Well-known billionaires Bill Gates and Warren Buffett have been boon companions for almost three decades. They have been mentoring each other, sharing brilliant ideas, and pushing through humanitarian works together. If you want to succeed in life, a friendship such as this is what you should look for.
According to Buffett, “You will move in the direction of the people you associate with. So, it is important to associate yourself with people that are better than yourself. You want to associate with people who are the kind of person you want to be.”
Friendships can influence your life in several ways. And this is why it is important to find a friend who will guide you in the right direction. If you build camaraderie with people who are ambitious, generous, and goal-driven, you’re more likely to develop those good values to blossom into the kind of person they are.
Contrarily, if you spend more of your time with people who have no excellent values, ambition, and goals, it’s more probable that you would take the wrong path they are walking to, even if it does you no good.
“Some friends challenge you about the things you’re doing, and that level of intimacy is great. It’s really through Melinda and seeing other people I realized, okay, it’s really worth the investment to have those people as you are always there to help them and vice versa,” Gates stated.
The friends you choose should educate you about yourself and challenge you to be better in various aspects of your life. They motivate you when things get tough and celebrate every little milestone with you.
Every person craves a meaningful relationship. Children want recognition from parents, so they behave and do things aligned with their parents’ likes and dislikes. And when they grow up, the hunt for recognition shifts to friends and colleagues from school.
We tend to seek recognition and validation from the social circle we belong to, whether they are good or bad influences. Hence, teaching kids at a very young age to associate themselves with positive individuals wisely is essential.
The people you associate with every day shape the circumstances of your life. A study conducted with 177 self-made millionaires has shown that these rich people forge an intentional friendship with people they long to be. These people got away from human tendencies and learned how to associate themselves with people only with positive influences.
Rich people only connect themselves with individuals with good habits they can adapt. They identify people through their mindsets.
Difference Between Poor Mindset and Rich Mindset
Robert Kiyosaki’s book entitled Rich Dad, Poor Dad illustrated the difference between rich and poor mindsets. He used his biological father to represent poor dad and his friend’s father as the rich dad.
The rich dad is among the wealthiest entrepreneur in Hawaii despite not being able to finish eighth grade. On the other hand, the poor dad, who had his Doctor of Philosophy degree from Stanford, earns a lot but still struggles with his finances. Now, where did the poor dad go wrong? What is the difference between their mindsets?
While the poor work for money, the rich do not
Most of us are fostered to study hard, get a high-paying job, value stability (regular job) than independence (having business or any self-employed job), and spend money without a precise long-term plan, just like the poor dad.
However, no matter how high your salary is, or even if you become the highest-paid employee in your company, the wages you earn will never be enough if you make up your mind to work for money. Dangerous emotions like fear and greed overtake those who have a poor mindset.
The fear of not having enough money enfeeble the desire to take investment risks in life, and the greed materializes in the desire to get luxurious things money can buy breaks their banks.
The poor dad embodies people’s traditional outlook on work and money. On the contrary, rich people have this mindset of making money work for them. They let their money make more money through various types of investments. Thus, once their money makes enough, they won’t have to work anymore.
The rich buy assets, not liabilities
Although having a high-paying job gives some degree of stability, it doesn’t make people rich. Take a look at Forbes’ list of wealthiest, and you’ll see that none of them get to the top purely by salary. Hence, while most people work about 40 hours a week to buy things they want and save the excess conservatively, rich-minded individuals work for a salary and strive for financial independence.
Instead of aiming to have a bigger paycheck to buy expensive goods, the rich dad works to have more funds to add assets. These assets generate money on their own. It may be a stock investment, a business, or income-generating real estate.
People with a poor mindset spend more than what they can truly afford just to sustain the extravagant lifestyle they are comfortable with.
The rich align their emotions and habits
There is a big gap in thinking between people with a poor and rich mindset. The poor allows their emotions to subdue them. Often, they believe that there is no way out of the difficult situation they are in. On the other hand, the rich always look for a way to achieve their dreams. If there is no path, they create one.
Rich people nurture their emotional intelligence. They are positively tuned with their emotions, so they tend to work smarter and productive. According to Buffett, emotional intelligence is more valuable than IQ. It is responsible for about 80-95% of success. Although IQ plays a big role, it cannot make you a star. Your EQ can.
The poor get overwhelmed with unfavorable circumstances, while rich people capitalize more on opportunities.
The rich use the power of corporations and minimize taxes
Rich people will reach out to financial experts to get advice in order to protect their assets and reduce taxes. They earn income, spend some money on business activities and pay taxes according to the remaining amount. Poor people will get their salary, then pay tax and bills with almost nothing left.
Associating only with rich people is not always a form of discrimination. It isn’t about you being beyond their reach. It is about choosing people that could influence you for the better.
Forming a friendship with rich people doesn’t mean selecting people with a lot of money, but rather a rich mentality. Some started with no money at all, but because they had friends with whom they shared the same ideals and good traits, they were able to climb up the ladder.
