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The Power of a Wealthy Mindset

A wealthy mindset helps you grow wealth and achieve your goals. Here are some of the traits needed to grow wealth and create the life you want.

Is becoming wealthy one of your financial goals?

Or have you completely dismissed the idea of wealth because it seems unattainable?

There are typically one of two beliefs people have when it comes to building wealth: those that know without a doubt that they’ll reach their goal eventually, and those who laugh at the idea of getting out of debt, let alone accumulating retirement savings.

You probably see where I’m going with this: wealth is a mindset. You either fall on the scarcity side of “just getting by,” or you fall on the abundance side of “there’s enough to go around, and I’m going to have a piece of it.”

I’ve been in both places, and I can tell you that the abundance mindset is going to get you further in life than the scarcity mindset, even if it can be more difficult to get into.

Are You Nickel and Diming Yourself? (aka the scarcity mindset)

 

Most of you know that frugal isn’t synonymous with cheap. Frugal living is about being smart and intentional with your money. Cheap is all about functioning from a scarcity point of view.

For the first few years of my adult life, I was pretty darn cheap (as much as I hate to admit it).

I learned this perspective from my parents. They simply never had enough. When I was growing up, they were in debt, and any emergency expense that came up threw them for a loop. There was never enough money to go around, and tough times were scary.

I didn’t have it nearly as bad as others, but the fact remains – I thought that money was hard to come by, even if you worked hard.

My first full-time job paid $12 per hour and no matter how many times I interviewed for higher paying jobs, I was met with “You don’t have enough experience.” I thought I was destined to make a low salary the rest of my life.

As a result, I nickel and dimed myself to death. I did whatever I could to save moneyout of fear. It wasn’t a happy place to be in. If I went a few dollars over in a budget category, I berated myself for it. Saving was that important. I didn’t think I’d get ahead otherwise.

Unfortunately, this caused me to miss the big picture. You can’t cut back constantly while also hoarding your money. That’s not what life should be about, and you’re never going to focus on building wealth if you’re stuck on the little things.

Moving From Scarcity to Abundance

 

The biggest shift in my mindset came as a result of switching to working for myself. I didn’t have to deal with the “You’re too inexperienced for this!” line anymore. Thanks to my blog, I had plenty of proof I was capable of writing.

One of the best parts of being a freelancer is being able to set your rates and determine what you (and your time) are worth. I began to realize the time I was spending clipping coupons and trying to find a better deal elsewhere was much better spent on earning more.

Of course, there are a lot of objections to this. Getting started as a freelancer or small business owner isn’t easy. You have to work your way up. It takes time.

That’s all true, but the biggest difference you can make in moving from scarcity to abundance is realizing how many opportunities are out there. I already spoke about how hard work is going to get you places, not necessarily luck. A few people commented that luck is simply being prepared for opportunities – and that is critical.

I know some people who wall themselves off from opportunity before it even has a chance to happen. They just don’t think they’ll get that job, or they don’t see themselves ever making over a certain amount. It kills me to watch people limit their potential.

Limiting Beliefs Will Drain Your Wallet

 

Let me ask you a question: Do you think fear is one of the traits practiced by millionaires? Do you think they let limiting beliefs or self-fulfilling prophecies take over?

Maybe at one time, they did. No one is perfect. The point is, they didn’t get stuck there. They powered through.

There’s genuinely no secret to wealth. If you’ve read The Millionaire Next Door, you know that most wealthy people got to where they are with hard work. They started their own businesses and made smart decisions with their money.

So…why not you? There’s no special gift you need to possess to become wealthy, except maybe common sense. If you’re reading this, I’m pretty sure you’re already in possession of that!

The worst thing you can do for your money, and your life overall, is to impose limiting beliefs upon yourself. Don’t get stuck in analysis paralysis. Don’t let yourself get caught in a sea of jealousy, wishing you could be so lucky as others. Don’t doubt that you’re capable of whatever it is you want to achieve.

Instead, believe in yourself. Educate yourself. Start taking action. Sooner or later, you’ll find yourself viewing the world from an abundance mindset. You’ll realize that wealth is attainable for you. Maybe you’ll start by realizing you can make a healthy retirement a possibility.

A wealthy mindset helps you grow wealth and achieve your goals. Here are some of the traits needed to grow wealth and create the life you want.

Get Into the Wealth Mindset

 

I hate to say it, but there is enough to go around because there are so many people who aren’t taking action. Getting into the wealth mindset takes work, and it’s not for everyone. But that means there’s more for you when you decide to get on the ride.

Switch your mindset to earning more and being open to opportunities, and let go of nickel and diming yourself. Focusing on value is smarter and better for your wallet in the long run.

 

Have you ever dismissed wealth as not possible for you? Was it difficult to switch from a scarcity to abundance mindset? Or have you always been in the wealth mindset? What advice would you give to others who don’t think they can grow their wealth? 

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Erin M. is a personal finance freelance writer passionate about helping others take control over their financial situation. She shares her thoughts on money on her blog Journey to Saving.

12 Comments

  • Jason B says:

    My mindset has changed for the better within the last 3 years. Before then I had a lot of negative thoughts that I shouldn’t have had about money.

  • Richard says:

    I used to think that they only way I was ever going to be able to be financially free was if I came up with some killer idea and sold it for millions, or if I launched some kind of product that went viral and sold millions, making me rich forever. But when you look around at how the majority of people spend money that they don’t have, and buy things that they don’t need, it’s easy to realise how that very mindset is what stops people from saving enough to live with all the perks of being financially free, but without having to invent some killer idea. 2016 is the year when it is all starting to happen for me.

  • Growing up that way, you can feel pretty hopeless. I understand things from that perspective because living it day to day is basically like a disease plaguing your mind. However, there is a turning point when you experience hope and then start believing things can turn around for you. That’s the beginning of building a wealthy mindset.

    • Erin M says:

      Yes! It sounds silly, but when I started blogging and discovered early retirement blogs, it all started becoming clear to me. You don’t need to come from a “wealthy background” to be financially secure. That was a huge turning point for me.

  • Chonce says:

    I love this Erin! It took a lot for me to change my mindset from scarcity to abundance but it has played a huge role in everything I’ve been able to achieve financially thus far. While it’s easier said than done, changing your mindset can do wonders for your situation.

    • Erin M says:

      It really, really can. Having those limiting beliefs does you no good. It’s much better to focus on abundance and all the opportunities available to you.

  • We should have contributed more to retirement while paying down debt. Though in my defense, my husband was on unemployment for most of the time (and I was on disability), so we had to throw everything we could at the debt. Just in case we were left with $800 a month (and $700 debt).

    I still exist too much in the scarcity mindset. I prioritize other debt/savings goals above retirement because I don’t feel like we have enough to go around. I’m trying to make myself focus on retirement this year and put it ahead of most things.

    • Erin M says:

      I am SO right there with you, Abigail! I’ve had a really difficult time prioritizing saving for retirement even though I know it’s the smart thing to do. With my student loans staring me in the face, it’s really hard to think past that. But I’m making strides, and I fully plan on contributing more once my loans are paid off later this year.

  • Nice article Erin! I love that abundance mindset and am planning to change my mindset into that one. I know that it takes hard work and it really is challenging, but I am ready and willing to achieve it.

    • Erin M says:

      Thanks, Jayson! I think you’ll be able to get into the wealthy mindset no problem. Anyone reading personal finance blogs is certainly capable of it.

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