How to Become Wealthy is Easy. Unleash The Millionaire’s Mindset
Almost everyone I know suffered a serious divorce with money. The love affair began turbulently. The engagement went rapturously. Then the separation exploded violently. You can minimize the slings and arrows of a painful financial love affair by following 4 simple rules to become wealthy.
- Change your perception of money. Money is like a person. A person wakes up, takes breakfast then spends 8 hours at work to convert labor into gain. Think of money as a person. Money cannot sleep. It cannot hide under the covers. For money to grow, it must be productive, converting its existence into more assets. This is how to become wealthy. Place money into productive endeavors wherever you can. The bank is not productive. Banks pay your money 1% in interest. That will be eroded by 10% inflation. Change your mindset about wealth and you will become wealthy
- Every cent is a soldier. People get discouraged with meagerly paychecks. Each payday brings a few thousand dollars and it never seems enough to build into a financial empire. The disappointment in never “raking it in fast” short circuits motivation. Rather than grump at the amount you make, set aside 30% of it into a portfolio you promise to keep safe for five years. A friend of mine once worked as a soldier in the army. He would toss a chunk of his salary into a duffle bag that he kept safe. Upon his promotion to General, his portolio was massive and he grew it even more investing it all in mutual funds.
- Every dollar is a step closer to freedom. Okay, so you saved $20 from a McDonald’s Happy Meal. $10 came from opting for the MRT over a taxi. No biggie right?Wrong. Every dollar not expended is yet another inch closer to financial freedom and real wealth. Money has to unreal power to work for you while you relax hence the more of it you have, the faster you’ll be buying that Italian sports can or sending your kids to ivy league schools. Ask yourself “Do I really need this?” Then delay the purchase for 1 day. Your passions will have cooled and the need may have faded away. You’re becoming wealthy passively.
- What will your future self say? Cassandra refused my exhortations to be self-employed and invest in real estate. She said she didn’t want to wait 5 years for a return on her investment- it was more fun to spend money today. Her mind set provided momentary pleasure but severely degraded the quality of her future life. Stop and ask yourself, “if I do this today, will my future self thank me for it?” You will be around for twenty, maybe thirty years. Are you planning straight.
- Dump the products, but the company. Some friends amused me at a recent reunion. They sported Vacheron Constantines and drove flashy Italian thoroughbreds. Notwithstanding the trappings, they griped about their lackadaisical lot in life and how real wealth always stayed out of reach. No matter how much they saved, they remained where they were. The problem stemmed from today’s materialistic drive: keep buying stuff; keep upgrading stuff. Sure it’s pleasurable but the shiny trinket you buy today deteriorates tomorrow. Do you want to be truly wealthy? Then stop investing in the products of other companies. Start investing in the stock of companies themselves. As the companies grow rich, so will you.
Your Action Plan to Wealth
Now that we have the optimal mental keys to financial success. It’s time to take concrete measures to begin building your paved road to monetary independence. Begin here:
How to Become Wealthy with Warren Buffet
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