal to daily tasks at hand.
- Poor people either don’t take education seriously or take on too much education (dual masters to PHD degree with no meaningful jobs) with some serious loans. If you are 55 years old and still paying off your college loans, you are in too much debt.
- Rich people make use of their time very efficiently. They use Facebook as ways to market themselves and their businesses. They use social media to market themselves to make more money rather than checking out other people so that they can keep up with the “jones”.
- Poor people use social media to “pick up guys and girls” and spend at least anywhere between 3 to 6 hours commenting, chatting, and emailing each day. Some literally spend all day (connected) since they have that wonderful smartphone.
- Rich people don’t look for quick rich scheme. They are focused on daily habits and goals to accumulate more money methodically. This is where rich people excel. They stick with their game plan.
- Poor people generally don’t read anything about finance. They rely on some get rich quick scheme on TV or Google, “how to get rich” search phrase. Poor people in general do not like to read at all.
- Most rich people do not rely on other people’s approval or concern themselves with what society think about their decision making. The reason is simple. They are too busy focused on their goals. They are always socially networking, volunteering and reading something each day. The complete opposite is true with poor people where they are on Facebook all day commenting about something to get an approval to creep’n on a new dating prospect they met online or offline. Worst yet, combine this habit with veg out in front of the TV for another 6 hours a day to gaming, you are not going to get rich in doing so.
What you have to realize, these habits are good for you. Just look at each daily activity of the rich people. If we all can apply these steps in our daily life, by default, we are going to be better. Is it hard to do? It can be if you have a limiting belief in yourself. As I wrote 16 daily habits, read it here, and if you can pull off 5 of the 16 habits for 30 days, these habits are going to be formed for you.
Finally, what is so odd about poor people is that they party and vacation each year as if they are making bank. Just because your neighbor is taking his girlfriend to Bermuda, you are also supposed to take your posse to the same spot? If you are living in the projects and decided to purchase $350.00 dollar sneakers because it makes you look cool in the eyes of their friends and peers, does this help them reach financial independence, let alone get them out of the projects?
How many hours do you spend on Social Media each day? Also, how many hours do you watch TV each day? Tally up your daily time inventory and see if you can efficiently use your slotted time each day available for you. If you have no goals, sit down and set one up immediately. Remember, “Do what you can, with what you have, where you are“. Focus on your game plan and seek out what you need to acquire in attaining your goal wherever you are located. If you can attain your goals in your current situation, you can attain any goals anywhere. -SjC