If you want to get rich, you must abolish welfare mentality. Having a welfare mentality will keep you from taking calculated risks and giving your best effort.
Welfare mentality makes you depend on others to succeed. Welfare mentality is the opposite of having an abundance mindset where you firmly know you deserve to be rich!
Below is a passage that shows the difference between someone with welfare mentality versus someone with abundance mentality.
A guy looked at a Corvette the other day and said to me in a disapproving tone, “I wonder how many people could have been fed for the cost of that car?”
I replied, “I'm not sure. It fed a lot of families in Kentucky who built it. The Corvette fed the people who made the tires. The car fed the people who made the components. It fed the people who mined the copper. The Corvette fed the people who made the trucks that hauled the copper ore. The car fed someone who helped sell the car.”
That's the difference between having an abundance mentality and a welfare mentality. When you buy something, you put money in people's pockets and give them dignity for their skills.
Abolish Welfare Mentality If You Want To Get Rich
If you don't know by now, many people make or have A LOT more than you think. When you see people playing tennis in the park or lounging around at a cafe on a weekday afternoon, it's unlikely because they are unemployed. It's because they either don't need to work or have flexible business hours.
Every week I hear a new story about a person who makes or has way more than you'd ever expect. They make six figures a year doing regular jobs or jobs you might think are beneath you.
Here are some examples:
- Uber drivers who make more than their Uber corporate counterparts.
- A ~22 year old female art student from China who bought a $2.25M home for cash.
- The 26-year-old non-techie who landed a $250,000 pay package at Airbnb.
- 100,000+ millennials who expect a ~$1.1M inheritance.
- A University of New Hampshire librarian who left $4M to his school.
- A food blogger who makes $500,000+ a year.
- A Hawaiian entrepreneur who started a greasy spoon franchise and was selling his $8M house that only another entrepreneur could afford.
- A heavy haul truck driver said ,”I haul wind turbines, aircraft wings, engines. I made $847,689.23 so far this year. After taxes, fuel permits, and escorts, this year I take home $326,000 more or less.”
Know That Making Big Bucks Is Possible
The point of these posts is to highlight what's financially possible. Going to a good school to get a job in a traditionally lucrative field isn't the only way to make good money.
Just because you couldn't get into the greatest school on Earth, The College of William & Mary, doesn't mean your life is over. I'm joking because William & Mary is my alma mater and it isn't traditionally considered one of the elite schools in the country.
Too many people tell themselves they don't have the knowledge, skills, connections, background, or pedigree to get rich. Some even stunt their growth because they believe their race, gender, or sexual orientation puts them at a disadvantage. They need to abolish welfare mentality.
Heck, you could also attend Harvard University and still end up a nobody!
What a shame to think this way when we had a half-black president, plenty of first generation immigrant multi-millionaires, a gay CEO at Apple, a Black female mayor of San Francisco, and J-Lo!
Abolish welfare mentality and a scarcity mindset. Believe you deserve to be rich.
Six Figure Janitor Cleaning Up
Let's say you still don't believe you can be rich despite all my examples. How about this example of a Bay Area Rapid Transit janitor who made $235,000 in 2015 thanks to $165,000 in over time pay! Now imagine how much he's making in 2021!
To be a janitor, you don't need to go to college or vocational school. You don't need to be a certain race or sex either. All you've got to do is be willing to clean unsightly things. In other words, practically everybody can be a janitor, unless you're too proud.
Mr. Zhang actually grossed $271,243.02 in 2015 if you include his benefits. Over the last three years, Mr. Zhang received a combined $682,000 in pay and benefits over the last three years, averaging $227,000 a year.
What's great about this story is that Mr. Zhang didn't just accept his $58,750 base pay. He decided to take advantage of the BART overtime system and work harder. San Francisco has a monster $9.5 billion annual budget. We also passed an enormous $3.5 billion new proposition to improve the system. Why not get your honey money too?
