CHAPTER THREE | WEALTH LIMITING ATTITUDES
It's not your fault if you are born poor but it is your fault if you die poor. In the middle of difficulty lies opportunity. - Albert Einstein
I've met some brilliant business people in my time, but some of them will never be billionaires because they never act on those brilliant ideas. - Donald Trump
Whether it was inherited or eked out, making money requires some level of expertise to achieve. There's also the element of keeping the made money.
The mindset is where the victory is first won before it actually materializes.
To successfully make money, one must learn to control one's thirst to spend money especially without a plan. Business requires discipline to succeed in it.
Your Mindset
Who you are on a day-to-day basis comes from your mindset. Your mindset is the view you have of your qualities as well as your response and interpretation of situations.
The view you adopt of yourself profoundly affects the way you lead your life.
Your mindset is rooted in your beliefs. Your beliefs can limit your potential or enable your success.
If you believe that you need to work very hard to make ends meet, your thoughts will be structured by that belief and you will act on it. People with such mindsets are desperate for jobs and usually settle for any job that puts food on the table.
Your mindset marks the difference between excellence and mediocrity. It's also influences your self-awareness, your self-esteem, your creativity, your ability to face challenges, your resilience to setbacks, your levels of depressions and your tendency to stereotype, among other things.
There are two extreme types of mindsets:
The Fixed Mindset
This is when you firmly believe that you are who you are, period. No room for change (or growth).
The Growth Mindset
Growth mindset comes from the belief that your basic qualities are things you can cultivate through effort.
Carol Dweck describes people with a growth mindset as those who think of talents and abilities as things they can develop - as potentials that come to fruition through effort, practice and instruction.
A fixed mindset creates an urgency to prove yourself over and over. Criticism is seen as an attack on your character and to be avoided.
A growth mindset encourages learning and effort. Criticism is seen as a valuable feedback and openly embraced. The hallmark of the growth mindset is the passion for sticking with it, especially when things are not going well.
A growth mindset is a starting point for change. It doesn't mean you have to be working hard all the time, it just means you can develop whatever skills you want to put the time and effort into.
The group mindset believes people get smarter and they do so by stretching themselves and taking on challenges.
Money Mindset Myths
1. A penny saved is a penny earned.
In addition to saving, you must also multiply money you're saving to truly feel the effects. Saving money is good but you also need to earn more.
2. I don't need money help
Investing in a money coach will lead you down a safer road lined with superior choices, better decisions, and ultimately, a finish line you'd probably never reach alone. Invest in a money coach and train for financial success.
3. Budgeting saves me money
You can record your pluses and minuses all day, but if you're not acting on what you write, your budget means nothing. Carefully plot and plan, then follow through on your budget to see optimum success.
4. If I earn more, I can spend more.
Stick all your extra earnings in a special fund or savings account, then leave it there and watch it grow, rather than disappear.
5. If I don't risk it, I can't lose it
Playing a smart financial game means taking intelligent risks. You'll never make a mint if you don't make smart investments.
Know a good investment when you see it, and be smart enough to make it.
6. I make enough
Assets determine your worth if you want to grow your financial portfolio, you must find a way to start saving and investing.
7. My today is taken care of
Right now is when it's essential to plan ahead. What will your reserves be like as you head into retirement? Not putting away what you can now is a near guarantee that you won't have enough when you need it in the future.
Discipline, planning and financial consciousness are keys to achieving healthy money management.
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