According to Federal Reserve data, the top 1% of Americans held nearly 31% of all household wealth in the first quarter of 2025. If you want to join this group, you’ll likely need to rethink how you view, earn and use money.
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A recent YouTube video from financial YouTuber Humphey Yang discussed how the mindset of the top 1% differs from that of the typical person, who is often either financially struggling or not making enough progress.
Here are five ways to shift your mindset so you can have a richer life.
Assets vs. Liabilities
While you might consider all the things you own to be assets, some are more like liabilities since they will continue to drain your money rather than increase it.
Yang contrasted buying an expensive Mercedes car with a rental property. The car is like a liability since it leaves you with a high loan payment, loses value through depreciation and comes with ongoing costs to cover. While a rental property would still involve various upfront and ongoing costs, you can also bring in cash by renting out this asset.
To be more like the top 1%, scrutinize your purchases more carefully and consider whether you need to focus more on those that generate income. And if you do purchase something that’s more like a liability, make sure it fits your budget and has personal value.
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Resource of Time
When trying to become wealthy, your first thought may be to make more money at your job. But Yang explained that this becomes a “time trap” since you only generate money during the limited time you have to work. The top 1% do things differently.
Yang explained, “On the whole, I would say that rich people are always trying to figure out how they can get their money to work for them so that they don’t always have to be the sole person working to earn their income.”
He suggested adding in passive income options, like renting out a property, purchasing investments, offering digital products or having a business that others operate. You can use your job’s hourly pay rate to figure out which mix of these options could replace at least part of those wages.
While this change doesn’t mean you won’t have to work anymore, the extra money can help you increase your wealth without giving away too much more time.
Scarcity vs. Abundance
The 2025 Northwestern Mutual Planning & Progress Study found that 45% of Americans viewed their finances as a weak spot. Being financially insecure makes it more likely to have a scarcity mindset, which might keep you from investing since you’re scared of losing the cash you have.
But Yang said that this fearful, risk-averse mindset is counterproductive if you want to join the top 1%. That group is more likely to have an abundance mindset that sees many opportunities to take advantage of and believes their money will grow through investments. They adopt a long-term mindset that weighs the risk of missing out more heavily than potential loss.
Yang encouraged reevaluating your thoughts on money so you can get out of the scarcity mindset. For example, if you’re scared to take advantage of an opportunity, consider what you might miss out on if you don’t.
Thoughts on Spending
Yang said, “Poor people might see everything as an expense, but wealthy people see potential investments.”
He gave an example of an expensive networking event ticket. While one person might think of several other items they could have bought with that money, another might picture a profitable, career-boosting collaboration that could result from attending.
To make wiser spending decisions, differentiate between investments and expenses with a simple return-on-investment calculation. For example, if you spend $1,000 to learn a skill that boosts your income by $10,000 that year, that’s an investment with a 900% return. But if you buy a $50 video game with no expected return, that’s an expense.
Yang also encouraged tracking expenses and investments so you can understand and adjust your spending habits. Both can be fine, but consider how they impact your finances over time.
Short- vs. Long-Term Thinking
Many people have a habit of making everyday purchases to feel better or reward themselves. Even if the amount seems small, like $6 for a gourmet coffee, the immediate reward can affect your long-term finances — even more so when you’re still young and each dollar has the highest potential future value.
Yang explained, “Every time you make that choice instead of investing that money, you are literally sabotaging your future wealth.”
He encouraged being more like the top 1% and practicing delayed gratification for these types of purchases. Yang also explained that long-term thinking can help with other important financial decisions. One example is whether changing jobs for an immediate pay bump is worth the ultimate impact on your career path.
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This article originally appeared on GOBankingRates.com: 5 Key Mindset Shifts To Financially Become the Top 1%, According to Humphrey Yang
