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Do you dream of going for a “gold coin swim” a la Scrooge McDuck from Disney’s animated series, DuckTales? Or do you think you can only have a wealthy mindset if you are rich or come from means?
Well, I’ve got news for you. You don’t need to be wealthy and have at least a million in your bank account to develop a wealthy mindset. Everyone has different definitions and ideas of what it means to be wealthy, so what’s yours?
Visualize your financial goals and know that you can only achieve these if you start working on having a wealth mindset.
Developing the right mindset to achieve your goals is step number one, and here’s everything you need to know about improving your money mindset.
What Is a Wealthy Mindset?
A wealthy mindset goes by several terms – a wealth mindset, a wealthy state of mind, a money mindset, a millionaire mindset, and a rich mindset – and similarly, there isn’t one unified definition. A wealth mindset can mean:
I believe a wealthy mindset is similar to an abundant mindset where it’s not about what you have, but rather believing that there’s enough resources available to you so you can be more financially successful. You believe the universe is plentiful and there’s no limit to your potential.
It’s not about making a million or gazillion dollars, having financial security, or expanding your net worth. It’s about having purposeful habits and thinking abundantly every day so you can experience more success and confidence, which helps you achieve your (financial) goals – because you already behave as if you’ve achieved them.
With the right mindset, you’ll know you have the power to make healthy decisions so you can move forward financially and make the most of the money you do have, while with an unhealthy, scarcity, and poor mindset, you’ll keep yourself back.
If you’ve ever read Rich Dad Poor Dad by Robert Kiyosaki, you’ll know that being wealthy is a choice. You can choose to be wealthy, or you can choose to be poor. Your wealth starts with your mindset – how you think or the thoughts you put in your head.
In the words of Lao Tzu, “Watch your thoughts, they become your words; watch your words, they become actions,” which then become habits, your character, and your destiny.
Benefits and Power of Developing a Wealthy Mindset
So, since a wealthy mindset isn’t (necessarily) about becoming rich, is there any value in developing a healthy money state of mind?
The answer is a resounding yes. There is power in thinking abundantly, and there are at least 9 benefits to having a wealth mindset:
9 Ways to Develop a Wealthy Mindset
I’m sure by now you think having a wealth mindset is super cool and that you want to reap those benefits, so here’s how you can start changing the way you think about money and wealth for the better:
1. Define What Wealth Means to You
My idea of wealth isn’t the same as yours. Know that being wealthy doesn’t necessarily mean you need to have lots of money in the bank. Being rich equates to adding to your bank balance and worth, while being wealthy or having wealth is when you have enough resources or possessions.
Having wealth could mean the freedom to choose what you do with your time without needing to earn a paycheck, or it could be having experiences and the means to pay for these. It can also mean being financially independent, where you have enough to get by without worrying about living from paycheck to paycheck.
So, identify what wealth means to you when you think of your life now and what you realistically want for the future. Work out what the money component is to have the life you’ve always dreamed of having. After all, pretty much everything costs money.
When you know what wealth means to you, you can start changing your mindset.
2. Be Clear on Your “Why”
Having the wrong reasons to create wealth or be more financially stable (or sustainable) won’t lead to success. Chances are that you’ll give up too early when you don’t have the right motivation.
Thus, it’s essential to be clear on your “why.” Why do you want to have a wealth mindset? Why do you want to be wealthy? What benefits do you gain?
Your “why” needs to be so clear and strong enough that it can carry you through the tough times, sleepless nights, and moments when you want to give up and question what’s the point. It’s your motivation to keep you going. Plus, it gives you a sense of purpose.
Your reasons for developing a rich mindset will also make it easier to create a game plan so you can achieve your goals.
3. Educate Yourself About Wealth Creation
To start developing a wealth mindset, you should invest in yourself. Educate yourself about what it means to be wealthy (according to your definition and ideas) and how you can attain that wealth.
When you know more, you can be more successful.
Chances are you currently have an unhealthy relationship with money, and books like Your Money or Your Life: 9 Steps to Transforming Your Relationship with Money and Achieving Financial Independence by Vicki Robin and Joe Dominguez can help transform the relationship you have with money.
The start of wealth management is learning about financial intelligence, financial integrity, and financial independence so you can take better control of your finances. A change in mindset will ensure your actions match up so you can find a road map for money that works for you.
You should also learn about passive income, investing, budgeting, and more so you can create the wealth you need.
4. Set Goals
Once you know what wealth is to you and you’ve done your homework to learn more about wealth creation and healthy relationships with money, you can start setting goals that matter to you.
