Say someone could offer you one piece of advice that could magically transform your finances for the better — and all you have to do is drastically shift your way of thinking.
Many people grew up with a set of beliefs around money that hinder financial growth, but according to experts, it’s possible to break free from these constraints….Continue reading…
By: Cindy Lamothe
Source: GOBankingRates
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People with a wealth mindset understand that they are in charge of their destiny. They decide how to use their skills to grow their revenue, how to invest it, and how to benefit from it. It can be hard to change your mindset if all your life you saw things through a different set of lenses.6 Ways to Develop a Positive Money Mindset:
- Identify your money scripts.
- Log into your financial accounts every morning.
- Express gratitude for what you have.
- Avoid dwelling on your financial past.
- Get clear on what you want.
- Celebrate your progress on a regular basis.
- Looking to your future with confidence.
They understand the connection between risk and return, make short-term and long-term plans and have the resilience to stay focused on their end goals despite market turbulence. Additionally, “rich mindset” people make decisions driven more by intention and strategy and less by emotion. The study also found that the rich are less agreeable and less neurotic, but more conscientious, more open to experience, and more extraverted.
Beyond that, however, other key findings emerged in the interviews: The super-rich are overwhelmingly nonconformists who love to swim against the tide. Rich people dream of the future. “Self-made millionaires get rich because they’re willing to bet on themselves and project their dreams, goals and ideas into an unknown future,” Siebold writes. “People who believe their best days are behind them rarely get rich, and often struggle with unhappiness and depression.
It’s all about increasing your self-awareness, self-compassion and self-esteem. This can be done by processing any anxiety & depression, abuse & trauma, grief & loss or deconstructing negative mindsets and defense mechanisms. A scarcity mindset, or poor mindset, is associated with having a very near-term focus, Whichello explained. “Individuals with this mindset are more concerned with meeting their immediate needs and wants than planning for the future or saving for long-term goals.
Basically, to accumulate wealth over time, you need to do just three things: (1) Make money, (2) save money, and (3) invest money. Rich mindset seeks to spend their time, resources, and energy on work that continues to pay off long after the effort has been invested. Rich mindset is all about getting a flywheel spinning. You can have depression regardless of how much money you have or make.
Although money makes some aspects of life easier, there are other factors that play into mental health and well-being. The wealthy can get depressed the same way people living in poverty can experience depression. When you’re 35, you have the benefit of time on your side. There’s decades of time for compound growth to build your wealth. Unfortunately, delay could seriously derail your efforts to end up a millionaire.
The millionaire mindset is not just thinking about great ideas, it’s about taking action. You need to cultivate strategies that support your mental transformation and boost your business efforts. Successful entrepreneurs never stop learning. Wearing big logos can make outfits look cheap, giving off an impression of trying too hard. To look wealthy, opt for clean, logo-free clothing.
High-end brands like Coach, Fendi, Dolce & Gabbana, Versace, and Gucci often display their logos prominently, but truly luxurious brands avoid this. For instance, we hypoth- esize that curiosity, spontaneity, and energy will facilitate a psychologically rich life; strong moral principles and religiosity will facilitate a meaningful life; and stable relationships, time, money, and positive mindsets will facilitate a happy life.
One of the most common examples of lazy money is cash that’s sitting in a low-interest savings account, earning minimal interest. It may not seem like a big deal, and you might even feel you’re being “safe” by having that extra cushion, but lazy money can hurt you financially, limiting your ability to grow your wealth. A growth mindset is characterized by a belief that abilities and intelligence can be developed through dedication and hard work.
People and families who live in poverty may go without proper housing, clean water, healthy food, and medical attention. Each nation may have its own criteria for determining the poverty line and counting how many of its people live in poverty. Practice gratitude daily and make it a habit to reflect on the things you’re grateful for, whether it’s the love of family, good health, or even small joys like a sunny day.
You can begin nurturing a wealth mindset by outlining your goals, learning about finances, taking calculated risks, and surrounding yourself with successful people. Attending a wealth or abundance retreat can also help you achieve your financial vision. A scarcity mindset, or poor mindset, is associated with having a very near-term focus, Whichello explained.
Individuals with this mindset are more concerned with meeting their immediate needs and wants than planning for the future or saving for long-term goals. The two studies consistently found that rich people are more conscientious, open to experience, and extraverted than the average population. They are also less agreeable (that is, less likely to shy away from conflict) and less neurotic (as in, more psychologically stable).
Secrets of the Millionaire Mind (2005) explains how people unconsciously develop rigid attitudes and behavioral patterns in their relationship to money that they learned from their parents – and that will determine their future wealth. The World Bank Organization describes poverty in this way: “Poverty is hunger. Poverty is lack of shelter. Poverty is being sick and not being able to see a doctor.
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