{"id":137501,"date":"2024-12-09T10:07:00","date_gmt":"2024-12-09T14:07:00","guid":{"rendered":"https:\/\/www.shortform.com\/blog\/?p=137501"},"modified":"2024-12-09T15:24:30","modified_gmt":"2024-12-09T19:24:30","slug":"why-the-poor-stay-poor-and-the-rich-stay-rich","status":"publish","type":"post","link":"https:\/\/www.shortform.com\/blog\/why-the-poor-stay-poor-and-the-rich-stay-rich\/","title":{"rendered":"Why the Poor Stay Poor &#038; the Rich Stay Rich: Financial Setpoints"},"content":{"rendered":"\n<p>What&#8217;s keeping you from <a href=\"https:\/\/www.shortform.com\/blog\/building-wealth\/\">building wealth<\/a>? Why do some people manage millions with ease while others struggle to save a few hundred dollars?<\/p>\n\n\n\n<p>Your <a href=\"https:\/\/www.shortform.com\/blog\/relationship-with-money\/\">relationship with money<\/a> goes deeper than your bank account balance. It&#8217;s rooted in your mindset, beliefs, and what experts call your &#8220;financial setpoint&#8221;\u2014the amount of money you subconsciously believe you can handle.<\/p>\n\n\n\n<p>Continue reading to explore <a href=\"https:\/\/www.shortform.com\/blog\/why-poor-stay-poor\/\">why the poor stay poor<\/a> and the rich stay rich.<\/p>\n\n\n\n<!--more-->\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-why-the-poor-stay-poor-and-the-rich-stay-rich\">Why the Poor Stay Poor and the Rich Stay Rich<\/h2>\n\n\n\n<p>In <a href=\"https:\/\/www.shortform.com\/app\/book\/secrets-of-the-millionaire-mind\" target=\"_blank\" rel=\"noreferrer noopener\"><em>Secrets of the Millionaire Mind<\/em><\/a>, T. Harv Eker suggests that the accumulated beliefs in your <a href=\"https:\/\/www.shortform.com\/blog\/money-mindset\/\">money mindset<\/a> include a conclusion about <a href=\"https:\/\/www.shortform.com\/app\/book\/secrets-of-the-millionaire-mind\/part-1#your-financial-setpoint\" target=\"_blank\" rel=\"noreferrer noopener\">the amount of money you<em> <\/em>trust yourself to manage effectively<\/a> (we\u2019ll refer to this as your \u201cfinancial setpoint\u201d). <strong>Your money mindset programs you to think and behave in specific ways that conform to your financial setpoint<\/strong>\u2014even if you manage to earn or save money <em>past<\/em> your financial setpoint, you won\u2019t be able to hold onto it for long. This is because your money mindset operates from the belief that you can\u2019t handle the challenges that come with managing more money.&nbsp;<\/p>\n\n\n\n<p>Eker explains that <strong>financial setpoints are why the poor stay poor and the rich stay rich<\/strong>. Different people can comfortably manage different amounts of money depending on their financial setpoint. Some people only feel comfortable managing small amounts of money, while others can comfortably manage millions of dollars.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-why-your-money-mindset-might-limit-your-financial-setpoint\">Why Your Money Mindset Might Limit Your Financial Setpoint<\/h3>\n\n\n\n<p>According to Eker, if you struggle to earn or accumulate more money, it\u2019s because you <a href=\"https:\/\/www.shortform.com\/app\/book\/secrets-of-the-millionaire-mind#part-2-the-poor-mindset\" target=\"_blank\" rel=\"noreferrer noopener\">internalized <em>disempowering<\/em> beliefs<\/a> that limit your financial setpoint.<\/p>\n\n\n\n<p>In <a href=\"https:\/\/www.shortform.com\/app\/book\/psycho-cybernetics\" target=\"_blank\" rel=\"noreferrer noopener\"><em>Psycho-Cybernetics<\/em><\/a>, Maxwell Maltz provides psychological insight into <em>why <\/em>your money mindset might create a financial setpoint and counteract your attempts to surpass it. You developed limiting beliefs as a way to <a href=\"https:\/\/www.shortform.com\/app\/book\/psycho-cybernetics\/chapter-2\" target=\"_blank\" rel=\"noreferrer noopener\">protect yourself from emotionally uncomfortable situations<\/a>\u2014the way you identified with the uncomfortable situation led you to feel <em>unwanted<\/em> negative emotions. You reacted by forming a conclusion about what led to this discomfort, and you made the decision to avoid similar situations and <strong>protect yourself from future discomfort<\/strong>. Your mind stored this decision as a belief. Even though you\u2019re not conscious of this belief, it continues to impact your thoughts, feelings, and behaviors.