“Almost every day of the year Mr. Zhang is cleaning our stations,” BART spokeswoman Alicia Trost said. “He is signing up for time that is also available to others — if he doesn’t take them, someone else will. Station cleanliness is a priority for us.”
Did you get that folks? Mr. Zhang wasn't a “privileged janitor” who got allocated more time than others. All he decided to do was out work his colleagues. Unlike some people who found Mr. Zhang's compensation outrageous, I say well done sir!
For those of you with similar or more “advantageous” backgrounds, there's no reason why you can't make as much as Mr. Zhang if you really want to. Mr. Zhang abolished welfare mentality and decided to keep on going. He made zero excuses.
Once you start regularly making six figures a year, the math to make over a million dollars a year becomes much clearer. You don't have to make seven figures a year, but you know you have the ability to if you really want to.
Traits To Adopt To Be Rich
If you want to be rich, not only do you need to abolish welfare mentality, you need to adopt these traits.
Develop A Strong Work ethic. 40 hours a week is an arbitrary amount of time to work. There are 168 hours in a week. If you worked just five hours more a week, think about how much more you could make or do with an extra 260 hours a year.
Mr. Zhang decided to work almost every day of the week for years! You might not have the same chance, but at least you can work on your side business during the weekends.
Desire. You’ve got to really desire to be free. If you’ve got a cushy job that pays you just enough not to leave, then you’re probably just going to stay put and surf Financial Samurai most of your working hours. Remove the complacency IV from your vein.
Risk taker. Put yourself out there. Rejection is just the name of the game when you are constantly taking risks. But if you’re never failing, then you aren’t trying hard enough. It takes effort to find optimal levels of happiness. Develop your X factor!
Open mind. Think about the many different ways there are to cook fish around the world. There are even more ways to make money and live a lifestyle you want. Read, watch, learn and participate to open your mind.
Humility. Don’t be so arrogant and presume that your way is the only way. Be humble enough to realize when you’re wrong. And when things start to click, be humble enough to remember when things went wrong. Things can change instantly.
Leverage. “Give me a lever long enough and a fulcrum on which to place it, and I shall move the world,” wrote Archimedes. An individual can only put in about 70 hours a week of before they start breaking down. Instead, leverage technology to reach more people. A website's quality remains constant 24/7.
Organizational discipline. Think about all those people who’ve made a ton and now wonder where it all went. Once you’ve got a solid handle on your money, you can invest your money in the most optimal ways possible. Tracking your finances through a free financial app is a no brainer.
Grit. I firmly believe too many people quit before things start getting good. The secret to your success is to have unwavering commitment for years. Financial Samurai had little growth and made hardly anything during the first year. 11 years later in 2020, Financial Samurai is an established personal finance site because I published 3X a week since 2009 without fail.
Believe In Yourself And Say No To Welfare Mentality
Thinking about creative ways to earn more is hard. It's why so few people offered their ideas when requested in “Get Rich By Predicting The Future.” But I promise you that it becomes easier building wealth the more you practice.
Take a look at this priceless piece of artwork below. It's called “Into The Night” by an artist that's been featured in many major media publications. Notice the intricate battle between light and dark.
It's a metaphor of our daily struggles where we're constantly trying to overcome our laziness and fears. If you let your eyes relax, you can see darkness winning the battle.
The painting is exquisite and would sell for over $100 million if Jackson Pollock created it.
A Masterpiece By A Novice
Alas, I created this painting when I was 26 on my now rental condo balcony. I used some leftover blue, white and black paint to get creative while waiting for the rooms to dry.
Then I created a yellow and black version. I then created another, and another, and another until I ran out of paint. Finally, I cut off my ear like Van Gogh! Just kidding.
Yes, my art might look like chicken scratch to you. But to me, they are beautiful because I never thought I'd be able to create any type of art at all until I tried. If I had kept practicing my art every week for 13 years, I'm sure I would have a portfolio of amazing work. No wonder why schools try to expose kids to everything just in case something sticks.
