Do you have a wealthy mindset? How do wealthy people become and stay rich? Not everyone follows the same path to wealth, but there are a few mindsets that can help you plant the seeds of a rich life. Keep reading to learn more.
Your Network is Your Net Worth
Wealthy people are often selective about whom they choose to associate with. You may have heard an old saying that states that it is easier for people to bring you down than it is for them to lift you. Gravity works to push things down.
If you want to be wealthy, then seek people that share your intentions. Find friends who are of a similar nature. Seek mentors to help you reach whatever goals you have. Be picky about who you choose to bring into your life on an intimate basis.
People who drag you down, hold you back, or who are filled with drama should be pushed away and only kept at arm’s length, if at all.
Never Stop Learning
Wealthy people invest in themselves continuously. They understand that attending a class or seminar on wealth building could pay off in the future. They tend to choose books over mindless television shows.
Try to limit the hours that you spend on social media and watching television and instead read books on wealth building, real estate, and business. Seek out clubs and social groups that share your interests. Sign up for seminars that can help you expand your business, give you fresh ideas on investing, and allow you to network with others who share in your goals.
Focus on the Big Picture
You may have heard the saying, “pound wise, penny foolish.” This is focusing on smaller insignificant things while ignoring the big picture. People may spend hours clipping coupons and shopping at multiple stores to save a few dollars on groceries, but they routinely drop hundreds a month going out to eat. Someone could drive ten miles or more out of their way to save a few pennies on gasoline, but they buy a new car every couple of years and always have a car payment.
A wealthy mindset will focus on the big items. This may mean buying a smaller inexpensive house, buying an older car for cash, and keeping it long-term. It also means spending time on your investments.
When you shift your attention to large purchases, then you can be less attentive to things that may not matter.
Have a Budget
Wealthy people have a budget. They may not track everything down to the penny, but they have a handle on where their money is going. Having categories for investing, saving, charity, and recurring expenses will allow you to always know where your money is and where it is going.
Living frivolously and spending without cause may put you in a situation where you are living paycheck to paycheck. Locked into this scenario will ensure that you never build wealth.
Wealthy people also keep track of their assets. Knowing how much debt and how much your assets are worth will help you reach your financial goals. It is hard to reach any goal if you don’t track your progress and know where you stand.
Limit Debt
Wealthy people limit the amount of debt that they take on. Debt on depreciating assets and consumer debt is usually avoided. They may borrow on a house, and they may leverage income-producing assets like real estate or a business, but they tend to keep their debt load under control.
Too many people will finance anything and everything. You need to shift away from the idea that if you can afford the monthly payment, then you can afford it. Instead, think about the total cost of ownership. Also, avoid carrying a balance on credit cards, and avoid financing items that go down in value.
Income
The most powerful wealth-building tool that you have is your income. This can be from a job, from real estate, from dividends, or a business. The point is, that the more income you can bring in, the faster you can build wealth.
Most wealthy people have multiple income streams. This has the dual advantage of increasing your overall income but also providing security. If one income stream goes down, then you still have multiple others that continue to bring in money.
Conclusion
Do you have a wealthy mindset? Wealth is more of a mindset, attitude, and action than it is an amount. If you want to achieve financial independence, then you need to shift your mindset away from thinking like the poor and middle class.
This was by no means an exhaustive list, but it is a good place to start. Doing just a few of the above ideas will start you on the road to wealth.
Read Also:
Stacking Cash: The Best Wealth Building Books to Help You Master Your Money
How Understanding the Rule of 72 Works Can Build You Wealth
Myths Associated With Rich People and Things to Learn
Things to Look For When Investing in Small Cap Stocks
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Based in the Pittsburgh, PA area, Brian holds full-time employment as a Warehouse Manager for an electronics firm. Brian enjoys wealth building, investing, gardening and the great outdoors. Brian holds a B.A. in Environmental Studies from the University of Pittsburgh and an MBA from Robert Morris University.
