In the process of working with my clients on personal financial planning and business planning for the past 10 years, I have learned that there is ONE distinctive difference between an average person and a wealthy person. A wealthy person tends to have a strong business mindset and sharp perception towards wealth.
Let me illustrate by a simple example.
1 + 1 = ?
Many people will know the answer is > 2, because it is called a multiplier effect or synergy.
How about 10 – 1 then?
Is the answer 9 or 11?
The answer given by most people is that it should be less than 10. Let’s say if we have 10 dollars and we spent 1 dollar, aren’t we left with 9 dollar in our wallet?
But the answer should be 11 or more, this is the most interesting part about what I read and learnt.
In the mind of a wealthy person, for every 1 dollar he spent, he expects some form of return from it, it means if he spent 1 dollar, that 1 dollar should give some return and bring back another 1 dollar to him.
To sum up,
For an average person:
10 dollars – 1 dollar (spent as in expenses) = 9 dollars (I have 1 dollar less in my wallet)
For a wealthy person:
10 dollars – 1 dollar (spent as in investment) = 11 dollars (1 have made 1 dollar more)
Coincidentally, I was reading a book about ancient wisdom on wealth. I came across this gentleman by the name of Mr. Elber Siqiety. Indeed, what is mentioned in the book is the mindset of many wealthy people today, resulting in 15% of the world population controlling 85% of the wealth of resources. My highest tribute to him for his profound vision on wealth mathematics.