Maybe you’re rich. Maybe you’re poor. Maybe you’ve experienced both at different points in your life.
There is no doubt the divide between the rich and the poor is only becoming bigger.
By the way…if you haven’t figured it out yet, being wealthy isn’t all about money.
So what’s the difference between the rich and the poor?
That’s the question that I was asked by Andy Hart when I was interviewed on his Maven Money Podcast.
Today’s episode is a recording of his interview with me where we discuss my book Rich Habits, Poor Habits that I wrote with Tom Corley.
I’m sure you’ll get a lot out of his probing questions of me as we talk about the difference between the rich and the poor mindset.
Highlights from my conversation with Andy Hart
- My background in property investment
- How COVID-19 caused a recession in Australia
- How COVID-19 has affected being a landlord in Australia
- Landlords can put mortgage payments on hold for awhile
- Tenants can seek rental relief
- How poor money habits keep people in the rat race
- What differentiates the rich from the average person
- The rich have learned to spend less than they earn
- They understand the concept of delayed gratification
- The know the difference between assets and liabilities
- The five levels of wealth
- Level 0 – Financial instability: not even on the hierarchy, no reserves
- Level 1 – Financial stability: The most basic level of wealth. Some savings, insurance, can handle an unexpected challenge as long as it doesn’t last too long
- Level 2 – Financial security: Accumulated enough passive income to cover the most basic expenses, can maintain a basic lifestyle if you stop working
- Level 3 – Financial freedom: Accumulated enough assets to create enough passive income to pay for the lifestyle you want, more than just the basics
- Level 4 – Financial abundance: Financially free, can give back to the community, can train their kids to get to the next level
- Financial abundance means not just having enough wealth for you, but having generational wealth as well
- Whether we’re exiting the golden block of time for real estate wealth creation
- The wealth creation machine
- Why Rich Habits, Poor Habits is the book I’m most proud of
- Mistakes that crop up frequently in property investment
- How to handle a partner who isn’t interested in growing wealth
- The difference between being rich and being wealthy
Links and Resources:
Andy Hart – Maven Adviser
Some of our favourite quotes from the show:
“In my mind, if you don’t have the right mindset, and you suddenly come into money, you lose it.” –Michael Yardney
“The first thing is to invest in your financial education, because as we’ve said a couple of times, most people don’t even know about this.” — Michael Yardney
“You can’t drive around in a Lamborghini with the engine of a Hyundai in it, so you’ve got to upgrade your wealth operating system.” — Michael Yardney
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