Here at Forward360 we use a combination of proven wealth strategies, ethical tax minimisation and accounting to help clients achieve the happy, carefree lifestyle they’ve always dreamed of. What we wanted to delve into on this blog are the less tangible ingredients in developing wealth and it all starts with having what is known as the WEALTH MINDSET.
The mindset you choose, and it is a choice, has an effect on every aspect of your life. If you’re sure you want a life of abundance, success, well-being and whatever else you associate with wealth, you have to have the right mindset to achieve it. Why? Because our THOUGHTS DRIVE OUR ACTION and OUR ACTIONS DETERMINE OUR RESULTS.
In this article, we’re going to uncover the secrets and the specific action items we believe you need to know for developing the kind of mindset that can lead you to the wealth you desire and can absolutely create.
Secret #1: Believe You Are In Control
People in a wealth mindset believe they CONTROL AND CREATE THEIR OWN LIVES. Imagine this: you know you have the power to direct your life and you can make the decisions to get there. People with a wealth mindset know life isn’t fair, and the world owes them nothing, but they move forward anyway, believing improbable success is absolutely attainable.
A poor mindset believes “life happens to me.” This lets people off the hook for their circumstances. People throw their hands up and think “why does this always happen to me?” The answer? Because they’re never willing to take big enough action to course correct their previous decisions
ACTION ITEM #1
Set your sights on something you want, and in the next seven days go for it. If you get it, appreciate the steps you took. If you don’t get it, celebrate the effort, and dissect why it didn’t work. Then move on.
Secret #2: Optimise Your Resources
A wealth mindset works toward gaining a surplus. People with the right mindset then use that surplus to ACCELERATE THEIR GROWTH whether that be accelerating their business, their education, their net worth, etc. A surplus is seen as a tool for more growth. A poor mindset believes a surplus should immediately be spent on things they want. They can’t see further than the immediate gratification of consumption.
ACTION ITEM #2
Make a list of things you want in the next 30 days that you can afford. Next, scratch off that list anything you don’t absolutely need. Use that surplus to accelerate your business, education or future wealth.
Secret #3: Develop Your Momentum Building System
A wealth mindset FOCUSES RELENTLESSLY ON MOMENTUM BUILDING WORK that pays off long after the effort was expended. If they’re not doing something to build momentum, they know they’re glueing themselves to their present circumstances. Focus on building revenue streams and systems that create and generate value on their own.
The poor mindset worries about getting paid for the hours they worked. They work an hour, get paid and spend the money. This will keep them on a self-created hamster wheel.
ACTION ITEM #3 Make a chart of where you’re spending your time and money. How much of that will pay off years from now? Shift the “immediate reward” activities into momentum-building systems.
Secret #4: Take Calculated Risks
A wealth mindset is willing to risk something upfront without an immediate reward. They know not everything is a straight line to the payoff. EVERYTHING IS ALL ABOUT RISK VERSUS REWARDS.
A poor mindset wants to immediately know “what’s in it for me, right now?” If the answer is nothing, there is no more discussion. A possible future benefit will never outweigh an immediate risk.
ACTION ITEM #4 Be aware of opportunities for long term rewards. When you’re faced with them, dissect the risks and be willing to get a bit uncomfortable today for a better tomorrow.
Secret #5: Recognise Admiration vs. Resentment
The wealth mindset looks around for the most successful person in the room to admire and even befriend, even if they’re the competition. SEEING THE SUCCESS OF OTHERS IS INSPIRING to them because it proves any success is achievable.
A poor mindset is jealous and bitter at others’ success, wondering how that person “got so lucky.” For these people, life is a zero-sum game and you’ll often hear them say things like “it must be nice.
ACTION ITEM #5
Send an email to someone who is more successful than you. Let them know you admire them and their success. Ask for an opportunity to talk with them one on one and, if that goes well, perhaps a mentorship could form. Make the most out of that one meeting, since it could be a momentum builder for you.
Secret #6: Know That You Are Who You Associate With
The wealth mindset is all about making hard choices about who you spend your time with. There’s a saying, “YOUR NETWORK IS YOUR NET WORTH.” People with a wealth mindset want other people around that will make them better, not drag them down.
The poor mindset loves commiserating. For them, misery loves company, and they are always in good company. Why? It makes it easy to ignore their responsibility for their situations.
ACTION ITEM #6 Take stock of those you spend the most time with. Focus on spending more time with people in a wealth mindset and less with those in a poor mindset. Over time, your net worth will go up in value.
Secret #7: Understand That There Is No Finish Line
A WEALTH MINDSET IS NEVER DONE. They will never think they’ve “made it.” They will look for the next challenge, the next opportunity, the next thing to learn.
A poor mindset has a finite number of dues to put in before they’re “done” and retire. They look forward to doing nothing and enjoying a life of leisure. They may have a distorted sense of entitlement and a lack of ambition.
ACTION ITEM #7
Make a list of things you’d like to do when you’re not working anymore. Choose one or two and start nurturing them today. What now seems like a retirement hobby could turn into something even bigger than what you’re doing now.
Secret #8: Accept Brutally Honest Advice and Be Grateful
A wealth mindset is OPEN TO THE ADVICE OF EXPERTS and doesn’t believe they can do it all. They’re honest about when they need help or are confused by a subject, especially an important one. They don’t stick their heads in the sand. Rather, they stand up straight and say, “I don’t know.”
Successful wealth planning can be confusing and overwhelming. At Forward360, we can help you with:
ACTION ITEM #8
It is sometimes really difficult to get brutally honest advice from friends and family. Book in time next week to catch up with an independent third-party like your business mentor or advisor and start the conversation with “I’d love your advice”. Ask yourself what advice you are seeking, what does your problem involve and what are your desired outcomes and frame your question in that way. For example, if you were looking to expand your business, you might ask your business mentor or financial advisor the following question:
“I’d love your advice. My company is looking to expand. There are several factors that I need to consider and I am not sure if I should do it. Do you have 45 minutes to chat?”. Thank your advisor at the end of the meeting and follow up with an email of gratitude the next day. Let your mentor know you are grateful for their time and let them know how their advice helped you. That is the wealth mindset in action!
At Forward360 we understand remaining successful means staying focused on BUILDING YOUR MOMENTUM. We help our clients build vast wealth by sharing our knowledge, experience and strategies so they can design their ideal lifestyle and protect their future. Request your free consultation with one of Australia’s leading financial planners today, or contact us to schedule your initial appointment. We look forward to building wealth solutions tailored to you and your future.
Financial Advisor. Entrepreneur. Co-founder and managing directory at Forward360, Simon ensures all clients get the financial advice they need to reach and exceed their financial goals — both personal and business.
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