Why You're Still Poor... | Mindset of the Rich

hey guys it's kent and in this video i'm going to walk you through some of the things some of the mindset changes that i had to do as a young man growing up as you guys know we all have the same dreams it doesn't matter who you are where you are and what is it that changes people's mindsets from having better relationships better health and better wealth so as a young kid i was happy but my parents they had come out of that great depression era because of their parents head too and so when my mom would say we can't afford this she was right we couldn't there were lots of things that we didn't have but as a family we were happy but i still had to punch through the different barriers that were in my mind based on the biases the beliefs and the thoughts that i had gotten from my own family before i get started i do want to say one thing money itself will not solve your problems it will not give you a better attitude it will not change your mindset it will not do anything for any relationship other than actually make more stress on it hey guys there's going to be a lot of information in this video so to make it easier on you we've summarized them into show notes just click the link below in the description to grab them also as always don't forget to like subscribe and hit the notification bell so you don't miss any of my future videos if you want to help support the channel check out my premium membership on my website where you can learn all about my real estate investing strategies you can get 50 off an annual subscription with a promo code premium 50. thanks so much guys i really appreciate it okay so let's jump right in so let me just start off by saying that i think that most people are either in a growth mindset or in a fixed mindset now obviously you guys know the difference but from my experience what i found is a lot of people that are sitting here in a fixed mindset actually see themselves over here in a growth mindset and the other way around and so i think the best thing that you could ever do is to ask people what they think of you because the very best thing that you could ever get is somebody's objective opinion on where they believe that you're at and please try not to get so defensive so now let's just take a look at the words you use and the thoughts you have based on these two things so in a growth mindset failure is an opportunity to grow and we talk a lot about this we talk a lot about fast failing you know fail as fast as you can our failure is part of experience failure is a part of growth but over here failure is the limit of my abilities and what i found is a lot of time on the fixed mindset people don't even take that next step for whatever reason they're afraid to make a mistake or they're over analyzing everything so they don't even make a move on the growth mindset people say i can learn to do anything i want on the fixed mindset they say i'm either good at it or i'm not in other words they take a position and a lot of times it's kind of a defeatist attitude and i'm telling you over here i am horrible at lots of stuff but i plow through it some stuff comes to me very very easily other stuff not so much like i'm still struggling how to learn just to play the guitar but i'm still pounding away at it and trust me in my head is this little voice says i'm either good at it or i'm not i'm always fighting over here but i'm still plowing through and i'm not going to give up on a growth mindset people say challenges help me to grow on a fixed mindset i don't like to be challenged and you know these people these are the ones when you say i don't know if i agree with that and they immediately get defensive over here what they do is ask a lot of questions over here they make a lot of statements it's a big big difference and the words you use can generally tell you where you sit when when you're in a normal conversation on a growth mindset they say my effort and my attitude determine my abilities a lot of people do not believe that their attitude is important i'm telling you your attitude is your altitude literally when you step away from negative consequences you have no idea how clear things can be over here you're gonna find people say that's the way the cookie crumbles or that's the way it is or potentially even that's god's plan and i'm not saying that it might not be god's plan but a lot of times they're dismissive as if somebody else is in charge of all this and that's kind of the point so the feedback over here on the growth side is constructive over here not so much on the growth mindset i'm inspired by the success of others over here oftentimes the feedback they look at it as criticism and they personalize it so it's a very different kind of mindset over here for example i'm like a sponge i want to know like did i do this well what can i do better we're always stopping in our own company and saying okay let's celebrate the wins and let's see what we can do better over here they don't particularly want to look at that there's no way you can be infinite over here with your health and your wealth and of course your relationships if you have a fixed mindset one of the things i always ask people is how's your relationship with your family how's your relationship with your mom and dad how's your relationship with your girlfriend your boyfriend your wife your spouse whoever it is how's your relationship with your kids and i will tell you it largely depends on you okay so now we're going to focus on the growth and the fixed mindset and how different it is from an investor standpoint and this is my own experience of listening to people watching people mentoring people coaching people interns that have come through my office and also of course sellers and buyers of all kinds of real estate deals on the growth mindset these are typically investors over here they're typically savers they don't want to look they save money they're more of a scarcity over here it's more of an abundance over here people with a growth mindset they're working hours for momentum they're working for some kind of a future over here they're doing hours for dollars it's a very different mindset over here they're looking at the big picture over here as robert kiyosaki would say money is just a claim on your time one of the things that i found in a growth mindset is people are always saying how