You might have heard the term “wealth mindset” before. If not, one euphemism for it is “thinking yourself rich.” But what does the expression mean, and is it possible for the average person?
Many self-help gurus describe a wealth mindset as a way of thinking and acting that separates the wealthy from those who never achieve that status. Many books, videos, and other media forms teach you that attaining wealth is possible. They usually emphasize making wise investments, spending less, and trying to figure out how to improve your financial standing while minimizing or eliminating risk.
Is accruing wealth really that simple? This article features our three best tips that should point you in the right direction.
Consider how to shrink your outstanding debts
Your outlook will matter as you work to accumulate wealth, but one thing is certain: you can’t start making money while you have outstanding debts hanging over your head. Paying them off is the first thing you need to do.
Looking into tools like a debt consolidation calculator is often a logical step. This is a tool that you use to determine if debt consolidation makes sense for you. Debt consolidation is a form of debt refinancing where you take out a single loan to pay off several others at one time.
If you have a great deal of consumer debt, this may end up being the best move for you. Having a single amount that you know you’ll have to pay each month is often easier to track than a variety of bills and creditors. Once you have paid off all your debts, you should be in a much better frame of mind to start cultivating wealth.
Learn to think abundantly
Next, you’ll want to learn how to embrace abundant thinking and stop using a scarcity mindset. Abundant thinking means you start each day believing there’s no limit to what you can attain. A scarcity mindset is defeatist thinking. Optimism versus pessimism would be another way to describe these two notions.
Abundant thinking is a way many successful people try to approach each day. For instance, someone who dedicates themselves to this mindset might not be satisfied with where they are in their career. They may spend their lunch break hunting for higher-paying jobs. They might start looking into student loans or a trade school if they feel like they don’t have the skills or degree that will allow them to reach the next career echelon. However, as they move forward, they stay steadfastly positive and try not to let any setbacks discourage them.
Try to think about money in a new way
Once you’ve diminished or paid off your debts and started being proactive about making more money, the final step is to think about your finances differently. Maybe you see something you want, and you’re sure you can never afford it. Instead, try thinking about ways you’ll be able to eventually raise the money to get to where you want to be.
That might mean living in a nicer neighborhood or owning a better vehicle than you do right now. It’s all about what you prioritize.
Whenever you fear that you’ll never achieve your goals, practice saying a mantra to yourself. That might be something like “My bank account balance does not define me,” or “I am capable of reaching my goals if I remain persistent.”
A support network can help you cultivate a wealth mindset
As you take steps like paying off debt, figuring out ways to get a better-paying position, and trying to adjust your thinking where money is concerned, it’s also helpful to surround yourself with individuals who will support you. You might explain to a spouse, partner, or other family members that you’re trying to better yourself financially, and you’d appreciate their help with that.
If you ever feel like your positivity level is lagging, they may be able to assist you. If they see this is important to you, they should be willing to encourage you if you ever falter.