I think we all have our preconceptions about wealthy people: they get tax breaks from the government, or they inherited a bunch of money from a distant relative.
Whatever the reason, many of us think that building wealth is meant for a certain type of person.
But what I’m here to tell you is, wealth isn’t always just about a number. It’s about something all of us can learn how to develop, but for some reason choose not to.
And that thing is MINDSET. So in this article, I plan on going over why mindset is the #1 thing that separates the wealthy from everyone else.
I will also be breaking down the 5 myths about creating wealth, and the ways you can work on changing your mindset about wealth.
Wealth Starts With Having The Right Mindset
When it comes to building wealth, wealthy people believe that it can be done.
They’re always looking for ways in which they can create more wealth regardless of the situation. Instead of saying “I can’t”, they say things like “how can I.”
See when you use the world can’t, your brain shuts off and doesn’t search for ways to be creative.
But when you use words like “how can I,” the creative part of the brain starts to become more active.
Those who are not wealthy, don’t believe it’s possible to create the amount of wealth that can gain you the freedom you’re looking for.
We come up with excuses as to why it can’t be done, instead of looking for ways to make it happen.
I mean if you think about it, you could come up with a reason to not do anything in life. The divorce rate is over 50%, yet you still see people getting married.
Being a parent is tough, but you still see people having kids learning how to be the best parents they can be.
So why would you count yourself out from creating the type of wealth that would allow you to enjoy life the way you want to?
That’s because you’ve probably listened to all the negative things about creating wealth. So much so, you’ve developed myths about it.
5 Myths About Creating Wealth
1. Most wealth is inherited
We all tend to think that wealthy people are just given the money they have. When in reality, most of them actually worked for it.
According to Dr. Tom Stanley, author of the book “The Millionaire Next Door,” only 20% of millionaires inherited their wealth.
The other 80%, are first generation millionaires. They were able to work, save, and live within their means which helped them generate their wealth.
Also, it didn’t happen overnight.
So many of us look for ways to make quick money. But wealthy people know that money that is generated legally, is never quick.
They understand what it means to manage money in order to generate life changing wealth.
2. You have to be wealthy to invest
One thing that holds many people back from investing is thinking you need a lot of money to get started.
Of course the more you have to invest, the bigger the potential return on that investment.
But one reason why you shouldn’t let that stop you is, you want to at least get into the habit of doing it.
Investing is one of the best ways to increase your wealth long term.
Also, it doesn’t take much to get started. Start off with a couple of hundred dollars, and increase it as you go.
The worst thing you can do when it comes to investing, is not getting started at all.
3. You have to be lucky to build wealth
This type of thinking is just a way for people who haven’t gotten to where they want in life, to put the focus off of them.
Is there some luck involved in the success wealthy people have in their lives?
Sure. But many times luck comes from putting yourself in a position to receive such luck. Also, luck is about perspective.
If you live in the United States, some could argue that you’re lucky to have been born there.
Building wealth takes a lot of sacrifice, discipline, and focus. Is there some luck along the way, sure, but it’s not the main factor.
Most people aren’t willing to put in the work that it takes to build wealth.
4. I don’t make enough money
We would all like to think that if we made more money, we could start to make moves to building wealth.
But somehow, when more money is put in our hands, it’s never seems to go towards helping us build wealth.
You see, the issue isn’t you don’t make enough money. The issue is that you lack the knowledge and discipline needed to create wealth.
Once you start to understand how important it is to make wealth building a priority in your life, you will start to take the necessary steps towards this goal.
5. You have to make risky investments
If you plan on being successful in anything you do in life, there is some level of risk that must be taken.
But when it comes to building wealth, many think you have to put all your eggs in one basket, and hope to strike it rich.
When in reality, wealthy people take measured risks. They don’t blindly put their money into an investment and hope for the best.
They analyze each investment, and make sure the reward is worth the risk. Of course each person has their own tolerance for risk.
If you’re someone with a family, that is something that needs to be taken into consideration when analyzing an investment.
Also, investing doesn’t always have to do with money. You can also invest in yourself through education.
Making sure you learn about the tools that can help you build wealth. Which is why wealthy people continue to find success in what they do.
They are always reading up on ways to help create more wealth, while everyone else find ways to make themselves poorer.
How Excuses Are Causing You To Not Take Action
Excuses are great at getting us to not take action in life.
Whether it be trying to ask a person you like out, or making a phone call to a friend we haven’t spoken to in a while.
Regardless of the situation, excuses can stop us from doing things that can change our lives for the better.
So when it comes to building wealth, the myths that I listed above are just 5 of the many excuses we use to not build life changing wealth.
Instead of taking action, we complain about how other factors are the cause of our financial stress.
That’s why it’s important to make money an integral part of your daily conversations. Even though many consider it taboo.
Those that aren’t afraid to talk about money, are usually the ones coming up with ways to create it.
How To Work On Changing Your Mindset
One of the ways I was able to change my mindset on building wealth was by reading.
Back when I was in college, I always had this feeling that I didn’t want to work for someone. But because I lacked knowledge, I couldn’t really articulate why I felt that way.
After I graduated, I read a book called “Rich Dad Poor Dad” by Robert Kiyosaki, and it changed everything for me.
After reading it, it answered all the questions I had about education and 9 to 5 living. From there, I knew I wanted to be my own boss.
I just had to figure out how to do it.
Ever since reading the book, I consumed whatever I could that would teach me how to find the financial freedom I was looking for.
So if you’re someone that doesn’t believe it’s possible to create wealth, I suggest reading books or listening to audio that will motivate you to make your dreams a reality.
Also, make sure you surround yourself with like minded people that are searching for the same things.
They say you are the average of the 5 people you hangout with. If 5 of your closest friends are broke and insecure, more than likely so will you be too.
But if they are goal driven individuals, more than likely you will be as well.