Keep On Creating And Believe You Deserve To Be Rich
Although I gave up art as a young lad, I didn't give up my creative writing because I believed in myself. Every week someone who doesn't write for a living tells me my writing sucks.
If it's not my writing they're criticizing, it's my website design. If it's not my website design, it's my intelligence. The body blows keep coming and I keep advancing. Thank goodness because being able to do something this fun in early retirement is truly a blessing.
Now that I've come up with a new bestselling book entitled, Buy This, Not That: How To Spend Your Way To Wealth And Freedom, there are more critiques who embrace a welfare mentality. Instead of embracing an abundance mentality to get rich, they focus on the negatives. What a shame!
I got rejected by every literary agent I contacted back in 2010 and 2011. So instead of waiting for permission from the gatekeepers, I decided to consistently publish three times a week on Financial Samurai instead. Then, at the end of 2019, I finally got an unsolicited inquiry from Portfolio Penguin, one of the best nonfiction imprints in the world to offer me a book deal. And now BTNT is a bestseller because I refused to quit. I believed!
If you find yourself chalking up someone's entire good fortune to luck or if you catch yourself criticizing another for their efforts, slap yourself in the face. Your welfare mentality is keeping you down. Mr. Zhang is out there hustling. So can you.
Move On From A Job You Dislike
If you want to leave a job you no longer enjoy, I recommend everybody negotiate a severance. If you negotiate a severance like I did back in 2012, you not only get a severance check, but potentially subsidized healthcare, deferred compensation, and worker training.
When you get laid off, you're also eligible for up to roughly 27 weeks of unemployment benefits. Having a financial runway is huge during your transition period.
Conversely, if you quit your job you get nothing. Check out the book, How To Engineer Your Layoff: Make A Small Fortune By Saying Goodbye. It's the only book of its kind that teaches you how to negotiate a severance. It was recently updated and expanded thanks to tremendous reader feedback and successful case studies.
Invest In Real Estate
Real estate is my favorite asset class to build wealth for the average person. By investing in real estate, you own an asset class that appreciates with inflation and generates income for you. With interest rates way down, the value of real estate and rental income has gone up.
If you're interested in a hands off approach to real estate investing, consider investing in a publicly traded REIT or in real estate crowdfunding.
Best Private Real Estate Investing Platforms
Fundrise: A way for all investors to diversify into real estate through private funds with just $10. Fundrise has been around since 2012 and manages over $3.3 billion for 400,000+ investors.
The real estate platform invests primarily in residential and industrial properties in the Sunbelt, where valuations are cheaper and yields are higher. The spreading out of America is a long-term demographic trend. For most people, investing in a diversified fund is the way to go.
CrowdStreet: A way for accredited investors to invest in individual real estate opportunities mostly in 18-hour cities. 18-hour cities are secondary cities with lower valuations and higher rental yields. These cities also have higher growth potential due to job growth and demographic trends.
If you are a real estate enthusiast with more time, you can build your own diversified real estate portfolio with CrowdStreet. However, before investing in each deal, make sure to do extensive due diligence on each sponsor. Understanding each sponsor's track record and experience is vital.
I've invested $810,000 in real estate crowdfunding so far. My goal is to diversify my expensive SF real estate holdings and earn more 100% passive income. I plan to continue dollar-cost investing into private real estate for the next decade.
Track Your Finances Diligently
After you abolish welfare mentality, it's time to diligently track your finances. I recommend signing up for Empower’s free financial tools so you can track your net worth, analyze your investment portfolios for excessive fees, and run your financials through their fantastic Retirement Planning Calculator.
Those who are on top of their finances build much greater wealth longer term than those who don’t. They've abolished welfare mentality to its core. I’ve used Personal Capital since 2012. It’s the best free financial app out there to manage your money.
Abolish Welfare Mentality If You Want To Get Rich is a FS original post. Stop thinking you can't get rich or you particular job is beneath you! The goal is to become financially independent so you can do whatever you want.