The rich buys wealth while the poor buys liability

[Kelward]

If a poor person that has a poor mentality suddenly owns a lot of money maybe through inheritance or hitting the jackpot, they will misuse the money. But if a poor person that has a rich mentality suddenly owns a lot of money they will diligently research and invest the money in a profitable business or investment. From their profits they can gradually afford to buy the things that they've always dreamed of and their assets will be yielding more profits.

I agree with you on all of this part you explained because it tells how a lot of people who are poor react to sudden money that comes to there way because some persons will be looking for an expensive things to buy and going to places they would lavish money, there are also people who would be using the medium to compete with people who had more than them before. Perhaps that's why there are people you can give everything but after sometime they would be Left with nothing because of poor mentality of good handling of money.

Most poor people have the dream of living like the rich people, they want all the lavish things that rich people enjoy but they don't about how to make the money. If by any chance they come into huge amounts of money their priority will be to own some of the luxury lifestyles of the rich. But the problem is that they cannot sustain the lifestyle and they will end up selling off the material things that they bought at cheaper rate and end up poor again. It's only a poor person that has the mindset of the rich that can forgo all the things that they desire like a nice car, beautiful house and designer items to invest the money or use it to start a profitable business. The business and investment will continue to give them profits to buy what they desire.

[AbuBhakar]

If a poor person that has a poor mentality suddenly owns a lot of money maybe through inheritance or hitting the jackpot, they will misuse the money. But if a poor person that has a rich mentality suddenly owns a lot of money they will diligently research and invest the money in a profitable business or investment. From their profits they can gradually afford to buy the things that they've always dreamed of and their assets will be yielding more profits. To become rich you need to think like the rich even you're not there yet, many rich people where not born rich, they were value driven.

It just depend on the individual's mindset not whether they're rich or poor. A rich person can still mishandle money like those that are born in a family of wealthy people, there are some of them that spend money like their wealth is endless. While a rich person who experience struggle will make use of his money wisely and invest it to generate more income.

While on the other side, a poor person with rich mindset believes in delayed gratification. Even if they already struggle in their life, they are willing to endure more challenges for the sake of their future. While a poor person with poor mindset practices YOLO that a little blessing they get, they splurge it for temporary happiness which makes them to stay forever on their financial status.

[Obulis]

If you ask what the difference is between the rich and poor, the overwhelming response will be MONEY, this is true but it goes deeper, a major factor is also their mindsets. The rich creates wealth but the poor doesn't, most poor people don't think outside their comfort zones. Rich people invests their money and from the profits they can buy whatever they desire but the poor buys liabilities that depreciates. Rich people builds wealth and it continues to generate money for them, they keep reinvesting and diversifying their income to generate more wealth. But if you give most poor people huge amounts of money, instead of investing it in a profitable investment like Bitcoin they will use the money to buy material things that they have been dreaming of like a car or buying that room size TV that they have been dreaming to own.

If a poor person that has a poor mentality suddenly owns a lot of money maybe through inheritance or hitting the jackpot, they will misuse the money. But if a poor person that has a rich mentality suddenly owns a lot of money they will diligently research and invest the money in a profitable business or investment. From their profits they can gradually afford to buy the things that they've always dreamed of and their assets will be yielding more profits. To become rich you need to think like the rich even you're not there yet, many rich people where not born rich, they were value driven.

From OPs point of view, it is very clear that money happens inside first before outside. That's why the difference between two poor people who finally got golden chances. One will tend to keep up with these gold even if not as large as it came but time has much to say. As for the other person, it is time that finally says it all also. They keep withdrawing on decomposables all times without replaceables.

As the case is, seeing money to be the differences between the rich and the poor is a dead perception and a staggering now baseless conception. The same conception has revealed that some who are said to be rich are rich (has money) because of the privilege they have and nothing else. That is why you will see some who handled a high office but has nothing to live a comfortable life after few months or years in that office.

