So much of success in life comes down to mindset. This isn’t to say that you can get everything you want just by hoping enough or thinking right. However, it does mean that when a right mindset leads to right action, that action is often rewarded.
Many of us struggle to adopt a meaningful, rewarding mindset when it comes to money. The right money mindset means that we’re able to manage our finances effectively and grow our wealth. You could call this a “millionaire mindset.” After all, you have to be pretty savvy with your money to join the millionaires’ club!
Here are just a few key elements in a millionaire mindset that anyone can adopt to improve their financial situation.
6 Steps in Cultivating a Millionaire Mindset
1) Account for Every Cent
Effective money management makes sure that you always know where your money is going. Millionaires are never unsure about their budgets. They have a proper place for every dime of their paycheck. Saving, spending, investing: they know where it goes. If you want to use your money most effectively, start by knowing where it goes. This will allow you to see (and trim) the fat in your budget, while better allocating what you have.
Millionaires don’t subtract their expenses and then spend the rest of their money willy-nilly. Every bit of what they make has a specific, intentional purpose that builds their wealth.
2) Be Solution-Oriented
We all share a temptation to be problem-oriented. We tend to see what could go wrong versus what we can do to manage risk and tackle these issues. A solution-oriented mindset creates a motivation and enthusiasm for solving problems, overcoming adversity, and pushing through to find success despite the odds.
We must think in terms of what we can solve and what can be done — seeing problems, even failures, as opportunities.
3) Make Your Money Work
The only way to really grow your wealth is to make your money work for you. Invest! While there are many ways to invest, you know that I’m an advocate for passive real estate investment. Not only has REI Nation, our family-owned company, seen the success of thousands of investors, but we ourselves see and experience how our model works to build wealth. Naturally, there are other ways to make your money work — stocks and bonds are perhaps the most popular.
However, I truly believe that investing in real estate is the best way to build long-term wealth!
4) Fix Your Relationship with Money
What kind of relationship do you have with money? You might not think about it too often, but some of us have an unconscious, unhealthy relationship with finances. This can manifest in things like shopping addictions or avoidance. It can create a lot of stress and anxiety. It can even impact how we do business! If you think getting rich is synonymous with stepping on others on your way up the ladder, you probably have an unhealthy relationship with money — not to mention the other people around you.
Start with some introspection to see if your relationship with money is on the right track or if it’s missing the mark.
5) Know What Drives You
Purpose is important. One of the questions we ask new investors at REI Nation is what their goals are. We invest with intention and purpose. In the same way, have a purpose and a goal for your finances. What are you working for? What is it you want from your money? Financial freedom? Stability? A great retirement? Caring for your children or your aging parents? These are all goals worth considering and focusing on as you grow your wealth.
6) Invest the Time
Millionaires know how important their finances are. Just as, in the beginning, I mentioned that they know where each paycheck goes, they also plan for the big picture. They invest time in financial planning and in financial advisors. They don’t waste time. Instead, everything they do is done with a goal and with intention. You won’t see a millionaire wasting hours on a Netflix binge — you’ll see them putting themselves (and their money) to work.
In what ways are you thinking like a millionaire? Share your strategies in the comments.