Attaining wealth is hard and requires real effort. Below are ten tips to help you develop a wealth mindset based on our client and personal experiences:
1. Wealth is Fleeting
As they say, “easy come, easy go”. Too often we have seen people lose wealth just as quickly as they earned it. Look at those that invested in GameStop (GME) at its highs or other investing fads to see this. Those that typically attain wealth do this over time with great consistency and purpose. Rarely is wealth attained overnight and even more so is it kept if it comes quickly. An interesting study on Lottery winners has shown that it is far harder to keep wealth than it is to earn it.
2. Aim to Have Just Enough
It can be very frustrating trying to earn a specific number before you feel comfortable about retiring. Working with a financial planner can instead help you quantify the “just enough” amount so you can retire. There is so much more to life than just chasing wealth and do not lose sight of other priorities in life.
3. Develop Wisdom and Knowledge
Many wealthy individuals have several common traits. Studies have shown that most millionaires are lifelong learners and voracious readers. They constantly are committed to learning new things, growing, and improving themselves through reading and experience.
4. Have Active Hands
One of my favorite quotes growing up was from my grandfather who said, “Idle hands accomplish nothing”. The meaning of this phrase was to encourage me to find hobbies and pursue passions. According to a study by A.C. Nielsen the average American watches 4 hours of TV a day. This means most people work and then go home to watch TV. Watching TV is not inherently wrong, but those four hours can be spent to increase your health or wealth. Many individuals that have accumulated wealth often have hobbies where they create something. This could be in music, creating art, writing, or fixing cars. But there is a strong correlation between having wealth and having hobbies that stimulate creativity.
5. Don’t Be Fake
In today’s society, it is heartbreaking to see how many people pretend or try to portray that they have wealth. Just go to Instagram and you can see the fake pics taken next to cars they do not own or pretending to be on private jets. Do not be discouraged by the fake perception others have. Remember that life is like a book and do not compare yourself to someone else in chapter 20 when you are on chapter 5. Take time to unplug from social media and remember to take care of yourself.
6. Be Thoughtful About Debt
It is important to try and have as little debt as possible because not having debt provides tremendous freedom and joy. Having debt is like being a prisoner until that debt is paid off. We are not saying that all debt is bad, but just be smart in how you handle your debt and have an emergency fund for those unexpected expenses.
7. Save Constantly
You cannot build wealth unless you are saving. The earlier you save and the larger amount you save the faster you will build wealth. It should go without saying as it is impossible to attain wealth without saving.
8. Change Your Mindset
Most people work similarly with money. They spend first, save second and give (if at all) last. Many wealthy individuals I have worked with have the exact opposite mindset. For them, the mindset is either save first and then spend or often it is giving, saving, and then spending. Develop that mindset by creating healthy financial habits and instill good financial habits into your kids at a young age.
9. Be Generous
The most charitable people I know are also the wealthiest. Psychologically this does not seem to make sense. You would think of the rich being like Scrooge McDuck and only thinking of themselves first. While there are certainly some wealthy people that have this mindset, the majority of people that we work with are generous people and love to share knowledge, time, and resources for the greater good.
10. Be Satisfied
If we do not take for granted what we have and enjoy the small things in life, then life becomes more enjoyable. Being satisfied also helps us to keep things in perspective and not lose sight of what is important. Remember happiness is a choice as we learned.
While none of these tips on their own will make you wealthy, hopefully, they can help you to adopt a wealthy mindset, and this will be a valuable resource for you in life.
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To say this year has not been normal is an understatement. We are only in August, but it feels like it has been over a year since all this craziness started. Right now, it is normal to not feel normal. No one expected a crisis that would force us into isolation. There is craziness all around us and it would not surprise me if Godzilla or King Kong attack next month the way things have gone. This makes it more important than ever to make sure you take care of yourself. Let’s explore some key things that you should be doing right now.
1. Develop a daily routine
We are all creatures of habit and routines provide comfort and peace of mind. Set a daily schedule and stick to it with the same morning routine to help feel a sense of normalcy. This is especially important if you have kids at home.
2. Get outside
Many studies show the value of vitamin D (sunshine) and how it improves overall health and decreases anxiety and depression. Make sure to see 20-30 minutes a day of sunlight. Take a walk, ride a bike, just sit and relax, but make sure to get some sun!
3. Get some exercise
This can work great in combination with going outside. Pandemic or not, getting to the gym can be inconvenient; online alternatives can be used many times throughout the day and in any room of the house. It does not mean you need to spend a lot of money either. There are great videos on Amazon Prime for free and many workouts can be found online for free (i.e., YouTube or YogaWorks). If you like the idea of a trainer, use an app like FitPlan.
4. Make time for yourself
It is important to have a hobby or take some time to pursue your passions. Spending time doing things we are passionate about energizes us and provides a sense of purpose. What are you passionate about and want to spend more time doing?
There are several connection-based websites. One of them, Meetup, helps members find and connect with other people who share their unique interests. During the pandemic, Meetup began enabling members to meet virtually, which is a great way to form new connections. For instance, users can participate in book-club discussions or test their pipes with virtual karaoke.
5. Finally, unplug
It is important to stay socially connected these days and Zoom suddenly became a household name. However, be careful about how you use social media. Unplugging for a couple of days from it is invigorating and you will find your overall mood and mindset will improve. Take time to unplug from other media and technology as well. Take some time to write, enjoy nature, or start a business. Less social media and more time spent productively (this includes sitting on your porch watching a sunset) provide more fulfillment.