On this, it is obvious that one is rich  (inside) before being rich (outside). So that money (seen) is not really the difference between the rich and the poor but mindsets (which defines responses or attitudes to life).
There are many factors to money making definitely (controllables and uncontrollables).
Therefore:
This didn't in any way handle money making completely but is pointing to an invaluable aspect of the process.

Well done OP for this great insight!!

[Wakate]

If a poor person that has a poor mentality suddenly owns a lot of money maybe through inheritance or hitting the jackpot, they will misuse the money. But if a poor person that has a rich mentality suddenly owns a lot of money they will diligently research and invest the money in a profitable business or investment. From their profits they can gradually afford to buy the things that they've always dreamed of and their assets will be yielding more profits. To become rich you need to think like the rich even you're not there yet, many rich people where not born rich, they were value driven.

It just depend on the individual's mindset not whether they're rich or poor. A rich person can still mishandle money like those that are born in a family of wealthy people, there are some of them that spend money like their wealth is endless. While a rich person who experience struggle will make use of his money wisely and invest it to generate more income.

While on the other side, a poor person with rich mindset believes in delayed gratification. Even if they already struggle in their life, they are willing to endure more challenges for the sake of their future. While a poor person with poor mindset practices YOLO that a little blessing they get, they splurge it for temporary happiness which makes them to stay forever on their financial status.

I think op is very wrong, the idea that every poor person uses their money for liability is wrong and it's never accepted. There are even rich people that like spending more than they earned and this is due to the fact that most of these people do not actually hustle to make there money. Many of these people are spending from inherited funds from their parents or family.

The idea of extravagant expenditures should not be limited to poor people. There are people that are working very hard just to earn something to feed their families and take care of their needs. Some have not gotten the opportunity that will brightened their hustles to become rich as fast as possible. We should not see poor people as results of not working hard or not having a good savings to invest in something that will make them more money.

[milewilda]

If you ask what the difference is between the rich and poor, the overwhelming response will be MONEY, this is true but it goes deeper, a major factor is also their mindsets. The rich creates wealth but the poor doesn't, most poor people don't think outside their comfort zones. Rich people invests their money and from the profits they can buy whatever they desire but the poor buys liabilities that depreciates. Rich people builds wealth and it continues to generate money for them, they keep reinvesting and diversifying their income to generate more wealth. But if you give most poor people huge amounts of money, instead of investing it in a profitable investment like Bitcoin they will use the money to buy material things that they have been dreaming of like a car or buying that room size TV that they have been dreaming to own.

If a poor person that has a poor mentality suddenly owns a lot of money maybe through inheritance or hitting the jackpot, they will misuse the money. But if a poor person that has a rich mentality suddenly owns a lot of money they will diligently research and invest the money in a profitable business or investment. From their profits they can gradually afford to buy the things that they've always dreamed of and their assets will be yielding more profits. To become rich you need to think like the rich even you're not there yet, many rich people where not born rich, they were value driven.

On the moment that you wont be deciding to get out with your comfort zone, then there's no way that you can be able to achieve success and this is something that you do really need up to consider if you do have plans on having that progressive life or trying out to achieve success, on which of course its not that guaranteed but at least you have done something on which it will be that giving out the probability or chance for it to happen. The only thing that you must consider is that success isnt something that could happen overnight or with just that a few effort that you do able to put in. It will be taking up that time and tons of trial and error before you can be able to achieve it out. Mentality and perspective are the main differences in between two and if poor people will be just that changing on how they do think then they can make out such changes if they do want. On the moment that we are speaking about buying wealth and buying liability then it will be different to each other on which people will be having that different mentality when it comes to this. Im not saying that poor people do buy liability but this is mostly true because despite of being poor or having not much money on which they do prefer on putting up some focus like on buying cars, gadgets or even into those things on which it doesnt bring out any income but rather they would be that needing or adding up some expenses unlike into those people who do have that kind of mindset on which trying out to expand out their business or having investment just because they do want to have that another source of income on which we do know its the best approach to have. You are securing your future with having that tons of possible options rather than on relying into your single income source which is your day job. Fund management is crucial and if you do want to have that financial freedom then of course you do need to work hard of it and made out some decisions trying out to improve your way of living in terms of financial aspect. Sacrifices should be made like time and effort for the greater good because if you are just that thinking on temporal basis or short term then it wont be lasting up that so long. You do made out some realizations but its already too late.

