 Do you know that the kind of results that we get in whatever we do is largely dependent on how much we understand the subject? Take a look at Arithmetic and Mathematics, which some people see as simple because they understand it better. Others see it as something very challenging because they never seem to make meaning out of most of the explanations. Let's come back to the game of wealth. The rich guys understand the money game properly and they play well. Other people on the hand don't understand it so they play the game depending on luck. They hope that their next action will be a favorable one that will earn them the kind of money they have been longing after for years. A famous Buddha quote says, the real measure of your wealth is how much you'll be worth if you lost all your money. See, being rich or poor is just an outcome. What different shades to reach from the poor is what they know and how they make it work for themselves. Tim Ferriss, an American entrepreneur and author said, money is multiplied in practical value depending on the number of W's you control in your life. What you do, when you do it, where you do it, and with whom you do it. For instance, let's play a little game. Say we take all the money of a rich man away, living him in the same financial status as another man, a poor man. Which of these two men is likely to make wealth first? Of course, the one-time rich man. Here's one thing. The rich man understands the rule of money and can always use his understanding of the game to generate wealth for himself at any given time. The poor man, on the other hand, will fumble because he lacks understanding of money principle. In this video, I'll show you the nine things poor people don't understand about money. If you're new here, consider subscribing so that you don't miss out on exciting videos like this. 1. Poor people don't understand the essence of saving. I'm pretty sure we've all heard about learning to develop a saving culture or habit if we want to secure our financial future or freedom. So it's safe to assume that everyone, whether poor or rich, knows that it is good to save. However, not everyone does it. Why? You see, unlike the rich that know the essence of saving, poor people don't. Yes, they want to save, but because they don't understand it perfectly, it's easy to give up on the act. Well, rich people understand that it is all about building one's net worth. T. Harve Ecker, an American author and businessman, said, rich people focus on their net worth. Poor people focus on their working income. To the poor, they consider saving as an act to be done when they begin to make money, forgetting that wealth can be generated but accumulated. To do this, you have to learn how to start saving. Mokokoma Mokannona, a philosopher, social critic and a writer of thought-provoking phorisms, said, even a trillion dollars is made up of cents. Joe Moore also said that a simple fact that is hard to learn is that the time to save money is when you have some. If your goal is to become rich, then start saving now, no matter how little. Two, poor people don't understand the importance of investment. Let's say a few poor folks understand the importance of saving. How many of them take it a step forward to invest? Do they understand the role of investment in building wealth? According to T. Harve Ecker, the author of Secret Mind of Millinear, if you are saving your money for a rainy day, what are you going to get? Rainy days. Stop doing that. Instead of saving for a rainy day, focus on saving for a joyous day or for the day you win your financial freedom. The poor save money not to lose it, whereas the rich save money to multiply it. So, they save money for days when they wouldn't have. They save money only for emergency purposes, ignoring the wealth accumulation purpose. Investment means making more money with money. It's a multiplier effect kind of thing. Menage Arora, the author of The Rat Race to Financial Freedom, said that money has the power to buy you things, but a much bigger power of money is in generating more money for you. Those who can manifest the latter are never short of it. Three, poor people don't understand the power of compound interest. Remember what you were thought in a arithmetic class about compound interest. It is the interest calculated on the initial principle, which also includes all of the accumulated interest of previous periods of a deposit or loan. In other words, it is the addition of interest to the principal sum of a loan or deposit. Imagine making a $5,000 investment in your 20s. With a 10% annual return in the stock market, your investment would have occurred to over $200,000 in the space of 40 years. Rich people understand this concept, which is why they do not joke with their savings or investment. Four, people don't understand the importance of monthly budget. A monthly budget allows you to plan appropriately and limits you from overspending your money. When you create a budget, you're putting yourself in control of your finances and help you manage it properly. Frank A. Clark, an American lawyer and politician said, many folks think they aren't good at earning money when what they don't know is how to use it. A good monthly budget should include your savings plan. It should be realistic so that you can sustain it. Five, poor people don't understand the importance of delivering value. You see, the amount of value you provide equals how much money you earn, either as an employee or entrepreneur. You see, poor people only have their minds set on money. Making money is the ultimate for them. They don't understand value creation and without this, they cannot make any money. Instead of thinking like this, I want to become the best car delivery service in this community so that we can help people deliver their products in good time and at the right doorstep. They think this, mark my words, I'll be a millionaire one day or I'll own a Lambo one day. When you create value, you make money in return. It'll be a byproduct. Six, poor people don't understand the importance of promoting themselves. When it comes to self-marketing, most people either shy away from the subject or perform a really bad job at it. Poor people are mainly known for this. T. Harve Ecker said, rich people are willing to promote themselves and their value. Poor people think negatively about selling and promotion. Have you ever been in a job interview where the candidate does a bad job speaking about themselves and the value they have to offer? Such candidates are usually in haste to get done with the interview so that they can find out if they got the job or not. If they don't, they move on very quickly to the next available option. However, if they do, they get underpaid. Poor people don't understand that it's all about solving problems. Poor people complain about every problem, whether it is the government, the roads, the economy, their neighbors, their ability to access the internet as quickly as they would love, etc. All they do is complain. They never think about how they can solve a problem around them. For instance, say they stay in a neighborhood where they have difficulty reaching certain basic amenities like good electricity and water. Instead of coming up with an appropriate solution, they complain about it all day. 8. Poor people don't understand the importance of self-investment. Jim Run, an American entrepreneur and author said, From all education will make you a living. Self-education will make you a fortune. When you don't invest in yourself, it means that you are not growing. When you don't grow, your value diminishes. When your value diminishes, you stop making money. It's that simple. Have you wondered why reach people read books, listen to podcasts, take online and offline courses, attend seminars and conferences, go for consultations, etc. They understand the importance of self-investment. They do it to stay relevant and also increase their value creation. 9. Poor people don't understand what networking means. Your network determines your net worth. When you surround yourself with people who think positively about money and also develop good money habits, you'll soon become that way. Michael Bassey Johnson said, To be of good quality, you have to excuse yourself from the presence of shallow and color-minded individuals. Reach people always find ways to be in the company of one another so that they can learn and grow. Thank you very much for watching our video. If you like this video, watch more videos on our channel and subscribe. We love you.