Wealthy people have much more in the bank account than average people. That part is obvious — it’s how they get there that’s less clear.
In his book “Secrets of the Millionaire Mind,” self-made millionaire T. Harv Eker sheds light on how the richest people separate themselves from the average Joe.
Their success boils down to specific choices they make on a daily basis that most of us fail to emulate, he writes, and these choices aren’t necessarily complicated — in fact, anyone can emulate the mindset of the world’s wealthiest people.
One major distinction between rich people and everybody else is the way they choose to get paid: Rich people choose to get paid based on results they produce, not how much time they work.
“Rich people usually own their own business in some form. They make their income from their profits,” Eker explains. “Rich people work on commission or percentages of revenue. Rich people choose stock options and profit sharing in lieu of higher salaries.”
Meanwhile, average people choose to get paid based on time — on a steady salary or hourly rate.
“There’s nothing wrong with getting a steady paycheck,” Eker writes. “Unless it interferes with your ability to earn what you’re worth. There’s the rub. It usually does.”
Of course, there’s a sense of security that comes with knowing exactly how much money will be flowing in each month, and an element of risk with owning a business or investing in stocks — but this security comes with a price, Eker emphasises: “The cost is wealth.”
“Living based in security is living based in fear,” he writes. “What you’re actually saying is ‘I’m afraid I won’t be able to earn enough based on my performance, so I’ll settle for earning just enough to survive or to be comfortable.’ … If you choose to get paid for your time, you are pretty much killing your chances for wealth.”
Eker shares two tips to start thinking and acting like a millionaire: Get paid on percentage — or work for yourself — and never put a ceiling on your income.
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