[Darker45]

This is so true. I'm a witness to this, but perhaps it isn't as simple as differences in individual mindset. As far as my observation is concerned, this is much deeper. It's probably even cultural.

In my country, it seems people are conditioned to be mere workers. It seems it runs deep in their consciousness to just follow orders from a boss. There seems to be a culture of servitude. Perhaps it's a factor that for centuries they're being ruled by powerful colonizers. They've probably accepted their fate at some point and it eventually formed part of their DNA.

In contrast, Chinese people here are entrepreneurs. They don't work for others. They will start a business, however humble it may be. They don't spend much on liabilities. They live below their means. Much of their money go into their business. No wonder why after two or three generations their businesses have already grown big.

[Muba20]

If we observe the rich and the poor closely, several things become apparent. For example, a rich person struggles a lot in the beginning, especially despite having money, he tries to invest without spending it. Instead of taking the profit earned from the investment, he tries to reinvest that profit. As a result of such efforts, his income increases rapidly and he can buy more and more assets. On the other hand, the tendency of the poor is somewhat different. They do not give much priority to the future, they give importance to the present. That is why most of the time they are more busy with their enjoyment. They do not think about the future. That is why their wealth does not increase, but the wealth acquired decreases.

[Uruhara]

Mindset, self-discipline, insight and also environmental or social conditions always play an important role in whether someone can have the mindset of a rich person or not. A good mindset is actually always born from the increasing number of useful insights that are absorbed or obtained. Increased insight can be through diligent study or it can also be from socializing with rich people who can help us better understand their mindset.

And usually having a poor mindset is caused by a person's lack of insight. Or because he has an environment that influences him not to be able to think like rich people. And yes, there are lots of people who are now very rich even though they used to be poor. Usually those who succeed in becoming rich are those who work hard and study hard and are good at finding relationships or hanging out with the right people.

[₿itcoin]

To become rich you need to think like the rich even you're not there yet, many rich people where not born rich, they were value driven.

Yeah, it's not all about income, the mindset of your capital allocation is the main fuel behind wealth. People who have a strong personality and mindset view their problems as opportunities, and by investing money, they overall come out with profit.
You could read Rich Dad Poor Dad or The Millionaire Next Door to get a better understanding about mindset and disciplined financial choices, I couldn't remember the writer's name correctly atm. If you scared to invest such a type of mindset prevents you from thinking in the long term and you will failed to take liabilities like hodler.

[Alpha Marine]

As much as I understand what you mean, life is not black and white, the way you paint it. Reality is different.
The rich person has the luxury of thinking about the future and doesn't need anything, the poor person is just trying to make it to next Friday and doesn't even know if he will get a 3 square meal the next day.
The rich person doesn't need anything; he already has everything he needs. He has a home, he has a car, he has food, he has money to take care of his kids, the poor man may not even have money for the next month's rent, so whatever money he's working for will be for that.

I'm not saying a person can't be poor and work on being rich, I'm saying be realistic when you judge people. Realities are different. A lot of people are working hard and they have big dreams and are working towards them, but they may not have gotten the opportunity.
When all the money you earn for a month goes to the bills of the next month, it is pretty difficult for you to have an investment that will make you rich.

[ndutndut]

The mindset has always been the problem for people who are poor, even when they get the opportunity to rise above their financial level. Becoming rich starts with the development of the mindset, because one needs to be productive in thinking. If this mindset is not present, no matter the amount of money given to someone who is poor, it will be squandered on unnecessary things. Becoming rich comes from the mind and how to create revenue from money.

In addition to mindset, another difference is about mentality. It is the mentality of poor people that makes them truly poor. Actually, being rich is not only about money but about attitude, usually people with a poor mentality are more afraid of losing prestige than losing opportunities. They are more busy looking rich than learning how to be rich, this is a fact.

