The Top 10 Distinctions Between Millionaires and the Middle Class

Check out the book by Keith Cameron Smith’s “The Top 10 Distinctions Between Millionaires and the Middle Class”. It’s a quick read – 112 small pages. The focal point of the book is, as the title implies, ten distinctions he draws between millionaires and the middle class.

Listed below in this post are Keith’s top 10 distinctions, in his descending order of importance. Don’t get too wrapped up in the negative statements about the middle class. He just uses them to contrast with millionaires. See the following as summarized with a key point or two that resonated with me within each distinction.

Distinction 10: Millionaires think long term. The middle class thinks short term.

Long term thinking enables you to get out of the month to month mindset that many middle class people have. Doing so allows you to focus on ways to increase your income through goal setting and long term planning. When thinking long term you ask yourself questions like, “How can I reduce my income tax this year?” or “How can I double my income next year?”

Distinction 9: Millionaires talk about ideas. The middle class talks about things and other people.

Wealthy individuals use positive vocabularies. Whereas the middle class uses words such as “impossible” or “I should”, millionaires say “possible” or “I will.” Millionaires aren’t whiners. On the other hand, middle class people can often be heard complaining about their job, boss, bills, money, or debt.

Distinction 8: Millionaires embrace change. The middle class is threatened by change.

People with a wealthy mindset identify the opportunity that change brings as opposed to fearing or worrying about it. Being fearful will prevent you from seeing opportunities that change brings.

Distinction 7: Millionaires take calculated risks. The middle class is afraid to take risks.

To escape the rat race that the middle class is on you have to take risks – albeit a calculated risks. A bunch of elderly people took a survey in which they were asked what they wish they would have done differently over the course of their lives. They had three common answers: Take more risks, take time to reflect on the good moments in life, and do something that will live on after you die.

Distinction 6: Millionaires continually learn and grow. The middle class thinks learning ended with school.

It’s worth spending money on financial education. A $20 book can teach you things that could result in you making $20,000 by applying what you’ve read. It’s much easier to learn if you focus on what you have a passion for.

Distinction 5: Millionaires work for profits. The middle class works for wages.

Your income will only increase gradually when you work for wages. When you work for profits you are able to significantly increase your income over a short period of time. If you work for wages chances are that you will have enough to support yourself - but not much beyond that.

Distinction 4: Millionaires believe they must be generous. The middle class believes it can’t afford to give.

Giving away money can be both fun and fulfilling. Charitable millionaires tend to be happier ones.

Distinction 3: Millionaires have multiple sources of income. The middle class has only one or two.

Having multiple sources of income increases your chances of becoming a millionaire. The best way to create multiple sources of income is to make passive income. Further, building sources of passive income that feed off one another will yield you even more wealth.

Distinction 2: Millionaires focus on increasing their net worth. The middle class focuses on increasing its paychecks.

Working for a paycheck reinforces your dependence on an employer for your financial well-being. Additionally, as your paycheck goes up, so do your taxes. Using your paycheck to buy assets that produce a passive income can help you transition from being dependent upon that paycheck to creating your own income. As your income increases, don’t upgrade your lifestyle at first. Instead, invest your profits.

Distinction 1: Millionaires ask themselves empowering questions. Middle-class people ask themselves disempowering questions.

Empowering questions make you feel good. Disempowering questions, in addition to making you feel bad, don’t get you anywhere. An example of an empowering question is, “What can my wife and I do to make our lives better?” The disempowering equivalent would be “Why are my wife and I always fighting.” The same applies with money. Instead of asking “How can I get a raise at work?” ask yourself “How can I make enough money to support my family while doing something I love?”