One of the best ways to celebrate International Wealth Mentality Month this January is to revisit your financial plan. Speak with your financial professional about your current situation. There are always adjustments that need to be made to current strategies, even if they’re small changes. Being financially prepared for any potential situation will bring you a secure feeling about your short-term and long-term plans. One way to start this process is to develop your wealth mindset.
What is Wealth Mindset?
A wealth mindset is a set of beliefs, behaviors and habits that guide you to make the most from the money you already have. You need to learn where and how to spend less. Highlight smart investments. Seek to improve your financial standing through low risk moves. It may be easy to start, but it can be progressively difficult to maintain. Here are some ways to help with your wealth mindset.
The process of building your wealth is slow. It’s not going to happen overnight. Whatever the goals you and your financial professional decide upon, it’s important to have patience. Avoid any type of “get rich quick” opportunities. If it seems too good to be true, your instincts are probably accurate.
There’s nothing exciting about setting goals. You’re building a reasonable plan — probably how much you’d like to save each month — and you should make certain you stick with it. Create a budget. Look at what expenses you can afford to cut. These will be difficult choices. You’ll need to avoid luxury items, switching to cheaper alternatives, going from brand names to generic. The deeper you look, the more you’ll discover where you can save.
Invest in Your Future Now
When we all get our first job, we start saving money in our savings account. Don’t let it sit there. Over time, rising prices and inflation causes your dollars saved to decrease in value as everything around it gets more expensive. Don’t fear, for there are options to consider.
401(k) plans and IRAs are common investment choices at your disposal through your employer or by creating your own. Another goal should be compound interest — where you earn interest on top of your interest from the money in your accounts. Each year your money is invested, you’ll earn a percentage of interest on the total amount of money in the account, which includes the amount you made last year.
Work on You
One of the toughest things for anyone to do is to self-evaluate, but it’s a necessary step when developing a positive wealth mindset. It’s time to take care of you, mentally and physically. Look to minimize time-wasting activities. Limit the time you spend watching television or scrolling through social media feeds. Practice better health habits. Learn about healthy eating habits, how to get the right amount of sleep and understand how to exercise the right way.
Working on you isn’t only about your mental and physical health. You should also work on your career health. One way to develop your wealth mindset is to seek out multiple avenues to that wealth. Find multiple sources of income. Side hustles or side gigs are a great way to add wealth, plus you’re potentially developing new skills. But only if you can handle the extra workload. You still want to maintain a healthy work-life balance.
Keep Things Positive
All of us succumb to bouts negativity, internal and external, but a major part of building a wealth mindset is to keep positive. Manifest your wealth mindset journey with positive thoughts. Don’t dwell on the negative. That will send you on a path to give up your dreams. Remember the law of attraction. Like attracts like. If you think about creating wealth, you will bring that wealth into your life. Continue to foster those positive thoughts.
SKG is here to help with your wealth mindset journey. If you’re looking to revisit your financial plan and develop your wealth mindset, contact us and let’s get started building your wealth.