When it comes to building wealth, having the Wealth Mindset is critical. The Wealth Mindset is an overriding attitude that you have towards your finances. It influences how you make any financial decision. I believe your Wealth Mindset will have a huge impact on your attitude towards – Saving, Debt, Investment etc.
The Wealth Mindset sees opportunities rather than roadblocks. It recognizes that every financial situation can be fixed with simple but consistent steps.
“Cultivation of the right mindset and the use of the right mental attitude are the ultimate goals that will deliver to us the life we have only dreams of thus far” – Elle Sommer
The Wealth Mindset helps you develop the right attitude towards money – one where you are not obsessing over the availability or lack of money, one in which you control money and money does not control you.
“Money is a terrible master but an excellent servant” – P.T. Barnum
One book I love and recommend to anyone who is serious about transforming their relationship with money is “The Richest Man in Babylon”. It shares financial advice through a collection of parables set 4,000 years ago in ancient Babylon which are still very useful.
Today, I’ll be sharing my top nuggets from the book and how you can use these tips in diligently building your wealth and developing your Wealth Mindset:
1. Increase Your Earning Capacity
The most important investment you would ever make is the one you make in yourself. You are your best asset; hence, you must be deliberate about improving yourself. It is the skills and knowledge you possess that would eventually translate into wealth building opportunities. So, take those courses, increase your skill set, build your network and you would be increasing your earning capacity.
2. Control Your Expenditure
“Don’t tell me what you value, show me your budget, and I’ll tell you what you value.” ― Joe Biden
A lot of people tend to spend money they do not have on things they do not need in a bid to ‘keep up with the Joneses’.
This is one of the quickest ways to deplete your resources. If you are serious about building wealth, you need focus on spending wisely.
Review your expenses, do not confuse your “wants” for your “needs”. Cut some costs and create a realistic budget to ensure you have money to save and invest.
3. Seek Smart Advice
There is so much information out there on ways of building wealth, it is important that you scrutinize these sources to make sure they are reliable and in line with your financial goals. Do not hurry into making any major financial decision. Rather, make out time to study the terrain. Never forget, one wrong financial advice can cause you to lose all you have worked for.
Therefore, commit to cultivating the right financial habits, as it will continue to pay you dividends throughout your life. Without these habits, you will make a shipwreck out of your finances.
Remember, You Have Only One Life To Live, Make It Count!
