America has long been considered the land of opportunity. After all, American history is full of rags-to-riches stories. Take Oprah Winfrey, for example. She is just one of many millionaires who grew up poor.
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So the question arises whether making money from a small amount of money is a motivator to make a lot of money as an adult.
There is no denying that many children born into poverty never escape from it. But after three years of studying the rich and the poor, Tom Corey, author of Rich Habits, found that many self-made millionaires had poor upbringings. did.
“Ironically, my research shows that being poor actually gives you an advantage over being middle class or wealthy,” he says.
Find out what characteristics poor people have that help them get rich and achieve the American Dream.
Poor people are more willing to take risks
Corey found that 41% of the 177 self-made millionaires he surveyed grew up in poverty. “Yet somehow they managed to grow up and escape poverty,” he says.
One of the keys to their escape from poverty was their willingness to take risks to reach the top.
“When you grow up poor, you're forced to take risks in the pursuit of wealth,” Corey said. “So overcoming the fear of taking risks becomes a habit.”
However, they found that once the self-made millionaires studied became rich, they were less willing to take risks because they didn't want to lose their hard-earned wealth.
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Being poor creates a desire to change.
Growing up poor can certainly be difficult.
“Poverty can defeat you, and it can make you stronger,” Corey said.
For those who became self-made millionaires with his research, it made them stronger and motivated them to achieve more in life.
“Their desire to be successful and rich drove them to change,” he says.
They worked hard to learn what they needed to know to be successful. They then honed their skills to outperform their competitors and earn more money, Corey said.
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Even poor people can develop a good work ethic.
Growing up in a comfortable environment may discourage you from putting in the effort necessary to succeed, Corey said. On the other hand, if you grow up poor, you are forced to work hard because nothing is given to you on a silver platter.
The work ethic that poor people can develop can lead to success.
“If you can combine a hard work ethic with dreams and goals, it's a powerful combination,” Corey says.
Other research supports Corey's findings. Elena Botelho and Kim Powell, authors of The CEO Next Door: The 4 Behaviors That Transform Ordinary People into World-Class Leaders, found in their research that hard work is the key to getting to the top. I discovered something.
Poorer people are more comfortable with setbacks.
Anyone who grew up in a family where you were just trying to survive paycheck to paycheck knows setbacks all too well. In fact, it can be a big part of your life when you're poor.
“So when things go awry, as often happens in the pursuit of wealth, people who grew up in poverty don't raise the white flag and capitulate,” Corey said.
Rather, they view setbacks as normal and something that can be overcome.
Poor people are less afraid of failure
It is no exaggeration to say that no one wants to fail.
“If you fail at something, you could end up in a poor family,” Corey said.
But if you are too afraid of failure to take chances, you may never succeed.
One of the benefits of growing up poor, Corey said, is that you know it all too well and don't fear it as much as someone who grew up wealthy. As a result, you will be less afraid of failure. Doing so, he says, gives you the courage to take risks to succeed.
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poor people are used to making sacrifices
Growing up in a poor environment means not being able to afford things that are commonplace to wealthy people. In other words, poverty forces us to get used to living without, Corley said. However, this may favor the poor.
“The pursuit of wealth always requires sacrifice, sometimes over many years,” Corey says. “If you're used to making sacrifices, it's less painful and more bearable.”
Frugality is a habit of the poor
Rich people do not become rich by spending all the money they earn. In fact, billionaire Warren Buffett is known for living a frugal lifestyle and always looking for ways to save money.
Corey said frugality is a habit that can be learned from a young age because poor people have no choice but to watch their spending. That habit stays with you into adulthood, helping you hang on to the money you earn instead of spending it.
Poverty removes rose-tinted lenses
When you grow up poor, you see things through a different lens than people who are more affluent because you know how difficult life is, Corey said. This will help you see things as they really are and not be blinded by unrealistic optimism. As a result, you are grounded in reality, aware of potential pitfalls, and able to prepare for them.
“People who don't grow up in poverty can see things the way they want to and be blind to reality until it hits them,” Corey says. “And when that happens, there's always a surprise and you're not ready to deal with that reality.”
How to go from poor to rich
Growing up with nothing can motivate some people to become wealthy, but it does not guarantee that everyone will break the cycle of poverty. However, there are strategies that can help you build wealth.
First, you need the right mindset. If you think negatively about wealth and the wealthy, you are more likely to have a lower income. In other words, hating the rich will keep you poor.
So pinpoint any negative beliefs you have about money. You have to accept that it's okay to have money and stop telling yourself that you can't get ahead because you're poor.
Then create a vision of what you want in life and set goals to get there, spend time educating and improving yourself, network with successful people, how to make more money Start developing rich habits, such as always looking for.
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