How Rich People Think About Money (Psychology of Money)

Summary

In this video, Myron Golden explores the impact of psychological attitudes towards money on one's financial status. He argues that being rich, poor, or middle-class is less about the amount of money one has and more about one's mindset. Golden suggests that the belief that 'time is money' is a fallacy, emphasizing that time is more valuable than money. He outlines different money psychologies: the poor see money as for paying bills and buying things, the middle class use it to maintain credit and buy unaffordable items, while the rich view it as a tool to create more wealth. He encourages viewers to adopt a rich mindset, seeking opportunities to invest and grow their money.

Takeaways

• 💡 The difference between rich, poor, and middle-class people is more about their psychology towards money than the amount they have.
• 🔍 Money psychology is more influential on one's financial status than their job, upbringing, or ethnicity.
• 🚦 Perspective plays a crucial role in shaping one's psychology towards money, similar to how different people see a traffic accident differently.
• 📈 The 'HAVE' mentality (Holding A Job) is flawed as it equates time with money, which is a costly lie since time is more valuable than money.
• 🏢 The 'Own A Job' (OJE) approach to entrepreneurship is misguided; true business ownership involves creating systems that generate income without constant personal effort.
• 🌱 The 'Own A System' (OS) strategy is about establishing mechanisms that continuously generate income, such as writing books or running membership sites.
• 💰 The 'Sow Money Seeds' (SMS) approach is about investing money to grow wealth, which is a hallmark of the rich psychology.
• 🛒 Poor people view money primarily as a means to pay bills and buy things, which keeps them in a cycle of poverty.
• 💳 Middle-class individuals see money as a tool for maintaining good credit to afford purchases beyond their immediate means.
• 📊 Rich people believe the main purpose of money is to multiply it, always seeking ways to turn one dollar into many more.
• 🚀 The psychology of seeking opportunities over guarantees and focusing on wealth multiplication is key to developing a rich mindset.

Q & A

What is the main point of the video by Myron Golden?

The main point is that the psychology of money, rather than the amount of money one has, determines whether a person is rich, poor, or middle class.

Why does Myron Golden argue that the difference in wealth is not about the amount of money people have?

He argues that it's the psychology around money that dictates one's financial status, not the money itself.

What does Myron Golden suggest is the first step in understanding the psychology of money?

The first step is recognizing that perspective plays a significant role in shaping one's psychology towards money.

How does Myron Golden use the analogy of an intersection to explain different perspectives on money?

He uses the intersection analogy to illustrate that different people standing at the same intersection (or facing the same financial situation) will have different views and reactions due to their unique perspectives.

What is the term 'HAJ' as used by Myron Golden, and what does it represent?

'HAJ' stands for 'Have A Job', representing the mindset that equates having a job with making money, which Golden suggests is a limited perspective on wealth creation.

What does Myron Golden claim is the most expensive lie that people believe about time and money?

He claims that the lie 'time is money' is the most expensive, as it leads people to undervalue the true worth of their time compared to money.

What is the difference between owning a job and owning a business according to Myron Golden?

Owning a job means being the only person working in a business, whereas owning a business involves creating a system that works for you, not just by you.

What does 'OS' stand for in the context of Myron Golden's video, and what does it imply about wealth creation?

'OS' stands for 'Own a System', implying that successful wealth creation involves owning systems that generate income passively.

What is the primary purpose of money according to the psychology of poor people, as explained by Myron Golden?

According to Golden, the psychology of poor people views the primary purpose of money as paying bills and buying stuff.

How do middle-class people differ from poor people in terms of their psychology towards money?

Middle-class people view money as a means to create and maintain good credit, allowing them to buy things they can't afford and pay off debts with future earnings.

What is the key difference between the psychology of rich people and that of middle-class or poor people, as per Myron Golden?

The key difference is that rich people view the primary purpose of money as a means to generate more money, seeking opportunities to invest and grow their wealth.

How does Myron Golden describe the ultimate goal of a person with the psychology of a rich person?

