WHAT IS THE MONEY MINDSET AND WHY IS IT SO IMPORTANT?
Updated: Jan 20
Before you master all your other skills of wealth creation, it all starts with your money mindset. A lot of what holds people back from being wealthy is not having the right mindset. They think it’s not possible for them to be wealthy and that other people become rich by sheer luck.
A money mindset (or wealth mindset) not only helps you make more money, but it allows you to learn how to properly manage your finances. Money is something that needs to be controlled in order to become wealthy. Without the right mindset, money can control you rather than you controlling it.
Just as you work on building muscles by working out and exercising, your mindset is something you develop and work at over time. With time, patience and discipline, you can develop a good money mindset and build wealth quicker and easier than you would have ever thought possible.
Your mindset determines where you will end up in life. People that are rich now can have a poor money mindset, which sets them up for future failures. Have you ever heard the stories about lottery winners, sport stars or trust fund kids that found themselves with a lot of money and lost it all and ended up broke? That’s because they didn't have a good mindset around wealth, making it inevitable that their money would be mismanaged.
Likewise, it’s possible for a person in poverty to have a wealthy mindset which helps them pave their path to success. History is littered with rags to riches stories where people that started with very little and worked hard from their garage or bedroom to build up their large fortune. The biggest companies in the world such as Apple, Microsoft and Amazon all started from normal people with big dreams who worked by themselves and came from humble beginnings. Now, living in the digital age, there has never been a better time to go out and start on the path to wealth with nothing more than a laptop, internet connection, a good idea and a money mindset!
So what does the money mindset entail?
At many times in your life, you have a choice whether you want to ‘think rich’ or ‘not think rich’. You can decide whether you want to have a ‘have’ or ‘have not’ mindset. The money mindset is deciding early that you are on the path to wealth and sticking to that path no matter what.
The rich think differently to those who aren’t rich.
(Side note: When we refer to a ‘rich’ or ‘poor’ person, we are not judging their circumstances, but we are referring to a mindset which largely determines an individual’s financial future.)
Here are a few examples of the differences between how a ‘rich’ person and a ‘poor’ person thinks:
Poor person- Becoming wealthy is all about luck or being born in the right family
Rich person- Wealth is a skill. Anyone that really wants to become wealthy can. It just needs to be learned and put into practice
Poor person- I’d really like to be wealthy one day.
Rich person- I’m committed to do what it takes to become wealthy no matter how long it takes
Poor person- I’m working in a job for a paycheck to pay the bills
Rich person- I’m working in a job to learn skills to improve my income or one day start a business and to save for investments
Poor person- Thinks that talking about money is not polite and should not be discussed in public or at home.
Rich person- Talks about money at home. Is constantly learning and discussing money because they recognise that it’s the only way that they will get better at the game of wealth.
Poor person- I work hard for my money
Rich person- I need to get my money to work hard for me
Poor person- Only saves money because they think that investing is too risky
Rich person- Sees investing as essential to being wealthy and is constantly learning how to improve their investments
Poor person- Never takes money risks
Rich person- Learns how to identify and manage the money risks for the best return
Poor person- Studies hard to work for a good company
Rich person- Studies hard to find good investments to be in or starts a business and becomes financially independent
Poor person- There’s a limited amount of wealth to go around
Rich person- There is an abundance of wealth to go around for anyone who wants to be rich
Poor person- It’s too hard to be wealthy so why even try
Rich person- Never gives up on their dreams. Seeking wealth no matter how many times they get knocked down
You can see from the examples above how different the way of thinking is between a wealthy and poor person, and how different their outlook in life is going to be. You can see from just a few examples where thinking like a rich or poor person will eventually lead you to in life.
When you see these statements, do you think more like the wealthy person or the poor person?
Getting into the right mindset early in life is so important, as it gets harder and harder to change your thought patterns as you get older.
The good news is that no matter what way you think, you can train yourself to think more like a wealthy person.
Here are a few examples of a good money mindset:
You are willing to think long term and plan ahead. They are happy to trade the boring present for a good future.
You understand that wealth building is a skill that takes discipline and focus, just like any other worthwhile achievement in life
You believe that the best time to start on it is now, time is so important and the earlier you start the easier it will be later.
You see money as abundant, unlimited and able to be shared to anyone that wants it.
You know that wealth building is a long term game and you are willing to keep learning more and more everyday.
You keep moving to higher levels of life and wealth recognise the need to keep breaking old ideas and mindsets and keep growing
The ways that the wealthy think shapes the way that they view everything in life. It shapes the choices you make, the friends you hang out with and what you spend your time doing.
Now more than ever, wealth can be attained by nearly anyone that really wants it badly enough. Everyone is on a path of progress, and even if they are not wealthy now or look wealthy on the surface they could be working well towards being very wealthy down the track.
Becoming wealthy all starts with your MINDSET! Set your money mindset up today!
If you enjoyed this blog and want to learn about money skills and the wealth mindset then check out our series of great courses on this link!
TRY OUR 3 ONLINE COURSES👇🏻
These 3 courses are broken up into:
"The Fundamentals of Wealth" ( 8 week course )
" The Wealth Mindset " ( 4 week course )
"Your money plan in 30 days" (4 week course)
Also you can try out our free mini course here!
THE 6 MONEY SKILLS YOUNG PEOPLE NEED TO LEARN TO TAKE CONTROL OF THEIR LIFE
We look forward to seeing you there! 🙌