protect your money
Personal Finance
July 1, 2019
By Mary Beth Eastman

These Are the Mindset Changes to Make to Build Wealth

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Simple. Thrifty. Living.

Even after many people eliminate their high-interest debt and start following a budget, they don’t know how to change their mindset to build wealth. If you can’t change the way that you think about money and wealth, then you will have a difficult time reaching your top financial goals.

Focus on these three perspectives and see how they change your world.

When you spend a period of your life struggling financially, you may develop a mindset that prevents you from seeing opportunities all around you. In truth, the world has abundant options for you to earn money.

Some of the most intriguing moneymaking opportunities to explore include:

  • Buying, selling, and renting property.
  • Starting a small business that fills a unique niche.
  • Investing in stocks, funds, and securities.

Working a 9 to 5 job may pay the bills, but it won’t build much wealth. You have to explore other sources of income to become truly comfortable.

You may have heard that the average American doesn’t have $400 to pay for emergency expenses. That’s an alarming statistic that reinforces the importance of saving money.

Once you have enough money saved, though, you need to focus on growth. Most experts say that you should have enough money set aside to pay for 3 months of bills. Once you reach that amount, put more of your money into stocks and other investments.

The typical savings account will pay you less than 3%. On average, you can expect a 10% return from the stock market. Don’t have a brokerage account? It’s simple to set one up with an online investment site. We’ve narrowed down the top online investment sites so you can get up and running today.

Changing your mindset means that you have to reevaluate traditional wisdom about money. Some popular proverbs include:

  • Cash is king.
  • Money is like sea water. The more you drink, the thirstier you become.
  • A penny saved is a penny earned.

Do these beliefs still serve you? Everyone likes cash, but every entrepreneur needs a line of credit to build a successful business.

Is money really like sea water? Some people get stuck in a race to earn more and more, but you could set a financial goal, meet it, and enjoy your life.

Is a penny saved a penny earned? Not if it’s just sitting in a piggy bank instead of multiplying!

Everyone has effective and ineffective mindsets. Learning how to identify the negative beliefs and banish them from your mind will put you on a path to wealth.

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