Psychology of Wealth People
PART 1
In life, we have two kinds of shoppers – the young and impressionable shopper with not a lot of money (in trading, they known as novices) and the old and wise shopper with obviously more wealth (in trading, they known as seasoned traders).
The young and impressionable buy on impulse the moment they see something new and attractive. This puts them in the hip and fashionable light. But the hipness doesn’t last and they will continue to spend lavishly to stay hip and fashionable by always shopping for things that don’t have an intrinsic value.
The old and wise shopper with obviously more wealth will shop for things that are necessary and will always look for the best bargains, lowest deals and cost efficiency. This ensures that what they buy will last and save them money in the long term. They shop for an intrinsic value.
The young and impressionable buy properties on impulse without much care for the total value (quantum value) and will be focused instead on the ability to make the monthly instalments. They often shop for properties that are too large for their needs and in locations that are most convenient and hip.
The old and wise property hunter will buy a property with the quantum in mind and will scope out the deal with the best resale value that their nest egg can afford. They will stick to properties that meet their needs and won’t mind locations that are slightly out of the way as long as there is a promise of future developments and expansions that will guarantee a rise in their property’s value.
The novice trader is exactly like the young and impressionable shopper in every way. They will always get caught up in the hype, they will always buy the rumor and sell the news, they will always regret pulling the trigger too early and they almost always spend more than they can afford.
PART 2
The young and impressionable shopper doesn’t give much, if any, consideration to market timing and will buy on impulse without thinking of the long-term consequences. In short, they buy for the “now”.
The old and wise shopper is particular about the timing of their purchases knowing that a well-timed purchase could save some money that can be used for other purchases in the future. They buy for the future.
The young and impressionable shopper doesn’t consider the price as long as they can have possession as quickly as they can get it.
The old and wise shopper is particular about the price even if it is affordable as long as they can have the best price no matter how long it takes to get that bargain.
The young and impressionable shopper is easily influenced by marketing, advertising and peer pressure and will buy on public sentiment. (Herd instinct)
The old and wise shopper is not easily moved by hype, will be extremely skeptical about marketing gimmicks and will be deterred by pressure. (Contrarian)
The young and impressionable shopper has a budget based on a monthly income and how much their credit card can stretch.
The old and wise shopper has a budget based on prudence, frugality and need.
The young and impressionable shopper will buy unnecessary things they can’t afford to impress people that don’t matter and only impress them for a very short time.
The old and wise shoppers buy things they need with what they can afford.
The novice trader is exactly like the young and impressionable shopper in every way. They will always get caught up in the hype, they will always buy the rumor and sell the news, they will always regret pulling the trigger too early and they almost always spend more than they can afford.
PART 1
In life, we have two kinds of shoppers – the young and impressionable shopper with not a lot of money (in trading, they known as novices) and the old and wise shopper with obviously more wealth (in trading, they known as seasoned traders).
The young and impressionable buy on impulse the moment they see something new and attractive. This puts them in the hip and fashionable light. But the hipness doesn’t last and they will continue to spend lavishly to stay hip and fashionable by always shopping for things that don’t have an intrinsic value.
The old and wise shopper with obviously more wealth will shop for things that are necessary and will always look for the best bargains, lowest deals and cost efficiency. This ensures that what they buy will last and save them money in the long term. They shop for an intrinsic value.
The young and impressionable buy properties on impulse without much care for the total value (quantum value) and will be focused instead on the ability to make the monthly instalments. They often shop for properties that are too large for their needs and in locations that are most convenient and hip.
The old and wise property hunter will buy a property with the quantum in mind and will scope out the deal with the best resale value that their nest egg can afford. They will stick to properties that meet their needs and won’t mind locations that are slightly out of the way as long as there is a promise of future developments and expansions that will guarantee a rise in their property’s value.
The novice trader is exactly like the young and impressionable shopper in every way. They will always get caught up in the hype, they will always buy the rumor and sell the news, they will always regret pulling the trigger too early and they almost always spend more than they can afford.
PART 2
The young and impressionable shopper doesn’t give much, if any, consideration to market timing and will buy on impulse without thinking of the long-term consequences. In short, they buy for the “now”.
The old and wise shopper is particular about the timing of their purchases knowing that a well-timed purchase could save some money that can be used for other purchases in the future. They buy for the future.
The young and impressionable shopper doesn’t consider the price as long as they can have possession as quickly as they can get it.
The old and wise shopper is particular about the price even if it is affordable as long as they can have the best price no matter how long it takes to get that bargain.
The young and impressionable shopper is easily influenced by marketing, advertising and peer pressure and will buy on public sentiment. (Herd instinct)
The old and wise shopper is not easily moved by hype, will be extremely skeptical about marketing gimmicks and will be deterred by pressure. (Contrarian)
The young and impressionable shopper has a budget based on a monthly income and how much their credit card can stretch.
The old and wise shopper has a budget based on prudence, frugality and need.
The young and impressionable shopper will buy unnecessary things they can’t afford to impress people that don’t matter and only impress them for a very short time.
The old and wise shoppers buy things they need with what they can afford.
The novice trader is exactly like the young and impressionable shopper in every way. They will always get caught up in the hype, they will always buy the rumor and sell the news, they will always regret pulling the trigger too early and they almost always spend more than they can afford.
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