What is wealth to you?
Is it spending more time with family? Is it not ever being stressed about money?
Building wealth is not something that happens overnight. It is a long road of consistency and dedication. You never hear about someone who got told the secret of wealth and prosperity, followed a step by step guide, and was successful as long as each step was followed exactly.
People build wealth in all sorts of ways. They think about wealth in different ways too. Everyone has their own pathway they must follow to be wealthy. You must find what works for you.
“Teach a man to make a million dollars, and he will spend it up…then be able to make it back. Give a man a million dollars, and he will spend it up…and then be borrowing money from the first man.”
So how do you find what your system is? More importantly, how do you get in the mindset of building wealth for yourself and your future?
These simple steps can help push you and motivate you into starting your wealth building journey.
Feel the pain point
When do most people make a change?
Think about when people make big changes in their lives. Let’s say you are considering changing your cable provider. You usually don’t even think about it until a) the bill gets too high, b) your service starts getting bad, or c) you find another provider with better value.
Many people don’t even consider a change until they are confronted with a pain point.
Think about your pain point when it comes to wealth. What are you not able to do now that you would be able to do if you had more money?
- Would you like to work less so you can spend more time with your family?
- Would you like to go on vacation to another country?
- Would you like to have the time freedom to visit with extended family and stay a few weeks?
- Would you like to remodel your home?
All these things need money and time. If you are wishing that you can be in the position to do something like these, but feel like you can’t because you aren’t making enough or can’t take a break from your job, then you have found your pain point.
Get motivated and inspired
Don’t let this pain point get you down. Instead use it for fuel. Get motivated and inspired to build wealth from others who have done it before.
To get motivated to build wealth, I love looking at income reports from my favorite bloggers and podcasters. Seeing that someone like Chelsea from HerPaperRoute is making over $9,000 a month gets me inspired to build my own online empire.
Forgive past money mistakes
Denise from Get Rich, Lucky B*tch!: Release Your Money Blocks and Live a First-Class Life says you need to forgive yourself for past money mistakes and for views you have about money that are detrimental to you living your best and wealthiest life. Give yourself permission to get rid of the guilt and to deserve money.
Make goals that you can track
Having goals is doing more than just jotting down some ideas on a pad of paper. Goals should be able to be tracked and measured or else how would you know if they are productive.
One great system to set up so you can track your goals and make sure that the proper steps are followed to achieve your goals would be organizing them on a system such as Trello. With Trello, you can make lists and deadlines, as well you can prioritize certain tasks over others.
Create financial goals that are realistic and trackable. Track every penny you make and spend. Once you begin to become familiar with your finances you will be able to manipulate them.
Realize it takes time
You are not just going to wake up one day and be rich. Building wealth is a process. You will have to stay dedicated to achieving that goal and consistently do what it takes to reach it.
Be patient. It takes time to build wealth. Now of course it is always good to analyze what takes the most time vs. what takes the least time when it comes to building wealth. Then you can spend more time on the things that are beneficial for your future instead of wasting time.
Regardless, as long as you have money that is growing and not just waiting on the next paycheck, then you will be in a better position in the future.
Continue to Learn
Knowledge is power. The more you learn about money mindset, saving, and investing, the more you will be able to make educated decisions. Not only that but you will be more confident in making those decisions.
If having money is something that is important to you, you should be knowledgeable of finances and how to manage money. Take classes on Udemy on how to handle personal finances and how to invest your money the right way.
I would also invest in some of these books to strengthen your money mindset:
Grow your money
Getting in the mindset to build wealth, you must switch your mindset from one of scarcity to one of abundance. What does that mean?
When you have a mindset of scarcity you save money, you are afraid of it running out, you are constantly stressed with how little you make or how much bills are. You maybe live paycheck to paycheck or you only take action when there is an emergency. Whenever you get some money in your pocket, it is quickly spent.
When you have a mindset of abundance, you invest your money. You take calculated risks with your money in order to come out with a bigger return. You are not stressed by money because you know you can always make more. You put aside any extra money and invest back into yourself in the form of a 401K, real estate, stocks, or other type of investment that will make residual income.
Are you ready to take action?
The first step into changing your situation is taking some type of action. It doesn’t matter if the action is small like putting aside $20 a paycheck, it is better than doing nothing.
My grandmother saved $20 out of every paycheck she ever got. She put the $20 in a Ritz tin that sat on top of her refrigerator for as long as I can remember. When she passed my mom discovered $17,000 in that Ritz tin. Wow!
Now I am not saying that putting money in a Ritz tin is the best way to save. But it is an example that can show you just how much one tiny action, done repeatively, can make a huge impact.
Tony Robbins once said that even if you entered the stock market at the worst time where stock prices were the highest, even that would be better than never putting money there. Whatever you put in there will compound and eventually increase your wealth over time. If it is just money in your pocket the only way to move is out of your pocket.
Imagine if that $20 a paycheck was put into major companies stock when the stock prices were low. She would be looking at a few hundred thousand dollars when she retired and passing the majority of that onto her children when she passed and contributing to their wealth building.
It’s important to look at the long term when it comes to preparing to get financially wealthy. You must take complete responsibility for your life and finances. You must know where your money is going. Get in the mindset to build wealth.