scorecardresearchHow to develop a wealth mindset? Here are 5 ways

How to develop a wealth mindset? Here are 5 ways

Updated: 13 Feb 2023, 02:06 PM IST
TL;DR.

In this article, we will tell you about five life-changing mindsets you need to know to create wealth for you and your future generations.

If you want to be the person who upgrades your family’s financial status, you need to work on the mindsets first.

If you want to be the person who upgrades your family’s financial status, you need to work on the mindsets first.

When it comes to money, almost everyone is thinking about it and working to earn more. But, only a few sets of individuals are rich and wealthy, and many are on their way. If you also want to be the person who upgrades your family’s financial status, you need to work on the mindsets first.

You must give yourself exposure to all the opportunities that can make you rich. Here are 5 financial mindsets which help you in taking the first step towards richness:

Buying assets, not liabilities

The idea behind this principle is that by acquiring assets, you can build wealth over time and become financially independent, while liabilities create additional expenses and can lead to financial difficulties. To put it simply, you want to own things that put money in your pocket, not things that take money out.

Take calculated risks

Rich people are more obsessed with taking calculated risks and booking the opportunities that they can grab at the peak of time. But, the only thing that a good mindset needs to improve is taking calculated risks. As a poor mindset, we miss out on opportunities by being too conservative when it comes to investing.

Focus on earning passive income

Rich people work towards generating income sources in which they do not have to spend a significant portion of time after a period. Passive income sources like dividend yield investments or rental income. If you also want to become rich, you build a portfolio (professional and investment-related) in a way that requires less active time.

Understand leverage

A chef in a reputed restaurant is not handling everything from managing the kitchen to cutting vegetables and serving them to the customers. A chef will do what he or she is good at, i.e., cooking. Similarly, learn how to leverage delegation. Do what is not done by others or requires particular expertise. Everything else can be delegated to others with relevant skills. It helps in saving time for upskilling yourself to earn more.

Outcome-based decision

When you talk about finance, rich people never make any financial decisions on the basis of a relative’s advice or under the influence of emotions. If you want to become rich, you should start learning how to make calculated financial decisions.

For example, buying a car should be based on a balance of emotional reasons, i.e., favorite model, and financial reasons, i.e., it is economical for you, wouldn’t take a lot of maintenance charges, and is comfortable according to the region you live in. It can be done by making comprehensive comparisons between similar car models.

Conclusion

From the above-mentioned points, we can conclude that there is nothing unique about being a follower of X when everyone is pursuing Y. It’s all about your own mindset acting as a hurdle to the path of being rich.

For example, when you train your mind to go to the gym from tomorrow, no matter what, only a few of you get out of your comfort zone, hit push-ups, and follow a strict diet rule. Similarly, when you get out of your comfort zone and understand what the world has to offer, getting rich becomes an easy task for you.

Anushka Trivedi is a freelance financial content writer. She can be reached at anushkatrivedi.com

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First Published: 13 Feb 2023, 02:06 PM IST