can i help what can i do they're always open they're not afraid over here what's in it for me that's a big one so a lot of times they're when they do something they always want to know if i do this what do i get in return over here i found in a growth mindset that's not necessarily so much over here it's all internal in other words when something happens like a relationship issue let's say i have an argument with my son i take a look at my own personal responsibility over here they look outward so here it's inward and here it's outward it's a very very different way to look at it and i know this is a tough one for a lot of people because they like to point fingers a lot once i decided to go internal and look at my own responsibility things really opened up another point on the growth mindset is it's up to me so in other words i believe that i am responsible for everything in my life my relationships my health my wealth everything that i do even my time and i think that is the case for most people in a growth mindset over here nobody helps me they take the victim mentality over here this is a big one guys over here nobody helps me they don't appreciate what i do i can't go on vacation because my employer won't give me the time off or i haven't saved enough money because i'm not making enough money so whatever it is it's all on this side it's more of a fixed mindset over here what i found is people with a growth mindset they do quit which i actually found this to be interesting but they quit strategically in other words when i've had to quit stuff sometimes you got to say all right time to not do that anymore it's clearly not going to pay off because i'm a guy that likes to do lots of stuff and try lots of stuff and so a lot of times i have to quit strategically it could be a partnership could be something that i thought was going to work that didn't work whatever it is over here they quit early they give up they're like you know what this isn't for me i'm not that good at it people are going to see what i'm doing and they're not going to like it whatever it is all this little voice that goes on inside of your own head so i found that they quit early over here it's very much a team concept so and over here it's very much an individual so you're going to find like a lot of realtors are going to be in this individual category there's no one that can do it better than me everything has to go through me there they can't delegate over here on a growth mindset if you want to really become wealthy you have to leverage other people's time or human capital and so at mc companies as an example which is a company that we use to buy real estate we have 250 employees over here and of course it's a whole orchestra of people trying to make that move forward but it takes a team to be able to do a billion dollars with a real estate like we're doing over here there's no way i could have done that because at some point your cup is full and what happens is a lot of time people just won't go beyond that they'll stay at that size and the last big thing for the growth mindset is that this category these people on the growth mindset all they do is pepper with questions and over here it's i know they're statements they basically are the know-it-alls they basically have big egos over here you're gonna find people are most most of the time pretty humble and if they have big eagles over here they're still gonna stay small over here you're gonna find the bigger egos the fact that they need to know everything they need to be in control of everything they're going to stay small and they're just going to make statements and over here they're just going to pepper you with questions because what they want is to know what you know so let's tie this into a little rich dad here and as you guys probably have seen before you've probably seen this cash flow quadrant and the cash flow quadrant is esbi and so for those that don't know this is obviously from rich dad poor dad robert and kim kiyosaki and rich dad and you're going to see very different people in these quadrants so e stands for employee s stands for self-employed b stands for big business and i is for investment and what what we want you guys to do over time is we want a lot of people start as employees just like me but we want you to start here start your own business move it to a big business and then invest it so that you've got your cash flow and what you're going to find is that the majority of the people on this side of the quadrant are going to pay higher taxes you're going to pay 40 50 in taxes on the business and on the investment you can pay very low so what we're trying to do is get you to move to this side of the quadrant and a lot of reasons why you're on this side of the quadrant or a lot of people are on this side of the quadrant is because of the way that they think so as i was talking before a lot of times when you got to do it yourself s stands for self-employed s stands for superman s stands for i need to do it myself employees obviously work for someone else so generally an s could be like a a doctor or it could be somebody that makes a lot of money but they're paying a lot of tax and they're really not looking at this side of the quadrant maybe they're not an employee and maybe they make a lot of money they're paying a lot of money in tax and they're really really smart people so s stands for smart but they don't want to ask anybody for help i know hundreds of people in this category right here what we're trying to do guys is find out about as much as we can over here and bring it over here over here in the b and the i side that's where all the fun is that's where you're hiring other people to help you accomplish your goals this is where you actually get to use some of the tax laws that are out there to save money on your taxes this is where you get to use debt and equity and all the fun things that are available as you continue to grow your company start new companies scale the existing companies it's a lot more fun over here and my experience has been that in order for people to get over to the b and the i side they really really need to work hard on developing their mindset from a fixed to a growth mindset i know for sure myself i started as an e i started as a property manager making six hundred dollars a month and a one bedroom apartment and i was right here and the next thing that