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I became interested in Steve Siebold’s new book, How Rich People Think, as soon as I heard its name. Books about what to DO to become wealthy are commonplace, but books about how to THINK about wealth are both rare and critically important.
Perhaps that’s why some of the best books about wealth ever written – like Think and Grow Rich and The Richest Man in Babylon – center around how rich people think, not the nitty-gritty of what they do.
Siebold’s book is structured as 100 short chapters, each about two pages long, which makes it easy to read in small bites. You don’t need to read it in a linear fashion; feel free to skip around.
So how do rich people think? Here are some of Siebold’s examples:
The middle class sees money through the eyes of emotion. The world class sees money through the eyes of logic.
“Most people never accumulate much money due to a series of self-limiting beliefs … fueled by negative emotion.”
The middle class plays it safe. The world class takes calculated risks.
“One group stays awake worrying about losing what they have, while the other can’t sleep because they’re dreaming of what’s possible.”
The middle class believes building wealth is a solitary effort. The world class believes it’s a team effort.
“The average person … (is) paid for the result of their individual effort … The rich see themselves as team leaders.”
The middle class believes ambition is a sin. The world class believes ambition is a virtue.
“Remove the profit motive from the equation, and you take away the incentive for world-class thinkers to direct their mental energy towards (solving) major challenges in society … the average person knows this, but labeling the rich as sinners … absolves them from having to make the effort to become wealthy.”
The middle class believes they must choose between a great family life or being rich. The world class knows you can have it all.
“Figure out how to be more efficient with your time, so you have plenty to spend.”
The middle class sets their financial expectations low so they’re never disappointed. The world class sets their financial expectations high so they’re always excited.
“No one would ever strike it rich and live their dreams without huge expectations. Ancient wisdom says you get what you expect.”
Should I Read It?
Afford Anything readers already know these ideas. You know that aspiring to be wealthy is a virtue. You know that you should set huge expectations, and reach for them again and again, until you get them. If you didn’t know that, you wouldn’t be reading this site.
But unless you’re very fortunate, you’ll encounter people daily who question those beliefs. People will tell you that you’re crazy for doing what you do, for taking the calculated risks that you take, and for holding the values that you have.
This book, in my opinion, can serve as reminder during those tough times. It can help you stick to your ideals when the people around you question or criticize your decisions and goals.
This Book is For You If: You want a big-picture reminder about developing a wealthy worldview.
This Book is NOT For You If: You’re looking for specific, how-to instructions about executing a course of action (e.g., “How to start a business” or “How to invest in real estate.”)
Check out more reviews of How Rich People Think here.
Thanks to the Carnival of Personal Finance and the Carnival of Wealth for showcasing this blog last week.
Out of curiosity (and this is in no means meant as a snipe), how often is Ayn Rand or her tenets mentioned in the book?
@CMonster — Ayn Rand is never mentioned by name within any of the chapters, although the author does include a quote from a famous person within each chapter, and the author also gives a book recommendation at the end of each chapter (totaling 100 book recommendations and 100 famous quotes). She’s included in that, but you can easily gloss over it, since that’s not incorporated into the main-body content.
As an aside, I just came across your blog via Leo.
Very glad to have found it and RSSed you. Good stuff, am enjoying reading your past posts.
This is a nice review which have expressed the main theme of this book. This book is very inspiring to people. So, i want to read this book. Thanks for this review.
I think, This book is for me to read! I have already read a book by Robert Kiyosaki, named Rich Dad Poor Dad and I liked it truely. from you review here, I can figure out that both are conceptually same and focuses on developing whole together a different mind set to become wealthy because I also believe that, to become wealthy we have to come out of our poor thinking and mind set. Anyway,.. thanks to take this book to my notice. Will read it.
@Mihir — This book reminded me of Rich Dad, Poor Dad a lot! It’s written in a different format (100 short chapters), while Rich Dad, Poor Dad is written in traditional book form. But the content is very similar … the two authors share a similar mindset!
The Millionaire Mind touched on this topic as well although it tended to lean more towards data collection on millionaires than their attitudes toward money. Have you also read The Millionaire Mind and if so how does this book compare in making the case for how important it is to think about money correctly? Right now TMM is still my fallback recommendation for people who wonder how their neighbors get rich but they don’t…that is if they won’t just listen to me in the first place.
@Dave — The first two books on building wealth that I ever read were The Millionaire Mind and The Millionaire Next Door! I think, as you say, that The Millionaire Mind (and Millionaire Next Door) are both more data-driven and rooted in study/analysis, while this book is more concepts and ideas (not backed by any cited studies).
In that regard, this book reminded me of Rich Dad, Poor Dad, which was also about cultivating a mindset but didn’t cite data/studies.
Sounds like an interesting read. While “how to” guides and practical tips are certainly valuable, I also find it helpful to get inside the mind of the truly wealthy. Small changes to your mindset can have a big impact as you start to see the world differently and recognize opportunities that you wouldn’t have noticed before.
@Mike — Absolutely. I think that changing my mindset was the most important step I ever took towards my current wealth-building lifestyle. Trying to grow net worth, without having the right mentality, is a little bit like trying to build a house without a blueprint.