The ultimate goal is to develop a system that generates enough income to not only cover all expenses but also allows for the enjoyment of wealth without having to work for it.

Outlines

00:00

💰 The Psychology of Wealth: Perception Determines Financial Status

Myron Golden introduces the concept that one's financial status is not solely determined by the amount of money they possess but rather by their psychological approach to money. He argues that whether a person is rich, poor, or middle class is more about their mindset than their job, upbringing, or ethnicity. Golden emphasizes the importance of perspective, using the analogy of an intersection (marked with a dollar sign to symbolize the cost of accidents and the accidental nature of wealth accumulation for many) to illustrate how different viewpoints can lead to different financial outcomes. He suggests that understanding the 'psychology of money' is key to changing one's financial situation.

05:00

🔄 Transitioning from Time-Selling to System-Owning Entrepreneurs

Golden discusses the evolution from being a 'HAJ' (Have A Job) individual, who sells their time for money, to an 'OGE' (Own A Job), which he humorously points out is not truly owning a business but rather owning a job. He advocates for becoming an 'OS' (Own System) entrepreneur, where one creates a system that generates income passively, such as writing Kindle books or running a membership site. Golden stresses the importance of building systems that produce recurring income, rather than relying solely on one's time and effort. He contrasts this with the 'SAMS' (Sow Money Seeds) approach, where money is invested to grow and generate returns, leading to both financial abundance and the time to enjoy it.

10:02

🌱 Cultivating the Mindset of Wealth Through Investment and Opportunity

In the final paragraph, Golden distinguishes between the financial psychologies of the poor, middle class, and rich. Poor people view money primarily as a means to pay bills and buy things, which, according to Golden, perpetuates their poverty. Middle-class individuals aim to maintain good credit to afford lifestyle choices beyond their means. In contrast, rich people see money as a tool to generate more money. Golden encourages viewers to adopt the rich mindset, which involves seeking opportunities over guarantees and focusing on how to multiply their earnings. He concludes by advising that holding onto money to let it 'get pregnant and have babies' is the way rich people think about their finances, and spending only the 'baby money' that results from such investments.

Keywords

💡Psychology of Money

The 'Psychology of Money' refers to the mental attitudes, beliefs, and behaviors individuals have towards money. In the video, Myron Golden emphasizes that one's financial status is more a reflection of their money psychology than their job or external circumstances. The concept is central to the video's theme, suggesting that changing one's mindset towards money is crucial for financial success.

💡Rich, Poor, Middle Class

These terms are used to describe different socioeconomic statuses. In the script, Golden argues that the difference between these groups is not just about the amount of money they have, but more significantly, their psychological approach to money. The video explores how the rich, poor, and middle class perceive and interact with money differently, affecting their financial outcomes.

💡Perspective

Perspective, in this context, is the individual viewpoint or way of thinking about a situation. The video uses the analogy of people at an intersection witnessing an accident to illustrate how different perspectives can lead to different interpretations of the same event. Perspective is integral to understanding the video's message that one's viewpoint on money shapes their financial destiny.

💡Time is Money

The phrase 'Time is Money' is a common belief that time and money are equivalent. However, Golden refutes this notion in the video, stating that time is more valuable than money because it is finite. He uses this concept to critique the idea of trading time for money, which he suggests is a flawed approach to wealth accumulation.

💡HAJJ (Have A Job)

HAJJ is an acronym used in the video to represent the mentality of those who believe that having a job is the way to make money. Golden criticizes this mindset, suggesting that it limits one's financial potential. He contrasts it with other approaches to money, such as owning a system or investing (SAMS), which are more aligned with the psychology of wealth.

💡Owning a Business vs. Having a Job

The video distinguishes between owning a business and having a job by suggesting that many people who think they own a business are actually just trading their time for money, similar to having a job. Golden encourages the audience to think about creating systems that generate income, which is a characteristic of true business ownership.

💡Systems

In the context of the video, 'Systems' refers to mechanisms or processes that generate income passively. Golden advocates for building systems as a means to achieve financial success, rather than relying solely on active income from a job. Examples of systems mentioned include writing Kindle books or running membership sites.