You can’t create wealth in a day (so stay away from any “get rich quick” schemes); it’s a slow process that starts now, or earlier rather than later. With your idea of wealth firmly in your mind, you’ll know how much you need, and you already believe you have enough.
Some goals to create a wealth mindset are:
5. Say No to Instant Gratification and Convenience
Always choosing instant gratification and convenience instead of toughing it out is an issue. I had such a laugh when I learned that the problem of immediate gratification is called PIG for short (and kind of rightfully so, right?).
When you give in to instant gratification, you choose small rewards that you can enjoy now at the expense of larger rewards that you earn later. The problem is that immediate gratification is addictive (it’s pretty much like crack).
Every time you are rewarded, your brain lights up and your body is flooded with feel-good hormones. And if you don’t give in to that reward, you feel like you are missing out on something (#FOMO, much?). The pull of immediate gratification is real, and it’s almost unbearable to delay being rewarded (for good or bad behavior).
No one who has a wealth mindset and focuses on being wealthy will give into immediate rewards all the time. Those with a healthy relationship with money and abundant thinking habits know the value of delaying gratification – choosing to save or invest money to have more later rather than spending that money now.
You need to start thinking and planning for the future, not focus only on the now, so delay and say no to instant gratification and convenience.
6. Let Go of Limiting Beliefs
Limiting beliefs only do one thing: They limit you.
And when you are limited and hold onto limiting beliefs, you can’t have a wealthy and abundance mindset where you believe there are enough opportunities and resources for everyone, yourself included.
Thinking abundantly requires intentional effort, and it’s challenging to expect wealth and abundance when you grew up with less access to wealth and limited resources, and when you don’t see it around you.
If you have a scarcity or deficiency-focused mindset, you’ll take scarcity actions (or broke-ass decisions). Being wealthy won’t be in your reach.
It’s time to rewire your brain to expect abundance and make “million-dollar” decisions, which create options, time, and energy, before you become truly wealthy. Examples of “million-dollar” decisions are being proactive and asking for a raise (after researching industry rates), working hard and gunning for that promotion, or making a counteroffer when you receive a job offer. Action is better than no action.
You are worthy of abundance, so it’s time to start acting like it.
7. Be Grateful
Practicing gratitude is essential for developing a wealthy state of mind. When you are grateful, you focus on what you have and not on what you don’t, which decreases stress and makes you more appreciative. As a result, you won’t feel compelled to engage in unhealthy financial habits because you believe in wealth and abundance.
The best thing about including gratitude is that it doesn’t take a lot of time; I know, you are busy. But for only five minutes every day, you can note three to five (or more) things you are thankful for.
Remember, don’t just focus on the big stuff in your life, such as having a car, a house, or a positive bank balance. Be appreciative of the small things too – being able to breathe, the home-grown chives you can use in your cooking tonight, and the friendly waiter.
8. Accept that Money Isn’t Always Evil
Many people believe that money is evil, and the popular saying that “money is the root of all evil” surely doesn’t help you develop a rich mindset. If you have any negative experiences with money, it could stop you from wanting and cultivating wealth.
But money can be good too – to you and others – and believing this can be a game-charger.
When you have enough so you can provide for you and your family, money does good. Money is also good when you can use it to give back to your community – whether with time spent volunteering or teaching others about financial security and increasing their earning potential.
The takeaway is that money is as good as it is evil. It all depends on how you use wealth and money.
9. Be Mindful that Your Wealth Journey Is Unique
Another step to creating a wealthy state of mind is to be mindful that your journey isn’t the same as anyone else, so there’s no point in trying to mimic Warren Buffett’s, Robert Kiyosaki’s, or any other person’s road to wealth.
There are multiple roads you can take to make financial improvements in your life and think in a wealthy way. You need to stay the course and stay true to what works for you – consistency is key.
Final Thoughts on How to Develop a Wealthy Mindset
Developing a wealthy way of thinking may not make you a millionaire, but there are benefits to starting and staying on a wealth-building journey.
Being wealthy starts with thinking that you are wealthy, defining what wealth means to you, setting financial goals, being motivated and grateful, understanding that money can be good, focusing on the future, and letting go of any self-sabotaging behavior.
Ready to start investing in yourself? Start your wealth creation education with these 23 best personal finance and investing podcasts so you can develop a wealth mindset.
Finally, if you want to take your goal-setting efforts to the next level, check out this FREE printable worksheet and a step-by-step process that will help you set effective SMART goals.