Mindfulness and Your Money Mindset
If you’ve searched online for ways to create wealth, you’d probably get a bunch of results that are get rich quick schemes or people asking you to pay them to teach you to create wealth. We won’t go into too much details on the philosophical difference between making money or creating wealth. Wealth is the result of your actions whereas money is a tool used to buy things you need and want.
So, let’s create wealth.
Many of us spend to feel wealthy or believe the only way to be wealthy is to win the lottery or make more money. However, wealth isn’t measured by how much you spend or how much you make but how much you’ve saved.
If the ability to spend was used to measure wealth, how many of us would be considered wealthy individuals? Making more money doesn’t lead to wealth either if you’re spending more of your time making money rather than spending time filling your life with joy. It all boils down to our mindset and relationship with money.
Understanding Your Money Mindset
What is your relationship with money? Do you control it or does it control you? Our relationship with money causes us to do a lot of irrational things that take us away from maximizing wealth and achieving our dream lifestyle. Imagine being given the opportunity to receive $1 million. What would you do? If the first thought was to spend on things, experiences or family, you may want to rethink again.
Why do lottery winners lose the money they’ve won? It’s because money controls their life and the continued belief that having the ability to spend is what a wealthy person does. It is not.
1. Envision the life you want to live. It’s often difficult to create a plan to live a life of our dreams if we actually don’t know what it is. Use these questions to help you envision that dream lifestyle:
• What brings happiness into my life?
• If I had no debt or financial obligations, how would I spend my time?
2. Know what your money is doing. A true understanding of how much is going in (income) and how much is going (expenses) to realize your starting point. This can be accomplished through the budgeting process.
3. Create a plan. By knowing where you are today and where you want to be, you can start iron out the details of achieving your personal and financial goals.
4. Action is key. All the thinking and plans in the world won’t help you achieve your dream lifestyle. It takes action and focus.
Truths About Wealth Creation
Having a job does not lead to wealth
This is a belief that’s passed on from one generation onto another. If you define wealth by a steady stream of income via a paycheck then the focus is on climbing up the corporate ladder and planning for retirement through company benefits. Our job, however, are means to pay for our living standards today and used to pay for our lifestyle choices. Majority of the income we make through a job isn’t used to make more money.
Wealth is not measured with material possessions
Wealth is not measured by money. It is not the accumulation of things or even experiences. Wealth is a state of being as you can be wealthy in life without having what some may consider lots of money. How many rich people do we know do not feel wealthy? Wealth is shown in true confidence not overconfidence.
Saving money is not an investment
Saving money is important because it addresses an ingrain habit of spending first and saving later. Saving money is used to make purchases in the future. Whether you’re thinking of buying a new car or saving money to pay living expenses in your golden years of retirement. Savings doesn’t build wealth it’s necessary to secure the planned purchases in the future without requiring debt.
Spend money to make money
One of the biggest fallacies is the idea that spending is investing into the future. You don’t have to spend money to make money but you might need to spend your time or spend resources but you don’t always have to spend money. Do as much as you can without spending cash to achieve the financial goals you’ve set
Debt is not always bad
We hear this often from financial gurus but debt can be useful when it isn’t used to spend rather used to invest. A mortgage or student loan debt can be used as a wise investment into your future. Keep in mind that with any type of investment, it’s important to assess the potential financial returns. However, do avoid borrowing money to keep up appearances.
Failure is a pitstop to success
We don’t have to glorify failure or think we need to fail in order to succeed. The truth about success is the ability to see back into the past with a positive outlook of our situation today. You don’t need to fail in order to succeed but you might fail a few times before you do. When seeking to create wealth focus your energy in positive mental attitude around failure. Deal with them and move quickly. Failure is just a pitstop to success.
Our financial wellbeing is on us
We often rely too much on feeling secure rather than being secure. This causes us to blame our bosses, families and the stock market for our financial woes. We’re responsible for our life and need to hone up. By believing others are responsible for our welfare keeps us in the bubble of inaction and inability. The sooner you change your money mindset the faster you’ll achieve a wealthy existence.