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.