Wealth And Mindset: How Can Your Wealth Grow

Can you really 'think rich and powerful yourself'? I'm here to tell you that not only is it possible, but it's actually also the best chance you've ever had to make a lot of money. Many of us dream of living in a large luxury house in a sunny country, we imagine wearing smart suits that exude power and trust, and we wish we didn't have to make so many difficult choices because the lifestyles we want to lead can not be supported by our funds.

Then you need to make a change if that sounds familiar. And as with ALL things, with you and your mindset, that change begins. If you want to be wealthy, what do you do about it then? And is there any chance that, in fact, you might be going the wrong way?

Wealth and career Yours

In order to become richer, ask the average person on the street what they would hypothetically need to do and 99 percent of them will tell you the same thing: get a better job. All right, fair enough. They're not wrong, so to speak. Indeed, their income will not be hurt by getting a better job, and that in turn will probably mean they will at least get a little richer.

But this is not the whole story, actually. And what's more, this isn't the main part of the story, either. Wealth and salary are not interconnected inextricably. They are certainly related, but only to a small degree. If you wanted to see an equation that tells you how to get rich, it would actually look like this:

Revenue – Outgoings = Wealth

So, let's say your income is solely determined by the amount of money you make at work. You still have another, equally important factor, even in that scenario. Your outgoings are that. If you earn a cool million dollars a month, but you also waste a million dollars a month on lavish holidays and clothes and nights out, then you're not going to be very well off ultimately. Instead, over time, you are likely to lose money.

But if you make a more normal $2500 a month, but you spend only $500, then you suddenly save $2000 a month. You'll have $24,000 saved in 12 months. This is a reasonable down payment on a house! So, you've got two options now. Two ways of getting richer. One is that you are trying to get a better job and boost your income, and the other is that you are saving more money and spending less.

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How You Can Spend Less

My summer job was working at a yacht club when I was at university. In particular, in one of the restaurants there that was actually paid for and owned by the club's clientele, I was a waiter. The club was located in Sandbanks, England, an area sometimes referred to as 'millionaire's row' as it has one of the most expensive properties along the seafront in the world.

So, these are people who own yachts and who belong to a club located in one of the world's wealthiest areas. It's enough to say they were not struggling for cash. And what many individuals would point out to me, of course, is that this would probably lead to pretty big tips!

Except that's not what was going on. I actually got some of the worst tips I've got in any job, actually. I had a lady call me over to secretly give me 20p for my hard work (around 30 cents). She literally told me to purchase something nice for myself. And this takes into account that tips of 10% are standard practice in England. Usually, the meals cost close to $150.

I said this to my mom, and her answer was: how do you think they got rich, darling?

Makes Sense

Look, I'm not here to tell you that you ought to be stingy about tips. But what I'm telling you is that the richest people understand that, in the long run, every little bit adds up and makes a very big difference. Your goal now is not to scramble. That $3 coffee you have on the way to work each morning is actually $15 over the course of a week. Over a month, $60, and over the course of the year, $720.

That's a tiny amount, and that's before we even considered all the other stuff you probably pay for that you really don't need. For all those trips you don't really need to make, maybe your Spotify account, Netflix, 100+ TV channels, gas for the car. It's adding up. Worse are all those bigger purchases on an impulse that we make.

These are things we think will make us look smart, such as clothes, games consoles, PCs, overly advanced phones. How much did it cost you for your phone? If you're on a contract, then it's likely that you will pay $700 or more for it. Now ask yourself how much more the phone actually does than it does for $300. Do you need the fastest processor around, really? Considering that in the app store, even an old phone can play everything?

Do you really need a camera with 30 megapixels? Or a screen with 4K? Can you even see the 4K to 1080p difference? Marketing, the internet and other individuals are the real problem here. Unfortunately, we have been conditioned to associate these products with achievement and find them highly desirable. Because it looks so sexy in those adverts, we want to get the latest phone, car, computer, etc. But the reality is that we don't really get happiness from these things.

Similarly, we're told that we need to buy a big house and go on a lavish holiday. Really, is this for us? Or is it so that we can make others look successful? I'm not telling you to cut back on all the stuff here that makes you happy. If you aren't going to enjoy it and have a better quality of life for you and your family, there is no point in having wealth.

All I'm telling you is to make sure that you are sure of what makes you happy. And that often implies deciding what you don't need and what to prioritize. Did you always dream of a large and beautiful house? Then why not stop going for a while on those big holidays? Why not stop buying TVs that are widescreen? And how about thinking about getting that big, lovely house in a less expensive area?

Heck, if you move to Spain, there are places where you can live in a five-bedroom home with a swimming pool and a rooftop pool, and it's only going to cost you $200,000. When there was no mortgage, you could almost buy it in cash and think about how much money you would start making then!

Conversely, if traveling the world is all you want, then you can change your accommodation to something less glamorous. How about moving to a quiet neighborhood and living for some time in a spare bedroom? Your outgoings are going to be small, so you can enjoy going on more vacations and still save that wealth. Know with that money what you want to accomplish. Know what wealth means to you and then you can concentrate on your money being more effective.

