Content of the material
- They think about themselves first
- TAKE BACK CONTROL OF YOUR HOME LIFE
- Avoid Fees at All Costs
- What is a wealth mindset?
- Salary Isn’t the Whole Story
- 5) How to Become a Millionaire By Practicing “Mind-Storming” on Every Problem
- They can size anybody up in an instant
- 8. Use other people’s money
- 2. Invest for the future today
- 3. Take action instead of relying on luck
- 5. Don’t be afraid to fail
- 3) Gaining Financial Independence Using The Magic Wand Technique
- 10. Progress equals happiness
They think about themselves first
Before giving large sums of money to charities, they make sure they help themselves first. They did not get rich and stay rich by helping everybody carelessly. When they do something, they know what’s in it for them. It’s not selfishness, it’s staying rich.
TAKE BACK CONTROL OF YOUR HOME LIFE
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Avoid Fees at All Costs
Fees can easily eat away at your wealth. Whether it’s a late fee on a credit payment, a foreign transaction fee from using a debit card abroad or an overdraft fee on your checking account, it’s important to avoid incurring unnecessary fees. “Wealthy people understand every fee they pay means less money in their pockets,” said Taylor Schulte, CEO of Define Financial in San Diego.
What is a wealth mindset?
If you dig deeper into the stories of wealthy people, you’ll notice a pattern:
Rarely will a wealthy person be able to boil down their success to a single miraculous moment. Instead, they’ll cite their mindset as the biggest reason for their prosperity.
A wealth mindset is a set of beliefs, habits, and behaviors that separates the wealthy from the rest. A wealth mindset will guide you to make the most of the money you have.
But it doesn’t come easy. A wealth mindset means spending less, making wise investments, and looking for ways to improve financial standing with minimal risk.
The good news is that with a little dedication, anyone can develop this mindset.
Salary Isn’t the Whole Story
Climbing the corporate ladder will only get you so far. At some point, you reach your earning potential and plateau. The rich know that in order to grow wealth, it’s important to make your money work hard for you — not the other way around. In fact, Robert Kiyosaki, author of the No. 1 best-selling personal finance book, “Rich Dad, Poor Dad,” built his entire money philosophy around this concept. Generating income from passive rather than active income sources is the best way to do this. Investments that yield passive income include dividend-paying securities, rental properties, profits from a business you do not directly manage on a daily basis, and royalties on creative work or inventions.
5) How to Become a Millionaire By Practicing “Mind-Storming” on Every Problem
Perhaps the most powerful method of stimulating creative thinking is called “mind-storming,” or the 20-idea method.
More people have become wealthy, including me, using this idea more than any other method of creative thinking ever discovered. In fact, this technique alone could enable you to gain financial independence.
The method is simple…
Take any problem or goal that you have and write it at the top of a sheet of paper in the form of a question. For example, if your goal is to double your income over the next 12 months, then you would write, “How can I double my income over the next 12 months?”
You then discipline yourself to write at least 20 answers to that question. You can write more than 20 answers if you like, but you must use your discipline and willpower to write at least 20 answers.
They can size anybody up in an instant
Rich people are always solicited by average people, who always come to ask them for something. After a while, it becomes easy for them to evaluate people. It’s a matter of practice!
8. Use other people’s money
The rich are not scared to take on debt recognising leveraging other people’s money is one of the fastest and most successful ways to grow your wealth.
2. Invest for the future today
Most people think that money won’t make itself… Or will it? Compound interest is a process of growth that allows your invested money to grow exponentially over time.
Compound interest occurs when you earn interest on interest. Each year your money is invested, you’ll earn a percentage of interest on the total amount of money in the account, which includes the amount you made last year.
The longer you allow your account to grow, the more money you will make in return
In 1994, Bill Gates was worth 9.3 billion dollars. Fast forward to 2014 and the man was worth 81.6 billion dollars.
This nine-fold increase in wealth wasn’t fueled by Microsoft sales alone. It was powered by Bill Gates investments manager Michael Larson.
Investing money is a fundamental strategy amongst wealthy people—and you don’t have to do it alone. Learn how to invest or look for help. There are plenty of accomplished and trustworthy advisors out there.
The bottom line? Letting all of your savings sit idle in a bank account is a big mistake.
Candy bars used to be 5 cents a pop. Today, you’d be hard-pressed to buy a Snickers for less than a dollar.
The sustained increase in prices over time for goods and services is called inflation. It decreases the purchasing power of money as time goes on.
If your investment strategy is to leave your money in a savings account for years on end, your nest egg will be worth a lot less when you’re finally ready to use it.
Instead, weigh your investment options. Common methods of investing include 401ks and Roth IRAs.
A 401k is a retirement plan that you can invest in yourself or through your employer. Either you put money in it each month yourself, or a small portion of your paycheck is taken out each pay period and invested in the stock market. Employers can match your contributions, and your money will continue to grow until you decide to access it in your golden years. Because contributions are made on a pre-tax basis — the money you put in can reduce your taxable income for that year — you will pay income tax on it when you pull the money out.
Another option is a Roth IRA, funded by after-tax dollars. So, when you pull this money out, you don't have to pay any tax, but you cannot reduce your taxable income in the present.
A wealth mindset can help you seek out the best investments for your needs. After all, who doesn’t want to make money while they sleep?
3. Take action instead of relying on luck
While ‘average Jo’ waits for his lotto numbers to come up and prays for prosperity, those who aspire to greatness are busy solving problems.
There’s more money to be made coming up with answers to life’s challenges than waiting to be bailed out.
Rich people don’t expect Lady Luck to pay them a visit; instead they’re aggressive and fearless in their pursuit of wealth.
5. Don’t be afraid to fail
Although it’s not uncommon to fear failure, Robbins has a different take on it. “Unfortunately, we’re programmed to fear this thing called ‘failure,’ so we try everything we can to avoid it, which is pointless,” he told Success magazine. “Failure is often necessary for real learning to occur.”
This is a mindset that can absolutely be applied to both life and finances. No one is perfect when it comes to money, and sometimes making money mistakes allows us to learn and progress. The same is true when it comes to life and happiness. You’re not going to have a perfect day every day, but life’s failures can sometimes lead to life’s greatest successes.
So, welcome failure. Otherwise, getting lost in it and feeling sorry for yourself could prevent you from succeeding in the future.
3) Gaining Financial Independence Using The Magic Wand Technique
Practice the exercise of fantasizing on a regular basis. Sometimes this is called the “magic wand technique.”
Imagine that you have a magic wand and you can wave it over your current situation or problem. Imagine that as a result of waving this magic wand, all the obstacles are removed from between you and your financial goals.
10. Progress equals happiness
It’s natural to go through periods of feeling stuck in life. However, that could be a great sign that it’s time for you to break out of your comfort zone and try new things. “What makes us feel alive is growing, and when we grow, we have something to give,” he told The New York Times.
If you want to be happy, but you’re having a tough time in life due to personal or financial issues, it’s important to take whatever steps possible — even small ones — to progress and grow.
Take a small step to make things better. Save a little bit of money. Put your first dollar into investments. Use any windfall or extra money to do something nice for somebody else. If you feel stuck and unhappy, remember what Robbins said: “Progress equals happiness.”