Rich vs Poor Mentality

I’ve always been very concerned with price. Before I ever knew the benefits or value of anything, I would always ask, “How much does it cost?”. Spoiler Alert: this is not how rich people think.

Growing up we were that family that would never buy drinks at restaurants because it cost too much. My Dad would always say, “Why should I pay $1.85 for a small coke when we can get it for 75 cents at the gas station?” It drove him nuts when we ordered cheeseburgers, because the cheese cost an additional 15 cents. Can you relate?

“I was so focused on the price that I was completely missing out on the value.  This mindset keeps people from being successful.  Rich people focus on value, poor people focus on price.”

Warren Buffet on Being Rich Value vs PriceA couple of months ago I was invited to join a business coaching program that would teach me how to create, manage and grow my own business. Naturally, my first question was, “How much does it cost?” My mouth dropped when they told me how much it was. The price was high four figures. I could buy a car for that much! Why would I pay that when Google gives me access to the world’s information for free?!

This coaching program promised great results that were backed up by case studies, testimonials and current clients. A lot of these programs are sketchy and scam people out of a lot of money but I also had a good friend who was involved in this program and I trusted him. He told me he thought it would help me out but he didn’t want to push anything on me. I thought about it for a couple of days.

“I often thought, where do I want to be? What do I want to be doing?”

My Why 2014Running my own company and having it provide health, security and opportunities for my family has always been a dream of mine. I was working at a great company for four years while trying to balance and grow a side business as well. Every year I would always tell myself, “This will be the last year I work here.” But year after year I was still there.

I had my own marketing consulting company but I was never able to justify leaving my day job for it.

I wanted three things…

  1.   Quit my day job
  2.   Grow my current Marketing company
  3.   Be able to provide Food, Health, Security, Shelter and opportunities for my family.

Money wasn’t on my list of wants, but was necessary to provide for my family.  Money was not my end goal but a means to an end.

“Naturally, I asked myself, ‘How much would I be willing to pay to get these things?’  It was a no brainer. I would easily pay $xx,xxx if I could get these results.”

After just a few months into this program, I’ve accomplished almost everything I wanted to do. I quit my job and grew my own company. I can honestly say that it has provided nearly everything that my family needs plus a little bit extra.

Last month I made more money than I ever have. What would have taken me five months of work at my old job I made in a month! I’m not writing this to brag but to show you that it’s possible. The American dream is alive and well for those willing to invest in themselves.

By no means am I making the kind of money to be flying on a private jet and traveling the world but to be honest, I don’t need that kind of money.

The information I learned in this program is priceless and has allowed me to design my life how I want.  It’s the kind of information that you can’t find on Google.

This experience has changed my perspective on value and price.

“You should never make a decision based on price but on the value it provides.”

Looking back on it I would have easily paid double to get the results I have now.

Rich People Favor Value Over PriceI also find it amusing when people complain about our membership site that costs $497.  They’re so fixated on price that they lose sight of the real value.  Even if the content teaches them how to blow up their business with YouTube Ads.  When you’re so worried about paying the bills you blind yourself to bigger investments AKA opportunities.  Stop thinking small and start thinking big.

Would you pay $25,000 if it taught you how to make $50,000?

If you’re saying, “I would never spend $25,000 on anything that’s a lot of money.” Slap yourself.

“The point is not how much money you’re spending, but the value you get in return”.

This is also known as an investment; spending money now so you can make more money in the future.

You may also be saying, “I don’t even have $1,000 how can I afford $25,000?” Everyone knows at least one person with a lot of money. Use their money to finance it. You could say, if you give me $25,000, I will give you back $30,000 in a couple of months. If you’re smart about your investment, your rich friend is now richer because you just made him an extra $5,000 and you’re well on your way to becoming rich yourself.

I know there’s a lot of questions and “what if” scenarios, but you get the picture. It takes money to make money.

“Rich people make decisions based on value, not price.”

I’ve always been very concerned with price, but now I’m more concerned with the value I’m getting. When I’m faced with a purchasing decision, my first question is, “What value does this bring to me?  How will this make my life better, faster, easier, stronger?”

When was the last time you invested in yourself?
What do you want?  What would you pay to get there?

Comments 11

  1. Hey Jake

    Sorry I’ve been a sleeper on feedback from your content. Thanks for the videos, as well as this blog post.

    I used to have he poor man’s mentality in regards to investment mindset. You hit it in the nail, something that people still struggle with. Hell sometimes I still do, if I don’t weigh value/outcome to price scale.

    Currently I have to get as much low cost high value content as possible, due to a transition, it’s exciting. Once more funds are regenerated, actual investment in more programs will follow.

    The beauty of YouTube and the web is in making “valuable content” so much more accessible to less fortunate, not poor, but less fortunate. “Poor” people don’t expand the mindset, not clever , witty, or ingenuous wig efforts to learn.

    Thank you for providing VALUE to people who seek it Jake.

    Cheers

  2. I CAN’T BELIVE HOW MUCH BULLSHIT THIS IS!!!!!
    THIS IS A GUY JUST TRYING TO RIP OFF MONEY FROM YOU BY TRYING TO RELATE
    TO YOU.

    DO NOT BELIVE HIM!!!

  3. Value vs Price, there’s more to price than just the $$’s. Would you pay $10K to learn how to make $50K? Most would say, “no brainer”! Most “want” to be rich, very few have the “desire” to do what it takes. Lots of people will pay the $10K and then find out, to make the $50K, they have to do things that will make them uncomfortable. The desire to remain in comfort zone, never trying and never failing is what they desire. In the end they will blame their poor $10K investment on a poor program.

  4. Pingback: Rich vs Poor Mentality - Guest post from Jake Larsen | Tim ThompsonTim Thompson

  5. This is an awesome post Jake and it’s something I’ve had to overcome as well. I grew up with the same parental mindset and it’s hard to get over. Another mentality that will keep you poor is to get stressed or have negative emotions when you think about money. It means your mind perceives money as hard to come by, whereas if you have an abundance mentality, your brain perceives money as easy to come by and makes your sales and earnings come much easier.

  6. I will be buying your service soon. Being a recent university grad my finances are not order yet. But I’m expected to make money off of my upcoming book. I’m really interested in learning how to use my site to make money.

  7. I couldn’t agree more Jake. The greatest battle in life is not what happening externally to us but within the confine of our mind….if we can win the battle within, our externally will improve significantly…it is a challenge because we are sourounded by negative people…they are around us…..Cheers Leo

  8. This is so true! It’s hard not to put a price on the things you want in life. When the value far out weighs the improvement it will make in your life, you have to take that leap of faith.

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