The way you think about money can easily prevent you from building wealth. Making more money can be a great thing but it all comes down to how you perceive it. Your money mindset might be preventing you from attaining your true potential.
Do you resent wealthy people or cast them into a negative stereotype?
If so, you are negatively impacting your relationship with money. Your subconscious mind will block you from attaining any real wealth. If you think money is a detriment in your life and it is pulling you down, you are looking at it from the wrong angle.
Be aware of your money challenges and how you perceive money. Accept your present reality, be open to change, and do your best to improve yourself.
Myth: Money is the root of all evil
Unlike the popular saying, money is not the root of all evil. Money is the root of freedom, endless possibilities, and abundance. Money lets you do what you really want to do with your life. As Justin from The Root of Good puts it; money is good!
Money is the root of all good.
If someone tries to persuade you otherwise, then they probably want some of your money, so watch out! – Justin
There is a big difference between wanting to make money just to have more money and building wealth. If you are just accumulating more stuff, and pursuing a materialistic abundance, maybe more money will not benefit you in the end.
Building wealth buys you freedom. Money can be the root of good when used for good. JL Collins calls it; F-you money. He defines this as; Not enough [money] to retire on perhaps, but enough to say F-you if needed.
There are many things money can buy, but the most valuable of all is freedom. Freedom to do what you want and work for whom you respect. – JL Collins
There is nothing evil about that. Accumulating wealth to gain freedom is a loyal calling. If you love money, you are not a shallow, self-centered and selfish person. You simply know what you want to work towards your goals to achieve them.
Myth: I will never have enough money
Building your wealth and accumulating F-you money is all good but how on earth am I supposed to do get there?
Having an abundance mindset rather than a scarcity one is crucial. Saving money is all in the mindset. I have seen 6-figures earners who were poor because every dollar they earned went right out the window.
Living paycheck to paycheck is drowning. It renders you a slave to your income. However, breaking the cycle is not impossible. If you are in a situation where you are simply not accumulating any wealth, spending every penny that comes to you, it is time to review your finances.
- Look for expenses to cut
- Cut, cut, cut (easy, right!)
- Pay off debt ASAP
- Dance a little just because it feels good
- Invest all that money you just saved
- Automate your finances
- Relax and let it grow
Once your finances are on track and on auto-pilot, compound interest will work its magic and you will grow rich.
You need to believe in your wealth. Even if you are not “rich” yet, your actions and attitude will reflect your mindset. That is when wonderful things happen. You will get that promotion you always wanted, land that big contract, or get the new job you just applied for. When you truly believe you are worth more, you are!
However, true abundance starts with you appreciating what you already have right now. Be grateful for what you have and you will have more but if you are never happy with what you have, you will never have enough.
In addition, saving and investing is awesome but it can make you miserable if taken too far. If you cut too much, you will hate it and fall right back into your old ways. An easy trick we use is to have a Fun fund; money aside just for outings and activities. We suggest using high-interest savings accounts for your Fun fund so, at least, it will earn a little interest in the meanwhile.
Invest in yourself
Your money mindset is your own. You are the only one who can change it and improve it. You need to define what you really want, who you want to be and work towards this better you. Only you can achieve that.
Read more books and blogs
Never stop learning and seeking out new information. Even if paperbacks are not your thing, there are so many amazing blogs out there to help you reach your full potential.
Work hard like there is no tomorrow
Having a money mindset also means that you work for what you have. You deserve wealth but wealth requires hard work.
If you are unhappy about your situation, work on it. Either on your finances, habits or even at your job, there is no lazying around.
Be in control of your money
No one cares more about your money more than yourself. Take control of your wealth and financial future.
Creating multiple income streams or passive incomes are an awesome way to stay on top of things. Similar to having F-you money, having multiple income streams makes you less dependent on your day job. Once you have the freedom to say no to things you do not feel like working on, you can focus on the amazing things you love.
Finally, to complete your money mindset makeover, you need to forgive yourself for past mistakes and look forward. Being mindful of the long-term is the key here.
Any choice you make today can affect your future-self. Having a long-term vision of your life and finances opens you to a better money mindset. You will make better decisions and smarter moves looking forward.
Once you realize that a dollar spent today could have grown in the future, you might think twice before spending your whole paycheck on a 5-star vacation. (Why pay when you can travel for free anyways?)
To conclude, having an abundance mindset rather than a scarcity one will change the way you live. It might not suddenly increase your income ten folds but it will make you feel wealthier, appreciate your current situation and set you for a better future.
Mr. and Mrs. Xyz