<\/p>\n\n\n\n<p><strong>Example: <\/strong>Your parents worked hard for their money and rarely spent any money on themselves. Every time they had excess money, family members would ask for handouts. Your parents always gave their money to those who asked. Observing this, you resented your parents for working so hard and prioritizing the needs of others. You also resented all of the people who took advantage of your parents. These feelings of resentment led you to associate <em>having money<\/em> with <em>being taken advantage of<\/em>, and you decided that you would never let yourself get treated that way. <strong>This <\/strong><a href=\"https:\/\/lauraelkaslassy.com\/limiting-money-beliefs\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>turned into a belief <\/strong><\/a><strong>and created your financial setpoint<\/strong>: If you have over $X you\u2019ll get taken advantage of, so it\u2019s safer to never have more than that amount.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-how-disempowering-beliefs-prevent-you-from-surpassing-your-financial-setpoint\">How Disempowering Beliefs Prevent You From Surpassing Your Financial Setpoint<\/h3>\n\n\n\n<p>We\u2019ve just explained why you might have developed <a href=\"https:\/\/www.shortform.com\/blog\/overcoming-self-limiting-beliefs\/\">disempowering beliefs<\/a> that limit your financial setpoint. Now, let\u2019s explore three ways such beliefs prevent you from surpassing that limit and <a href=\"https:\/\/www.shortform.com\/blog\/achieving-financial-success\/\">achieving financial success<\/a>.<\/p>\n\n\n\n<p><strong>1) They make you feel like a victim:<\/strong> Eker argues that <strong>disempowering beliefs foster a <em>victim mentality<\/em><\/strong> that <a href=\"https:\/\/www.shortform.com\/app\/book\/secrets-of-the-millionaire-mind\/part-2#poor-people-have-a-negative-attitude-and-mismanage-their-money\" target=\"_blank\" rel=\"noreferrer noopener\">prevents people from accepting complete responsibility for their financial situation<\/a>. Because they don\u2019t <a href=\"https:\/\/www.shortform.com\/blog\/accepting-responsibility\/\">take responsibility<\/a> for their finances, they overlook how their decisions and behaviors contribute to their situation. This <a href=\"https:\/\/www.shortform.com\/blog\/not-knowing-yourself\/\">lack of self-awareness<\/a> traps them in an uncomfortable financial position because it inhibits them from learning from their mistakes and seizing potential opportunities. Over time, this impasse erodes their self-confidence, convincing them that they <em>can\u2019t<\/em> improve their situation because they\u2019re not good enough to earn or manage more money.<\/p>\n\n\n\n<p><strong>2) They make you rationalize your lack of money:<\/strong> Rachel Rodgers (<a href=\"https:\/\/www.shortform.com\/app\/book\/we-should-all-be-millionaires\/1-page-summary\" target=\"_blank\" rel=\"noreferrer noopener\"><em>We Should All Be Millionaires<\/em><\/a>) makes a similar point that disempowering beliefs <a href=\"https:\/\/www.shortform.com\/app\/book\/we-should-all-be-millionaires\/1-page-summary#reframe-your-limiting-thoughts\" target=\"_blank\" rel=\"noreferrer noopener\">make people <em>think<\/em> that they can\u2019t make or manage more money<\/a>. She adds that they justify this belief by convincing themselves that money isn\u2019t important to them, that making money requires a grueling grind, or that they\u2019re simply not skilled with money. These justifications prevent them from making changes or trying new strategies to manage their wealth.<\/p>\n\n\n\n<p><strong>3) They make you feel guilty for wanting money:<\/strong> In <a href=\"https:\/\/www.shortform.com\/app\/book\/you-are-a-badass-at-making-money\/1-page-summary\" target=\"_blank\" rel=\"noreferrer noopener\"><em>You Are a Badass at Making Money<\/em><\/a>, Jen Sincero says that disempowering <a href=\"https:\/\/www.shortform.com\/blog\/limiting-money-beliefs\/\">beliefs about money<\/a> <a href=\"https:\/\/www.shortform.com\/app\/book\/you-are-a-badass-at-making-money\/1-page-summary#beliefs-about-money-that-hold-us-back\" target=\"_blank\" rel=\"noreferrer noopener\">make people think that money is bad, or that they must do bad things to have a lot of money<\/a>. These thoughts make them feel immoral or guilty for having or wanting more money. As a result, they feel conflicted about pursuing wealth, which leads them to hesitate and miss out on financial opportunities.