Monday, June 25, 2018
10 Steps to Developing A Wealthy Mindset
We all want to be wealthy, well most of us anyway. I often think about what separates those who are wealthy, with those who are not. I meet wealthy people daily and they all have similar characteristics. I have met very few wealthy people who did not work for their wealth and work hard. The wealthy people I meet, never have debt or have very little of it. They all have a strong sense of purpose, along with an unwavering commitment to their passions. How do those of us who are not yet wealthy, become wealthy. The answer is simple, develop the wealthy mindset. Today I will show you 10 steps to developing the wealthy mindset. The biggest battle is always between your ears, conquer that and nothing will stop you.
1) Decide that you want to be wealthy
Seems easy, but it truly is not. Most people do not become wealthy because they don’t think it is something that is even an option for them. I left a well-paying job because I saw a cap on my potential, among other things. Now leaving your job might not be an option but analyzing your situation and maximizing it surely is. Every situation has the potential to be maximized, but only if it is understood sacrifices will have to be made. I have told many of my clients that even if I made minimum wage I would still find a way to save $100 a week. At my age, if I save $100 a week I will have over a million at retirement. Will I be poor most of my life? Yes, I will. However, I will also have a million waiting for me at the end of the rainbow and that is maximizing my situation. You must decide that wealth is in your future or it won’t be, ever.
2) Define what wealth is to you
Most people think of wealth as money and lots of it. That isn’t always the case. Wealth may be time spent for some people. Being able to pick and choose what they want to do with their time. For others, it is experiences like travel or adventure. Even more people think of it as their family, and making sure they are happy. Whatever wealth may be to you, understand that there will more than likely be a money component to the wealth you seek. Time costs money, adventures cost money, family costs money, heck everything costs money. Define what ideal wealth would be for you or else you will never experience it.
How to Develop a Wealthy Mindset – Wealthy Gorrila
3) Start from the end
You should always start from the end when it comes to planning for wealth. For instance, I would love to own multiple rental properties, so they could provide me a passive income source, so I can free up time to do what I want. I know to have this rental empire, I need one to start. I know to have one to start I need to pay a down payment. I will also need a “rental emergency fund” to make sure if anything happens to my property I am covered. All things together, I figure I will need about 50K to make this happen. For this to happen in 3 years time I need to save about $1400 a month. To save $1400 a month, I need to make an extra $1400 a month. To do that I need to make more money and cut out unnecessary spending. See how I started at the end and worked my way to the start. When you start at the beginning, it will seem too daunting. Imagine like you are already there, that will be your inspiration.
4) Lay the foundation
Mapping out the goal is important, but it all comes from the habits you have on the daily. Frugality, minimalism, working hard, saving money, investing for growth, protecting what’s yours, are all needed. It is what you do on a daily basis that affects the overall trajectory of your life. Daily wasteful spending, missing work, the sin tax, not saving for the future. You may not think that buying lunch everyday is hurting you, but it might be. You must analyze what you do on a daily basis as these daily habits contribute to your wealth or lack thereof. You should do at least one thing every day that is wealth contributor. If you do that one thing and work on eliminating the wealth inhibitors, you will get there I promise.
5) Find a comfortable existence and stay there, sort of
What I mean by this is that your lifestyle should not grow substantially with your income. I remember eating No-Name soup for dinner when I was poor. Those days are over thank god, but there aren’t caviar dinners now that have a bit of money. There is no reason for your lifestyle to match your income and it definitely should not exceed it. If you have hit a comfortable lifestyle, any extra money should be for wealth building. Ever wonder why you see Bill Gates in plain shirts and pants. It is because clothing is a need not a want. He doesn’t need designer clothing to accomplish his goals and just a heads up, neither do you. Food fills his belly, a roof goes over his head, the car gets him to where he needs to be. If your lifestyle constantly grows as your income grows, you will never be wealthy. In fact, you will always be broke.
6) Have a clear “why”
Having a clear and defined “why” is vitally important to wealth building. It is what will get you through the tough times. Sacrifice is necessary for wealth. Ask anyone who is wealthy. Most have a story to tell of hard times, long sleepless nights and moments they wanted to give up. When you have a clear “why” it will guide you through those times. It is your purpose, your reason for getting up every morning. It could be your family, your friends, your patients or work associates, your beach in a far-off land, or the people you wish to help. Your “why” will be a small idea in your mind until it is everything you do always. That is wealth.
What is Your “Why?” – Budget Boss
7) Those who don’t have a “why” can go away
You will encounter people on the daily that will scoff at your pursuit of wealth. Why do they do this? They do this not because they are bad people, or because they are stupid or mean. They do this because they don’t understand. Maybe they do not yet know their purpose for doing what they do. Maybe they are struggling inside with something that you do not understand. Maybe it is because they too wish they had a goal that they were working towards. Unless they are willing to aid you on your journey or get out of your way, they must be gone from your circle. You are the sum of the 5 people you hang around the most. Those people should be supportive, driven, and positive influences. If they are not, it will only drag you down. It doesn’t mean you are better than them, because you are not better than anyone. It just means you are different and are on a different path.
9 Financially Toxic People to Avoid – Budget Boss
8) You cannot stop
It is tempting to reach certain financial goals and then stop. This is troublesome for many reasons. Lifelong financial freedom requires lifelong effort and dedication. You need to continuously put money away and save for the future. If you let one triumph satisfy your saving urge, you will revert back to casual spending and debt accumulation. As you are achieving your goals always be on the lookout for new goals so that you can continue on the path. It is this dedication over the years and decades that will make you wealthy. It is just like working out. You have to keep pushing in order to maintain a level of fitness. Wealth is no different.
9) Enjoy the fruits of your labor
Rewarding yourself with periodic gifts is vital to the process as well. I think the best reward you can give yourself is a vacation. Too many people, myself including, work themselves too hard and don’t get to enjoy what they are working for. Well deserved time off is important to recharge and unwind after a long stretch of hard work. The key is to fit this into your budget and plan for it. Saving all year long means nothing if you blow it all on a vacation. Plan ahead and take some time off. It will be good for your body and soul.
10) Reflect on accomplishments and don’t dwell on failure
Wealth comes from emphasizing activities that produce wealth and minimizing activities that detract from wealth. Working hard and saving money builds wealth. Wasting money and accumulating debt inhibits wealth. As your years go on you will see things that you have done that have caused financial harm. Do not get down on yourself for those activities, instead learn from them. It is only stupid if you continually do them. On the other hand, continually participating in activities that build your wealth should be reflected on as well. It is these practices that should be celebrated and repeated. We all waste money and miss opportunities. The key is to limit those mistakes and fill your day with positive wealth-building practices.
Ever meet someone who is consistently complaining about their money situation? Ever meet someone who is always looking to earn more and enhance their lifestyle? Both are almost identical for one simple reason. Both have an inner voice that guides that kind of behavior. I personally have no doubt that I will be wealthy because I will settle for nothing less. Others even doubt their ability to merely exist because they for some reason believe they deserve nothing more. Everyone can have wealth. The first step is getting your mind there. After that, it is all just numbers and time.
“Wealth is the ability to fully experience life.” – Henry David Thoreau
Email – joe@budgetboss.ca
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