💡SAMS (Sows Money Seeds)

SAMS is an acronym representing the investment mindset, where money is planted with the expectation of growth. This concept is presented as a superior approach to money compared to merely working for it or owning a job. Golden illustrates this with the idea of money 'getting pregnant and having babies,' emphasizing the power of compounding returns.

💡Opportunities vs. Guarantees

The video contrasts the desire for 'Opportunities' with the demand for 'Guarantees'. Golden suggests that the rich seek opportunities to grow their wealth, while the middle class and poor often prefer the security of guarantees. This mindset is portrayed as a key differentiator between those with a psychology of wealth and those without.

💡Wealth Accumulation

Wealth Accumulation is the process of increasing one's wealth over time. The video discusses various strategies for wealth accumulation, such as changing one's psychology towards money, investing, and creating income-generating systems. It is a central theme in the video, with Golden arguing that the rich focus on turning money into more money.

💡Financial Psychology

Financial Psychology is the study of the mental processes and behaviors related to financial decision-making. In the video, Golden uses the term to describe the internal beliefs and attitudes that influence one's financial actions and outcomes. He posits that adopting a rich person's financial psychology is essential for escaping poverty or the middle class.

Highlights

The psychology around money determines whether one is rich, poor, or middle class.

The difference in wealth is more about one's mindset rather than the amount of money one has.

Wealth is not determined by one's job, upbringing, gender, or ethnicity, but by their money psychology.

An illustration of perspective using an intersection and an accident to represent life's financial challenges.

Perspective on life contributes to one's psychology, including the view on money.

The 'HAJ' mentality of having a job to make money is critiqued as a limited approach.

Time is considered more valuable than money, contrary to the common belief that 'time is money'.

Owning a job ('OJE') is not the same as owning a business; the latter involves creating systems.

Systems, not jobs, are key to wealth creation according to W. Edwards Deming.

The 'OS' approach of owning a system is the pathway to consistent wealth generation.

Investing money to grow it ('SMS' - Sowing Money Seeds) leads to financial freedom.

The poor psychology focuses on money for paying bills and buying things, leading to a cycle of poverty.

Middle-class psychology views money as a means to maintain good credit and buy unaffordable items.

Rich psychology seeks to turn money into more money, focusing on investment and growth.

The importance of seeking opportunities over guarantees in the pursuit of wealth.

Developing the rich psychology involves never spending the 'mama money' but only the 'baby money'.

The final message encourages viewers to adopt the mindset of turning every dollar into more.

Transcripts

hello youtube my name is myron golden

and i want to share the psychology of

money rich poor middle class because the

psychology you have around money is

going to determine whether you're rich

poor middle class

here we go

[Music]

