Submitted by Shauna
We have this notion that there are rich people, and poor people. It’s all around us. We see “rich” people in shiny cars and shiny advertisements. We see “poor people”, perhaps living in unmaintained houses. But the truth is, there’s no such thing as poor people and rich people, we’re all just people. That is to say, rich and poor are ideas that exist all in our heads.
Wealth is a state of mind
Take that example I just gave, of a beautiful young man wearing an Armani suit in a full-page advertisement in a magazine. These people look rich, but they are really actors, wearing someone else’s clothes temporarily, for the purposes of the photo shoot. They probably don’t and wouldn’t wear such a suit in the rest of their life. Suddenly in your mind, that perceived richness just disappeared, like a bubble popping. But before reading this article, if we saw that young man on the street (after seeing the advertisement), we might think they’re rich. In truth, advertising models aren’t paid that much, so it’s safe to say that they probably aren’t as rich as the advertisement makes them appear. It was an illusion. Similarly, there are lots of nice old grandfathers and grandmothers going for their morning walk, with their scruffy old dog, holding the same tattered dog leash that they’ve been using for the past 14 years, slowly plodding along in old and comfortable sandals on their feet. Certainly, not wearing an Armani suit. Sometimes you’ll talk to them by chance, thinking that they’re poor and living on a pension, but are surprised to find that they spend every winter in Florida, and have two boats. That poorness that you imagined exists only in the mind, and it isn’t present in external signals like shabby clothes. So, in this way, being poor and rich is an illusion.
Fluid and ever-changing
You’re not born rich and then stay rich for life. Similarly, there are lots of amazing stories of people coming from very humble beginnings, and then rising up, to build a great life and wealth for themselves, and pull their new family out of poverty, into the middle class or even into the upper class with power and influence. So, it’s a mistake to think of yourself as poor or rich. In fact, you shouldn’t even feel bad about being without money at one point in time. Everyone goes through periods of financial ups and downs, just like stocks on the stock market, companies big and small, and even entire countries. It’s natural, so be ok with it. And on the other hand, you should check yourself when you’re feeling like the ruler of the world, just because you came across a bit of money. There’s no shame in being broke occasionally. If you used to drive a Lexus, it’s fine to trade it in for a VW Beetle, to measurably increase the quality of your life in other areas. Maybe that extra money will give you a soft landing, and will help you find a better or more enjoyable job. I’m proud to say that I’ve done this myself. I was doing well, with a stable job, and after the end of one romantic relationship, I had a Louis Vuitton bag sitting around as a previous gift. As high-quality as it was, it wasn’t my favorite, and I didn’t want to mentally dwell on that past relationship in the future, so when a friend said to me, “You should find out how much your luxury handbag is worth“, I realized that it was a great idea. So, off it went. I used the funds to give myself more breathing space and put the rest onto a bill that I had coming up, and it was one of the smoothest periods of financial stability of my life. Many other people might have felt despair, and that their life was “falling apart”, but I didn’t. Because I understood that you’re neither rich nor poor, and neither do you pick one of those states and stay there. Things ebb and flow.
Acknowledge the truth
As the famous comedian Dave Chappelle says, being poor is a mentality. Now, you shouldn’t delude yourself, you need to acknowledge that you’re broke when you are: if you have no money, then you have no money, and it’s dangerous to pretend otherwise. But don’t assign yourself to the victim-hood of being poor. Money comes and goes. Sometimes you’ll be broke, sometimes you’ll be flush with cash. But in both cases, and especially when transitioning from one to the other, be mentally wealthy. As a side effect, money will come to you, if you work for it. Have an abundance mindset, not a scarcity mindset. Being poor is planting yourself firmly in the scarcity mindset.
Conclusion
The biggest money mistake that people make is believing that they can’t change their situation. If you’re broke, it doesn’t mean you have to be poor forever. You can take control of your life, get a good job, and take care of your family. Advice for the middle class: If you’re not rich, you’re not poor either. Be satisfied with your current situation, many would kill to be where you are. Even if you’re not a CEO, you have the same power to change your life that a CEO does, and you can do it in a matter of years. Advice for the rich: If you’re rich, don’t rest on your laurels. You’re rich today, but that doesn’t mean you’ll be rich tomorrow. Keep working hard. The goal is to be mentally wealthy. Money is a tool, not a goal. Wealth is a state of mind.