Buying things not because they need them, but to look luxurious and cool. They also refuse to work hard for various reasons, even though their lives are difficult. Worse still, they do not learn from their mistakes and do not want to listen to financial advice from others, they tend to be indifferent and want instant wealth. A bad mentality and mindset are not destiny, because they can change. However, if changed, it can become destiny.

This is different from people who are mentally rich and have a mindset to be rich. Their mindset always focuses on skills, continues to look for opportunities, has good financial management about what to buy and what not to buy, and focuses on the future. Their goals are clear, and they continue to fight to achieve their goals. In addition, they also dare to take risks, and always see challenges as opportunities.

[Fiasem20]

To become rich you need to think like the rich even you're not there yet, many rich people where not born rich, they were value driven.

Poor people are always driven by luxurious things,most cases they have all it takes to start up an investment or something profitable but the desire they have for luxurious things won't let the think out of the box.A rich person have a creative mindset to buy wealth while the poor don't.But not all rich people have the mindset to buy wealth,most of them spend lavishly without thinking about the future.Although my friend isn't poor and is an average person in society,he tends to spend lavishly on luxuries without hesitation.Despite my advice,he hasn't changed,likely due to his limited financial mindset.Just like the Op said for you to become rich you need to start thinking like a rich man,if possible think outside the box.

[Antotena]

If a poor person that has a poor mentality suddenly owns a lot of money maybe through inheritance or hitting the jackpot, they will misuse the money. But if a poor person that has a rich mentality suddenly owns a lot of money they will diligently research and invest the money in a profitable business or investment. From their profits they can gradually afford to buy the things that they've always dreamed of and their assets will be yielding more profits. To become rich you need to think like the rich even you're not there yet, many rich people where not born rich, they were value driven.

Let's poor people be what they are, if they are not disturbing or looking for any financial assistant from you, they are what they are and will make their decision, if it work for them that's fine and if it doesn't it's their responsibility to handle the consequences of their actions. Some people that are poor on realizing money don't do investment, not because they don't want to, it's because there is no proper orientation when ttungs are been thought.

No matter the amount given to a poor person, if he or she lack financial wisdom and someone that has more bills pike for him will not waste their time trying to make investments. I know a guy that was in money back then but along the way, the father died and immediately the son took over but the business didn't last upto a year before everything collapsed, he doesn't have what it takes to build a successful business, this goes to everybody and not just poor people alone.

[Alphakilo]

If you ask what the difference is between the rich and poor, the overwhelming response will be MONEY, this is true but it goes deeper, a major factor is also their mindsets. The rich creates wealth but the poor doesn't, most poor people don't think outside their comfort zones. Rich people invests their money and from the profits they can buy whatever they desire but the poor buys liabilities that depreciates. Rich people builds wealth and it continues to generate money for them, they keep reinvesting and diversifying their income to generate more wealth. But if you give most poor people huge amounts of money, instead of investing it in a profitable investment like Bitcoin they will use the money to buy material things that they have been dreaming of like a car or buying that room size TV that they have been dreaming to own.

If a poor person that has a poor mentality suddenly owns a lot of money maybe through inheritance or hitting the jackpot, they will misuse the money. But if a poor person that has a rich mentality suddenly owns a lot of money they will diligently research and invest the money in a profitable business or investment. From their profits they can gradually afford to buy the things that they've always dreamed of and their assets will be yielding more profits. To become rich you need to think like the rich even you're not there yet, many rich people where not born rich, they were value driven.

I think that it all depends on individuals' mindsets. Those that have a short-term mindset always see money as something to spend that is why they focus on buying flashy things like cars and living in an expensive apartment just to look like the rich when they get any money. These sets of people will not become rich because they're only thinking of the present. They're not thinking about the future.

However, the ones that want to live within their level see money as something they should use for investment. That is why people in this category will think of how to build their own house instead of living in an expensive location and paying high rent. This can help them to stop paying rent, and they can even use the house as a rental apartment too. That way they're already investing, and this will help them become rich because they already have an investment.