most people make the mistake of thinking

that the difference between rich people

poor people middle class people is how

much money they have i submit to you

that how much money you have has more to

do with whether you have the psychology

of a rich person or middle class person

or a poor person so and the difference

between how much money you make whether

you're rich poor middle class has way

more to do with your psychology than it

does with your job it has way more to do

with your psychology than it does um

with the side of the tracks you grew up

on has way more to do with your

psychology than it does whether you're a

man or a woman or whether you're black

white asian or hispanic

or whatever your ethnicity is how much

money you make is determined by whether

you have the psychology of a rich person

a poor person or a middle class person

and when i discovered that it was like

game changer for me so i'm going to give

you a little bit of perspective i'm

going to give you first first lesson on

perspective is this so

if you are standing at an intersection

this is my best

this is my best

illustration of an intersection you're

standing at an intersection and you see

an accident

right there in that intersection now

you're probably wondering

why did i mark an intersection with a

dollar sign because if you have an

accident i guarantee you it's going to

cost you some money right okay and other

and also for most people if they make

any real money in their life they did it

by accident so those are the two reasons

i marked

the accident with a money sign so um

when you if

what you see you're all if four people

are four different people are standing

on this intersection

right

what they see

is going to be completely different

because of one thing

what's that that's

their perspective

and if you think about it perspective

your perspective on life is what

contributes to your psychology so your

perspective on money you're for like if

four people are looking at the same

accident did they see the same accident

well yeah they saw the same accident but

did they see the same thing they didn't

they all saw something different why

because they were looking at it from a

different perspective so if we take this

intersection and we convert that

intersection from an intersection into a

window so now we've got a window with

four

different

window panes right so how we look at

money

is going to be determined our money

psychology our money

psychology

wow it worked well

our money psychology

is going to be determined

by

by the perspective we have where are you

looking at money from are you looking at

money from the perspective of a rich

person a poor person or a middle-class

person and so that's going to be the

thing that determines your money and so

um the first piece of the psychology of

money is

how what's your psychology around making

money well um if you're if you're this

person your psychology around money your

your name is probably

hajj we're gonna call you hajj right you

say haj what's that what's that mean it

means have a job the way to make money

is to have a job what does that mean

that means you sell a whole bunch of

your time for a little bit of somebody

else's money right um and the reason you

do that is because your whole life

you've been lied to they told you your

entire life um that time is money you've

heard this your whole life time is money

time is money time is money time is

money is one of the most expensive lies

you can ever buy so don't buy the lie it

costs too much so so time is money time

is not money time is infinitely more

valuable than money if you run out of

money you can get more money but if

you're out of time you don't get more

time right

i don't think there's anybody here if i

said i would write you a check for a

million dollars a day today that will

clear the bank by the way i'll write you

a check for a million dollars today how

many you want that money all you say i

want the money i want the money but if i

said there's one stipulation you have to

end your life today and now nobody wants

it why because all of us know

the potential of tomorrow is greater

than any amount of money today that's

going to cause us to lose all of our

tomorrows are y'all so hopefully what

i'm saying is making sense to you but if

i said if the doctor told you today and

you had a million dollars in all million

dollars was your total life savings and

the doctor told you you were gonna die

but there's an antidote and it can save

you and um it's gonna cost a million

dollars and it's worked 100 of the time

would you use that

million dollars to buy that antidote of

course you would why because intuitively

in your soul

your soul knows that time is more

valuable than money but your mind has

been tricked by the cultural hypnotic

societal mechanism into believing that

time is money but time is money is a lie

don't buy the lie it costs too much okay

so then what you do is you're like this

have a job thing ain't working so you go

over here you go over here to this guy

and your name becomes oge you say oh

who's oh she's own a job and most people

what they do they think they want to

become entrepreneurs and so what they do

is they go out and they buy a business

or they start a business where they are

the only person working in that business

well that is not that that's not owning

a business most people think they own a

business what they really own is a job

and i said to people well you can get a

job for free why would you want to go

buy one right and so they're a person

who goes out and buys some lawn mowers

and they start a landscaping service or

they go out and buy some buckets and

some mops and they start a cleaning

service what you should do instead is

you should figure out how to create a

system i love what w edward edwards said

he said systems under which people work

account for 90 of the failure therefore

the key to success in any endeavor is to

perfect the system oh okay cool got it

so what do i want to do you don't want

to be this guy you want to be this guy

you want to be os

oh so what's that own a system what's a

system a system is some mechanism that

you use that makes you money every month

like

did you know that you could write a

kindle book a month if you wrote one

kindle book a month you could eventually