Financial Modelling

This will help you set up a budget and/or a plan as well. If you know how much you come in and how much you want to make per month, save per month and spend on things that make you feel wealthy per month, then you can create a budget that will assist you in a specific timeframe to reach that point. This is where you can look at the little things you can cut in order to save money.

If you have a spreadsheet that contains all your monthly income and all your outgoings, then you can look at what kind of impact it would actually make to cut coffee from your routine. At the end of each month, you'll be left with a total profit and you can decide how much you want to put into savings and how much you plan to spend on other things.

In your accounts, you can even set up standing orders so that money saved automatically is transferred to a savings account. With such a spreadsheet, you can then multiply by any given number of months the savings you make and see projections of what your finances are likely to be in the future at certain points. Need more cash for the next expense?

Then look at something else that you can do to cut down on your spending. This is called 'financial modelling' and instead of just letting it 'happen' without your direction or input, it's a powerful instrument for building your wealth.

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A Few More Ways of Saving Money

And what if you've run out of stuff that you can cut to save money? What if you just live on as little as you can? To receive bonuses, a few other options include changing your bill providers, selling off old items, or even moving money between accounts. A friend of mine is doing this religiously and will even take out 0 percent APR credit cards, just so that he can put all that money into an ISA and then make a profit on it.

He'll sign up if he gets a cash incentive to sign up for anything! And without taking one of the older items to sell and thus compensating for the cost, he never buys a new piece of technology or even clothing. Another thing to note is that if you have a dream of a wealthy future, then you may need to 'be okay' for a while to live a little more simply to get there.

You need to put the work in now, in the future, to reap the rewards. And this is difficult because it often means forgetting the conventional signals of wealth and success once again. You have to do this for you once again, and not worry about what others might think. So, for instance, if you want to have a lovely home someday, one of the best things you can do is live with your parents if they let you go.

Sure, it's not glamorous and it's not fun, but you'll be able to save so much per month if they charge a small amount of rent that it'll help you get MUCH faster on the property ladder. In a less attractive area, you could then buy a smaller home but flip the property to make a large profit. You need to put in the graft and have an eye on the future.

Similarly, you might need to learn to stop trying to show friends your wealth and stability. Have you ever met a friend and eaten in a restaurant you can't really afford because you want to see them and because suggesting eating somewhere cheaper is embarrassing? This isn't exactly conducive to getting wealthy quickly, as you can imagine! Again, you need to be prepared to tell them you can't afford it and go somewhere else.

Configuring Revenue Streams

The revenue streams come next. We have seen how, without changing your job, you can actually become richer, simply by spending less. By having more than one income stream, the other strategy is to become wealthier. Your wage, again, does not determine your wealth! So, what could that mean? One simple option, such as a weekend job, is to take on another job.

If you are happy to work on a Saturday, then each week you may have an extra $150 to spend! That's 600 dollars per month or 7,200 dollars per year! Save that and you can live in a nice house in a few years, or you can use it right now to feel that bit more wealthy and wear those fancy clothes. This, however, is a big sacrifice. So, for example, what would be better for most individuals would be to earn cash online.

In his book The Four Hour Workweek, which is a small online company that generates a passive income, Tim Ferriss describes creating a 'muse'. This can be as simple as finding an affiliate product (a product you sell for commission) and making it recommended by a simple website, then sending advertisements to people there. This is very low maintenance, but a fair amount of money can potentially be made.

Alternatively, you could try matched betting (a form of betting that ensures that you can't lose-it only uses the free bonus amounts you get given to sign up) or you could look for a simple online job. How about selling online photography? Working as a web designer or writer? Or, like a friend of mine, are you trying to comment on sports websites?

Of course, you can also make money from arts and crafts and sell some stuff you do on the side, or you can buy and sell items on eBay in bulk! Then there are the other offline options: these include things such as renting out rooms for students, such as lawn mowing, hair cutting, teaching an instrument, etc.

All of these options will help you make an income that's going to be extra to your current income.

Not only does this, of course, give you a better total, but it will also help to make you more 'resilient' so that you will, of course, still have some money coming in if anything ever happens with your main job. Another hint? The more you create, the more you're going to make. Whether that means buying a second home and letting it out to someone else, or whether it means moving to an area that you know is up and coming, try looking for investment opportunities.

A weird thing to think about here is board games. If you've ever played Monopoly, or any other game where you have to amass some kind of resource, then you might have discovered that early on, it pays to invest wisely. To get a card that pays out every round just a little bit, or that keeps you from losing every round a little bit.

In the short term, these seem like small changes, but over the course of the game, they eventually put you in a position of great power and help you decisively win! In real life, it's the same. Make a couple of correct decisions that will build up over time. Know what you'd like. Patiently be. And avoid the desire to splurge on the short-term reward. That's how you get yourself into a rich mindset!


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