How does one go about developing a Wealthy Mindset?
Ignore Social Conditioning
- Money is not the root of all evil.
- Desiring wealth does not make someone greedy.
- Most crime is perpetrated by the impoverished.
- Jobs and opportunities are created by the wealthy.
If you have any negative beliefs about money, it will definitely limit your ability to become wealthy. You may not even know you have these beliefs. You may have learned them from your parents, teachers or religious organization. You must question any negative beliefs before they undermine your opportunities.
In order to become wealthy, you should believe you are deserving of wealth and that wealth will make you a better person.
Eliminate Scarcity Thinking
I have always been a frugal person. I was raised in a frugal household by a divorced mom and I have lived on a very modest income. Being frugal served me well in many ways, but it also held me back. By concentrating on my expenses instead of my income, I cheated my family out of financial resources we could have enjoyed.
I remember early in my career thinking I didn’t want to make too much money, so I could remain marketable. It was only after many years of working for very low wages that I realized my beliefs were holding me back. I compared my salary to the average for my position and discovered I was making almost 40% less. As soon as I accepted my true value in the marketplace, my income rose dramatically.
Never limit the amount of money you deserve. If you want or need more money, raise the level of service or value you provide.
Develop a Purpose
Most people don’t become wealthy because that is their purpose in life. Most become wealthy because their purpose is building a business, solving a problem or providing a service. It takes a lot of passion to become successful and money by itself is a pretty boring motivator. Wealth is often just a benefit of purpose.
Consider what happens to people who suddenly run into a lot of money. Most of the time, this is more of a curse than a blessing. After a brief period of excitement and abundance, they often wind up broke again. This may happen because they aren’t skilled in the handling of money. More likely, it happens because their wealth doesn’t serve any purpose. So, they quickly squander it away.
Think of all the wealth locked in foundations and the important purposes they support. Compare your investments to the Gates Foundation, the Getty Trust or the Susan G. Komen fund. That is the type of purpose your wealth needs to protect it from many whims and pit-falls. Your family’s future is an important cause.
Wealth without purpose looks a lot like disposable income.
Formulate a Plan
For many years, I dreamed of becoming financially self-sufficient. I had a sound financial plan and worked very hard to achieve it. My plan was to save a million dollars, pay off our house and live on the interest.
One day, I realized my plan was flawed. It left us vulnerable to market crashes, inflation and interest rates. It also pushed retirement into my late sixties, when I really wanted to retire early. And, the interest on a million dollars may not generate a comfortable living in 20-30 years.
When I first realized this problem, I became depressed. I was over 20 years into a financial plan that may not work. Although this was very stressful at the time, it turned into huge blessing. By facing the facts honestly, I formulated a new plan that included alternate sources of income. My new plan is better diversified, less vulnerable, and may allow me to semi-retire in my fifties.
In order to become wealthy, you must have a plan. Analyze your plan often and objectively to make sure you will reach your goals.
The Bottom Line
The bottom line is that a wealthy mindset is not about accumulating money. It’s about personal achievement and the realization of your goals and dreams. It’s about financial freedom and the ability to chart your own future. It’s about the value of your life’s purpose and the affect you have on the lives of others.
Wealth provides a responsibility, a privilege and a dream.
“You aren’t wealthy until you have something money can’t buy.”
Garth Brooks – American Country Music Artist
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