get that kindle book making you a

thousand dollars right so you're selling

a thousand dollars worth of that kindle

book every month you get by the end of

12 months you got 12 books

congratulations you got a business you

got a system that's paying you twelve

thousand dollars twelve thousand dollars

a month if you have a membership site

and the membership site costs you ninety

seven dollars you cost your members

ninety seven dollars a month you go out

and you get

two hundred members you're making twenty

thousand dollars a month so think from a

perspective of what kind of systems can

i create

that will pay me for the rest of my life

this is what this is what a real

business owner owns a real business

owner own systems so we have systems in

place where we have hundreds and

hundreds of dollars of book sales that

come in every day hundreds and hundreds

sometimes thousands and thousands of

dollars of ticket sales for our events

every day and then we've got

transactions of products and offers that

we've created that because we own a

system and then then the last guy you

want to become is you want to you want

to become the sms sms

okay we'll call him sams okay so sam's

what do what does sam's do sam's

sows money seeds what do you do there

you're investing your money you're

planting your money in the ground and

making that money grow out of the ground

so now over here your systems are making

money down here this is why these two

people are sad because you're you're

using your time to make money using your

time to make money you're making more

money but you have less time over here

you're using time to make money you have

neither money nor time over here you

have more money but you have no time to

enjoy it when you come up here now

you're finally making more money and you

have the time to enjoy it and then

ultimately when this takes over this

space now you've got your you've got so

much money coming in you've got all the

money you need and all the time to enjoy

it so what is the difference between the

psychology of rich people poor people

middle class people and i'm going to end

with this so

the pro poor people

have the psychology that makes them

think the primary purpose of money is to

pay

bills

and buy

stuff

right that's the primary purpose of

money pay bills and buy stuff so they'll

go out and they'll find a job that gives

them enough money to pay their bills and

to buy stuff

y'all track it so what happens if this

is what you think the purpose of money

is you will always be poor you're not

poor because of the job you have you got

the job you had because your psychology

was the psychology of poverty

okay so

middle class people

middle class people think the purpose of

money is to create

and maintain

maintain

i hope i spelled that right

good credit why so they can pay their

bills on time and buy stuff that they

can't really afford so that's wha so a

middle class person will get a job that

makes more money

so they can buy things on time and then

pay off

today's junk with tomorrow's money right

that's the

that's the

psychology of middle class people

rich people believe that the primary

we're talking about primary when we talk

about psychology i'm talking about the

psychology between what you believe is

the primary

purpose

of

money so i want you to think about just

for a minute now while you're watching

this video think about how you think

about money when you think about money

do you think about all the stuff you got

to pay for and there's never enough

money

that's because you only decided to

figure out how to make enough money to

pay for the stuff you buy right

so

rich people believe the psychology of

rich people when it comes to the purpose

of money rich people believe the primary

purpose of money is to turn

it

into

watch this now more

money

so the first thing you do when you get a

dollar is you pay your electric bill

your water bill your mortgage payment

your car insurance your college loans

you buy food you pay your utilities you

take yourself to the movies or you take

you and your family to the movies or out

to dinner and you spent this money

because you gave yourself a temporary

temporary relief of the pain of being

broke

right

or you go out your car it has 36

thousand miles on it oh my goodness it's

so high mileage i got to go get a new

car and you really want a new car

because you're bored with your old car

right but the reality is all you have to

do is think about it from a different

perspective so you make enough money you

go buy the stuff you pay the bills

you maintain good credit you got you got

your your 750 credit score your 850

credit score and you're excited because

now i can go buy anything i want even

though i can't afford it

but when you really get it when it

really begins to make sense to you what

you're going to do is every time you get

a dollar you're gonna say how can i take

this dollar and turn it into two how can

i take this dollar and turn it into ten

how can i take this dollar and turn it

into twenty how can i take this dollar

and turn it into thirty or a hundred or

five hundred dollars because when i can

take this dollar and turn it into more

dollars in my book from the trashman to

the cash man i call that

holding on to your money long enough for

it to get pregnant and have babies you

never spend the mama money you only

spend the baby money that's what rich

people think about how can i turn this

money into more money

now here's the

the final thing i'm gonna say is this

the other thing is

middle-class people and poor people are

afraid to take their money and invest in

something that's gonna make more money

because rich people i mean middle-class

people and poor people these people want

to guarantee

they want a guarantee

right

but rich people want an opportunity

so if you become the kind of person who

seeks opportunities over guarantees

and your primary purpose for money is to

turn it into more money then every time

you get money you're going to be looking

for a way to turn it into more money and

congratulations you've developed the

psychology of rich

of rich folks

hope that helps like the comment like

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help the people you know if you think

this information will be helpful for

them hope it helped dr myron golden

signing out bye for now