To obtain the type of financial independence you’ve been dreaming about all your life, you must learn to develop a “millionaire mindset”. We all like to dream about being financially wealthy. For most people though, it remains a dream and nothing more. Why is that?
It’s because most people don’t set their mind to achieving that goal. They might not be happy in their current situation but they’re comfortable – and comfort is one of the biggest enemies of growth. How do you go about developing that millionaire mindset? By following these simple steps:
Related post: Start A Business With No Money
To develop a millionaire mindset first one is “Frugality” – a commitment to saving and spending less than you earn. It’s sticking to a budget and resisting lifestyle creep. What is lifestyle creep? It’s spending more when you start earning more. Frugal people typically spend about 80% of their income. The rest, they invest. Frugal people know that becoming rich or financially independent is not about how much you earn. It’s about spending less than you earn. That’s the crucial thing. They’re creating a financial buffer for their future. The money they save might be used to start a new business or retire early.
True financial freedom or financial independence means having time as well as money. To have time, you need income from passive sources. It can be rental income, income from investments, or from an online business. That income doesn’t need to be very high. It just needs to be high enough to exceed your expenses.
2. Goal Setting & Achievement
Successful and wealthy people are goal-orientated. They set short-term and long-term goals for their financial future. Researched showed that 92% of wealthy people had a long-term plan for their finances. And 97% of these people accomplished almost every goal they set. So they rarely fall short. They set goals, and they achieve them. They’ve mastered the art of setting goals and, most importantly, accomplishing them.
3. Think Big
Thinking big is already a millionaire mindset, While I advise to start off with small goals, you absolutely should have a big goal in mind. If you have a business idea, then that is your ultimate goal – to start that business and make a success of it. If you want to invest your way to millions of dollars and do little work other than research, then that is your big goal. There is no shame in not achieving a big goal. If you run a business and aim to make $1 million profit in a year and “only” make $200,000, then you’re still significantly ahead of most people.
Related post: Entrepreneurs: Best books for your life
4. Never Stop Learning
The best thing you can invest in is yourself. Once most people leave the education system, they think their learning days are over. Well, theirs might be, but yours shouldn’t be. Successful people continually learn and adapt. Billionaire Warren Buffet estimates that he read at least 100 books on investing before he turned twenty. Most people never read another book after they’ve left school. Who would you rather be? Learn everything you can about how economics works, how the stocks markets work, how they trend. Learn new skills. If you have an interest in it, learn everything you can about it. You’d be surprised at how often, seemingly useless skills, can become extremely useful in the right situation.
Related post: Business Books: Every Person Should Read
Confidence is essential if you want to be rich. When you have the money you get pressured from other people to spend money. It takes courage to say no. You have to be determined to stick to your budget. Being confident also means being able to invest with your head and not your emotions. Whether it’s investing in a property or stocks and shares, it’s easy to get emotional and not think realistically. Rich people are very good at taking a detached perspective. They have the skill of weighing up the pros and cons logically.
They also act on opportunities quickly. Rich people seem to have the ability to recognize an excellent opportunity when they see one. They don’t procrastinate on decisions. They take action immediately because they have that wealth mindset. They’re confident in their skills and abilities. This gives them resilience, persistence, and self-belief.
6. Never stop hustling
Now you have a foundation for growing your money, it’s time to invest in the most important thing. If you want to foster a wealth mindset, you’ll need to minimize time-wasting activities like watching television or scrolling through social media. Globally, we spend over two hours on social media sites every day. Instead of wasting that time scrolling, take care of your body. If you aren’t already focusing on your mental and physical health, learn and practice “better health habits”, such as eating healthy, sleeping right, and exercising the right way.
Every reader contribution, however big or small, is so valuable for our future. Support pyoflife.com from as little as $1 – and it only takes a minute. Thank you.