Being rich is meant for you–and it’s within your control. You can embody the confidence of a rich person at this moment, even if you don’t consider yourself as one. Having this “rich mindset” can unlock new opportunities and a new way of thinking. Here’s what a rich mindset looks like and how to build one yourself.
What is a Rich Mindset?
Having a rich mindset is simply seeing the world, and money, the same way a rich person does. Rich people are self-assured and confident, believing nothing can come between themselves and their goals. Ultimately, having a rich mindset is about believing in yourself, even when it feels like the universe is against you.
But having a rich mindset is easier when you have a lot of money. Getting to the point where you’re rich also means adopting a wealthy mindset. When you have a wealthy mindset, you’re focused on doing the little things necessary to build your fortune. For example, saving a bit of your income every other week or automating your finances.
Neither of these two mindsets is particularly better than the other. In fact, it’s better for you to develop both rich and wealthy thinking. That way, you’ll have the confidence necessary to further build your wealth–and the money to back it up.
What does a rich mindset look like?
Rich people spend money to make time
Contrary to the adage, time isn’t money because it’s so much more valuable. Unlike money, which can come from a variety of sources like a job or side hustle, time is finite. That’s why when you’re rich, you spend your money to make time.
For example, you can hire a professional cleaning service every other week to clean your home for you. That frees up time and energy you would’ve used to clean your house for other things, such as a side hustle or simply spending time with loved ones. This is because your time is worth more than the money you’d use to pay for the service.
Having a rich mindset means looking for opportunities
When you have a rich mindset, you’re always looking for opportunities to grow. And this doesn’t just mean growing your finances, but yourself. That’s why rich people travel around the world because they want opportunities to experience life.
That’s also why most rich people invest their money. They look for opportunities and make choices to help them stay rich or grow even richer.
Rich people believe in abundance
Having a rich mindset means adopting an abundance mentality. This means believing that you have a lot of something, like money or influence. When you have this kind of mentality, you tend to act more confidently. This kind of thinking has many benefits–like feelings of satisfaction and gratitude. That’s also why rich people tend to be generally happier.
Being rich means being able to take risks
When you’re rich, you have a financial safety net. Unsurprisingly, rich people feel more comfortable taking bigger risks without fear of financial repercussions. For example, investing in volatile yet potentially lucrative options like cryptocurrency and startup business ventures.
Rich people connect with other rich people
You will always attract like-minded people. With a rich mentality, you’ll attract other rich people to network with and expand your circle. These people could be your business partners, mentors, and even lifelong friends.
How do you build a rich mindset?
Increase your earnings
Having a rich mindset is much easier if you’re rich. That means your goal will be to make as much money as possible. This can be done in multiple ways, like starting a side hustle or getting a higher-paying job.
If you want to be considered “rich” these days, you’d have to earn about $300,000 annually. However, you can always start building your rich mentality regardless of how much money you take home.
Save and invest consistently
You can’t be rich if you don’t have any savings. It’s good practice to save consistently, even if you’re not saving for anything in particular. For all you know, there might be a big investment to be made, and your savings can be your seed money.
The same goes for investments. By investing consistently, you’re growing your fortune and net worth over time. Some investments, like buying gold, can also be used to protect your wealth from inflation.
Build your emergency savings
Before considering investing, you want to have a comfortable emergency fund first. This is a savings fund entirely dedicated to emergencies or loss of income. That way, you’ll have enough money to help you stay afloat while you get back on your feet.
The average American household’s expenses amount to about $5,500. This would mean an emergency fund of $30,000 would be a good baseline for your emergency fund.
Avoid unnecessary debt
Unnecessary debt is the enemy of a rich mentality. When you have debt, you’re more focused on paying it back than using your money to grow your money. Debt can limit your investment options, eat into your budget, and prevent you from taking certain opportunities.
If you are in debt and in the process of paying it off, don’t worry! There are plenty of strategies you can use to get out of debt as soon as possible.
Cover your assets
To build a rich mentality, you’ll want to cover your assets. This means protecting your wealth from accidents and potential disasters. Having car insurance, an established emergency fund, and even owning a bank account are examples of covering your assets.
Avoid the Diderot Effect
The Diderot Effect is when you make a purchase, and it spirals into buying even more things. For example, you buy a fancy new coffee maker. But then, you want a matching coffee mug. Then, you buy more exotic coffee beans.
All of these little upgrades add up to a big bill. If you do this too much, you might not be rich anymore. Having bad spending habits isn’t having a rich mentality!
Focus on your own finances
It only takes a minute of scrolling through your Instagram feed to make you feel insecure about your finances. If you want to build a rich mentality, you’ll also want to stop comparing yourself to others.
Everybody is on their own financial journey. The only person you’ll want to compare yourself to is who you were yesterday.
Practice gratefulness
One of the key traits of having a rich mentality is being grateful. Because you believe you are already rich, you’ll see anything else you receive as a cherry on top. Not only does it help you be less stressed financially, but it’ll also improve your overall quality of life.
Additionally, being thankful, more often than not, also attracts more money.
Read books
Money books can give you some specific financial advice that you may not be able to get elsewhere. More often than not, these books are written by financial experts with tried-and-tested strategies. What better way to become rich and build a rich mindset than by learning from the rich?
Join the Money Squad
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