i wanted to do was start my own management company which i did and then i believed that i had to run everything through me and i stayed really small and then i started to partner i started to hire more better people and i started to grow to here and then i started to get the money i started to move down over here and when i started making money that's when i started to learn all the things that i could on this side of the quadrant as i started to go from a fixed mindset to a growth mindset so those of you non-believers that believe you could just hand money over to somebody like in the form of a stimulus payment or an unemployment check i'm telling you while some people definitely need that this is proof seventy percent of the lottery winners end up bankrupt i have a lot of friends that are athletes they end up bankrupt because when you just sprinkle money on the mindset that you already have which is a poor mindset then eventually you'll lose it so this is a mindset issue this is a growth mindset issue and a lot of times people have a fixed mindset issue around scarcity as opposed to abundance so let's just talk about the mindset of people that got a bunch of money in here and what they did and these are things that you should avoid number one they stopped working number two they gave away too much money number three they didn't consider taxes and number four they spent money like crazy because they didn't have any coming in they ran out eventually and that's part of the mindset that's part of the rich mindset there's nothing wrong with doing these things but you have to have cash flow coming in to support it learn from these mistakes guys i think one of the things that i talk about is be do have and i think what happens is a lot of people focus on have that's where they go and that's what these lottery winners that's what a lot of people do i understand it when you get a bunch of money you say i want to have these things but what you really need to do is you got to figure out who you want to be and the only way that you can figure out who you want to be is you got to analyze what do i need to do what do i need to do differently what do i need to do to have a growth mindset as opposed to a fixed mindset so it's not about what we have which is what happens a lot of times when people get money it's about what we need to do and then we turn in to who we want to be and then at that point you can be a coach you can be mentor and you can help other people like we're doing now today in this video so the big question is what do i do now so i understand that question and so of course we got to pull up gandhi and so what gandhi i love what he says here is you have to change your thoughts and of guys i know this is harder than it sounds i know this what he's saying and i fully believe this your beliefs become your thoughts and your beliefs guys are things that you grew up with there are things that people said to you they're things that you read there's things that a teacher told you all of those things are defined who you are and until you change some of your beliefs you will not change your thoughts your thoughts become the words that you use it's super easy to determine i can tell when people say something i can or i can't i will or i won't all of those things are pretty easy things to figure out your words become your actions your actions become your habits your habits become your values and your values of course become your destiny that's what we want here we want you guys to change your thoughts so that you can change your destiny and the only way to do that is to dig in deep take a look at whether you have a fixed mindset take a look at whether you have a poor mindset and take on that criticism if somebody gives you that that's a gift that you need to take a look at instead of discount it and pretend like it doesn't exist one last thing i'm just gonna give you five points of thing that i wrote down for you that i thought you might want to consider these are things from a rich mindset opm using debt and equity other people's money very very very important a lot of people save a lot of money nothing wrong with that but the system revolves around using other people's money number two create value for others as long as you take that position no matter what it is if you're gonna find a deal and bring it to somebody else and you're trying to get money you need to show them how you're creating value if you're looking for a job you need to show that employer you're looking how to create value if you're going to start a new business and you're trying to raise money for it you need to show the investor how you're going to create value very very important lesson you need to understand the tax and inflation implications on the bigger picture in other words there's a lot of people that get paid a lot of money that pay a lot of tax and there's other people that make a lot of money and pay very little in tax and it's up to you to understand the difference because tax will be your number one expense in your lifetime inflation of course is a big issue as you save more money it can erode your hard hard-earned savings cash flow versus capital gains we've talked a little bit about that there's a massive difference the wealthy focus here uh the short-term people focus here nothing wrong with capital gains but that's like bitcoin buy low sell high buy a stock low sell high flippers all that stuff they kind of hang out over here they're wealthy they're really really uber wealthy they have lots of cash flow coming in from multiple store sources and then i put study because that's something that i stopped doing after college this is really learning as opposed to studying it could be both but this could be from youtube this could be from books this could be from mentors it could be from coaches this could be from whatever but just always be honing your craft and trying to make yourself the best that you can so thanks for listening

Channel: Ken McElroy

Views: 55,457

Keywords: Business, Coaching, Earn Wealth, Entrepreneur, Entrepreneurship, Freedom, Get Wealthy, Hustle, Investing, Ken McElroy, Lifestyle Business, Personal Development, Real Estate, Real Estate Entrepreneur, Real Estate Investing, Rich Dad, Rich Dad Advisor, Self-Help, Success, mindset, why you are still poor

Id: N2UwT6gjFD0

Length: 19min 33sec (1173 seconds)

Published: Fri Apr 23 2021