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>What&#8217;s keeping you from building wealth? Why do some people manage millions with ease while others struggle to save a few hundred dollars? Your relationship with money goes deeper than your bank account balance. It&#8217;s rooted in your mindset, beliefs, and what experts call your &#8220;financial setpoint&#8221;\u2014the amount of money you subconsciously believe you can handle. Continue reading to explore why the poor stay poor and the rich stay rich.<\/p>\n","protected":false},"author":9,"featured_media":137528,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[31,9],"tags":[1690],"class_list":["post-137501","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-money","category-psychology","tag-the-master-guides-cultivate-an-empowering-money-mindset","","tg-column-two"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.3 (Yoast SEO v24.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Why the Poor Stay Poor &amp; the Rich Stay Rich: Financial Setpoints - Shortform Books<\/title>\n<meta name=\"description\" content=\"Your financial setpoint is the amount of money you subconsciously believe you can handle. 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Learn why the poor stay poor and the rich stay rich.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.shortform.com\/blog\/why-the-poor-stay-poor-and-the-rich-stay-rich\/\" \/>\n<meta property=\"og:site_name\" content=\"Shortform Books\" \/>\n<meta property=\"article:published_time\" content=\"2024-12-09T14:07:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-12-09T19:24:30+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/s3.amazonaws.com\/wordpress.shortform.com\/blog\/wp-content\/uploads\/2024\/12\/poor-woman-rich-woman.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1344\" \/>\n\t<meta property=\"og:image:height\" content=\"768\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Elizabeth Whitworth\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Elizabeth Whitworth\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.shortform.com\/blog\/why-the-poor-stay-poor-and-the-rich-stay-rich\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/why-the-poor-stay-poor-and-the-rich-stay-rich\/\"},\"author\":{\"name\":\"Elizabeth Whitworth\",\"@id\":\"https:\/\/www.shortform.com\/blog\/#\/schema\/person\/d2928cf6c11a69ced1491d6a5b74fb13\"},\"headline\":\"Why the Poor Stay Poor &#038; the Rich Stay Rich: Financial Setpoints\",\"datePublished\":\"2024-12-09T14:07:00+00:00\",\"dateModified\":\"2024-12-09T19:24:30+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/why-the-poor-stay-poor-and-the-rich-stay-rich\/\"},\"wordCount\":819,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/#organization\"},\"image\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/why-the-poor-stay-poor-and-the-rich-stay-rich\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.shortform.com\/blog\/wp-content\/uploads\/2024\/12\/poor-woman-rich-woman.jpg\",\"keywords\":[\"The Master Guides: Cultivate an Empowering Money Mindset\"],\"articleSection\":[\"Money\",\"Psychology\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.shortform.com\/blog\/why-the-poor-stay-poor-and-the-rich-stay-rich\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.shortform.com\/blog\/why-the-poor-stay-poor-and-the-rich-stay-rich\/\",\"url\":\"https:\/\/www.shortform.com\/blog\/why-the-poor-stay-poor-and-the-rich-stay-rich\/\",\"name\":\"Why the Poor Stay Poor & the Rich Stay Rich: Financial Setpoints - Shortform Books\",\"isPartOf\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/why-the-poor-stay-poor-and-the-rich-stay-rich\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/why-the-poor-stay-poor-and-the-rich-stay-rich\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.shortform.com\/blog\/wp-content\/uploads\/2024\/12\/poor-woman-rich-woman.jpg\",\"datePublished\":\"2024-12-09T14:07:00+00:00\",\"dateModified\":\"2024-12-09T19:24:30+00:00\",\"description\":\"Your financial setpoint is the amount of money you subconsciously believe you can handle. 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