The Millionaire Mindset- 100 Research Studies I Condensed

not knowing this information can keep you in a lower Financial State and learning this information can help Elevate you to the financial state that you're looking to achieve many psychologists argue that everything you need to become wealthy lives with inside of you and if you're not already familiar my name is Kimberly Mitchell and I have a master of science in clinical forensic psychology and on this channel we discuss finances with the addition of psychology for this video I have dived into well over a hundred research studies on a variety of things including emotions behavioral Finance socio-economic status and the effect that that has on the brain the difference in stress levels between the rich and the poor along with things such as the efficiency of spending between the different socio-economic statuses overall I've condensed the research studies into eight specific main points that I want to talk about today to help you gain a better understanding of emotions finance and the mindset around money especially the mindset of the rich versus the poor number 1 is a wealthy person is more likely to focus on opportunities while a person struggling financially is more likely to focus on risks it is proven that the wealthy person believes in him or herself with much more confidence and believes that they can achieve what they want to achieve therefore they don't mind taking risks on themselves whereas the poor may have a lower self-esteem and may find it difficult to bet on themselves due to this so poor people tend to shy away from opportunities because they focus on the risks and a poor person will typically stick to that which gives them very secure winnings because they're not able to take a small amount of loss now you can view this main point as two different things so you can take the poor individuals who are not willing to really give up much or go for much or take much risk because they don't have much to give they don't have much to lose so if they put out a little risk for them it can be perceived as a lot it can be a big deal a small risk for them can be either a light bill can be their rent can be the food that they eat versus for the rich it may seem like oh they're much better individuals you know they're willing to take those risks but the rich have more to lose so you can view it that way now you can also view it as the mindset of the person and what they're actually willing to go for in life so that definitely does play a factor in this first main point however I do want to make sure that we mention limits that the poor socio-economic status holds and how that plays a role in their willingness to take risks number two self-made millionaires tend to possess personality traits that are more emotionally stable open extroverted risk tolerant and conscientious than those of everyone else even among non-millionaires people who saw themselves as self-made or in other words have made their money on their own without significant help from other people shared many of those same personality traits now this finding is really interesting to me because it's giving you those core personality traits behind the self-made millionaire now of course those who are born into wealth that's a completely different story but for this research it was focusing on self-made millionaires self-made wealthy people and those core characteristic traits that really stood out number three is working Lower Class People score higher on measures of empathy and are more likely to help others in distress now this is obviously due to the working class being in a state in which they recognize the feelings behind those struggling versus being in a wealthier state the wealthy state of being may cause you to eventually forget the way of struggling and how that makes you feel therefore the thoughts of people struggling are not something that you're waking up and focusing on every day this specific research doesn't necessarily mean that all wealthy individuals are non-empathetic it just simply means that the poor lower class individuals score higher in terms of empathy number four is wealthy people spend a higher percentage of their income on sale savings retirement investing in education and poor people spend a higher percentage of their income on Transportation housing and utilities I don't want this to get confused is that the wealthy actually had more to spend on certain things they actually took the two incomes of the people who participated and they broke it down in the same way so it wasn't necessarily as if the wealthy had more therefore they could invest more it was broken down on the same level of terms so it was proven that the poor individuals were more likely to overspend on housing to overspend on vehicles and transportation to overspend on utilities and food and things like that number five is a rich person is much more likely to think long term and a poor person is much more likely to think short term in order to achieve any goal in a noteworthy goal you have to play the long game however if a person gives up easily or doesn't make a long-term plan it is significantly more likely they will remain in a lower financial status so this one is very basic and easy to understand it gives us a window into goal setting and what it takes to achieve certain things if you have perseverance it's more likely that you're going to achieve greater financial success it's more likely that you're going to achieve greater things in life than those who aren't willing to persevere than those who aren't diligent in their goals and in their life path so this gives us a window into those who are wealthy are able to set long-term goals and persevere possibly years before they obtain what it is they're looking to obtain number six is wealthy people are more likely to take risks Face Forward while the poor tend to stick to their comfort zone now this one is a big one because most people are wanting to stay in their comfort zone a lot of individuals I would say the majority of individuals love to stay in their comfort zone however there's a person percentage of individuals who enjoy going out of their comfort zone okay and then there's a percentage of individuals who are willing to go out of their comfort zone so that's the difference here number seven is it was founded that the rich and poor work equally as hard however the rich focus on investing their money while the poor focus on spending their money the research that I looked at actually showed the poor families in some instances work harder than the rich and this does make sense many times the poor get paid much less which in return forces them to work more the biggest difference here is what the two categories do with the money they receive so investing a portion of what you're working for makes a big difference of where you're standing in five to ten years from now and lastly number eight is wealthy people are more likely to be focused on Solutions while