[Japinat]

That’s why there are distinctions between rich and poor, because their mindset also varied. The rich people will become even richer because they are focused on accumulating wealth, while those poor people do not have chances to get rich because they stick with liabilities rather than prioritizing wealth acquisition.

However, there are also poor individuals who have made their way to get rich, and those are who imitate how those rich people think rather than adopting the mindset of the poor ones.

[Botnake]

We can’t blame the poor people if they buy liability more than acquiring wealth, because they live a life of poverty and scarcity, so once they are given chances to own a huge amount of funds, they will prioritize buying those things that they haven’t experienced yet, and once they’re satisfied with it, that’s the time that they will prefer to save and invest their money, more than spending them.

Now, the problem is, people have no satisfaction in nature. So these poor individuals will find it hard to transform into becoming rich in the future.

[rachael9385]

If you ask what the difference is between the rich and poor, the overwhelming response will be MONEY, this is true but it goes deeper, a major factor is also their mindsets. The rich creates wealth but the poor doesn't, most poor people don't think outside their comfort zones. Rich people invests their money and from the profits they can buy whatever they desire but the poor buys liabilities that depreciates. Rich people builds wealth and it continues to generate money for them, they keep reinvesting and diversifying their income to generate more wealth. But if you give most poor people huge amounts of money, instead of investing it in a profitable investment like Bitcoin they will use the money to buy material things that they have been dreaming of like a car or buying that room size TV that they have been dreaming to own.

If a poor person that has a poor mentality suddenly owns a lot of money maybe through inheritance or hitting the jackpot, they will misuse the money. But if a poor person that has a rich mentality suddenly owns a lot of money they will diligently research and invest the money in a profitable business or investment. From their profits they can gradually afford to buy the things that they've always dreamed of and their assets will be yielding more profits. To become rich you need to think like the rich even you're not there yet, many rich people where not born rich, they were value driven.

The reason why they say poverty is a state of mind is because you can give a rich man 10 thousand dollars and within a few months he can create something substantial that gives him income but a poor man would rather get a car, new phone, jewelry and other flashy things that won't really make him rich. Someone that has a poor mindset only chases temporary pleasure, they are not interested in the future

[Dogedegen]

It is actually sad in a way, you can see how many people are buying expensive cars using credit. Cars are in most cases a liability and adding a liability to purchase one is a double loss. An expensive car is a big liability as it loses value faster and repairs cost a lot more.

We can’t blame the poor people if they buy liability more than acquiring wealth, because they live a life of poverty and scarcity, so once they are given chances to own a huge amount of funds, they will prioritize buying those things that they haven’t experienced yet, and once they’re satisfied with it, that’s the time that they will prefer to save and invest their money, more than spending them.

Now, the problem is, people have no satisfaction in nature. So these poor individuals will find it hard to transform into becoming rich in the future.

They are making choices, nobody is forcing them. They are making bad choices, and because of that you can blame them.

[2Pizza410000BTC]

I completely agree with what you said here because if the poor are given a lot of money or win a jackpot, then the poor will not be able to evaluate that money, they will use it in different ways and eventually spend it. Something will always come to their mind that everything will cost a lot of money. But if a rich person wins a jackpot or is given a lot of money, then he will definitely think how to get money out of it or how to increase his money, he will not waste his money unnecessarily. However, poor people who have intelligence and knowledge may evaluate money and invest something and think of increasing his money from there, but all these thoughts may be in 20 to 30% of the poor people. For example, if I am very poor and if I win the jackpot, I will definitely invest and increase my money from there, with that money, later I will take my family towards development, before that I will not give TV, refrigerator, house etc. for my family, I will definitely provide all these things with the money that has increased from my money.

[DaNNy001]

I read an article describing how the rich and poor man thinks.. before the write there was a pictorial drawing showing the clothes the rich and poor man had on...the rich guy had a simple tshirt and trouser while the poor man had a lot of diamond watches and necklaces both the rich one had more value in net worth but he wasn't spending on liabilities like the poor man, having an investment is something you won't regret