In other words, money doesn’t buy you happiness. And, as Warren Buffett perfectly put it, “People seeking riches never have enough. Wealth is a state of mind. Wealthy people always have enough.”
Instead, it’s your accomplishments that lead to a more satisfied and wealthy life. To put that another way, it’s the journey and not the final destination that matters. But, to get there, you need to focus your mind on building wealth so that it becomes a reality.
1. Cope with Financial Stress
According to an American Psychological Association (APA) study, 72 percent of Americans feel stressed about money at least some of the time. And that was before the COVID-19 pandemic and the economic fallout it caused.In turn, financial problems can impact your physical and mental health. And it also makes it more difficult to manage your money. Consequently, this can put you into a downward spiral.
- Talking to someone. Rather than bottling up your emotions, open up to friends, family, or even a mental health professional. You may also want to speak with a financial advisor.
- Take inventory of your finances. Are you struggling to make ends meet? If so, the only way to dig yourself out is to see how much you’re making and comparing to that what you’re spending. From there, you can make changes to resolve this problem.
- Make a plan and stick to it. Once you track your finances, you can devise an action plan, such as eliminating discretionary and impulse spending to get out of debt.
- Create a monthly budget. A budget is a proven way to keep your spending in check. It also can help you track your progress and give you a sense of control.
- Manage your overall stress. Find ways to cope with stress in a healthy way, like through physical activity and self-care. And don’t forget to get enough sleep and eat healthily.
2. Have a “Why”
Wanting to be wealthy just for the sake of rubbing elbows with The Joneses isn’t going to cut it. You need to really think about why you want to increase your wealth. Is it because you want to pay off your debt, start your own business, or become financially independent?3. Create Multiple Streams of Income
“You won’t get rich without multiple flows of income,” writes self-made millionaire Grant Cardone. “That starts with the income you currently have.” AKA, your JOB.“Increase that income and start adding multiple flows,” advises Cardone. “You want what is called symbiotic flows to that first flow of income. Do NOT add disconnected flows first.”
Instead, discover “other ways you can add income to the job you already have.” For example, Cardone’s video guy also does advertising for him—“and then he started making advertisements for those connected to me. He didn’t start a doughnut shop.”
The problem, according to Cardone, is that most people bounce “from one flow to a second flow resulting in two flows that do nothing. Your flows should always be connected.”
4. Stay in Your 3-foot World
Confused? Don’t be. It’s just another way of saying you only focus on what you can control and change.As explained during a “60 Minutes” interview, Navy SEAL Mark Owen said, “I found myself frozen on a 300-foot cliff. I couldn’t go up, and I couldn’t go down. My strength was beginning to drain.”
“The instructor swung over to me, attached to his climbing rope, and told me something that has impacted every part of my life. ‘Find your 3-foot world.’”
5. Pay Yourself First
According to self-made millionaire and bestselling author David Bach, there’s “one, proven, easy way to get rich.” Want to know what that is? Always pay yourself first.Obviously, Bach isn’t reinventing the wheel here—and again is highlighting the word “rich.” But, it’s an effective strategy that most people don’t take advantage of when increasing their wealth.
“What most people do when they earn a dollar is to pay everyone else first. They pay the landlord, the credit card company, the telephone company, the government …” Bach writes. And, when it’s all said and done, they take what’s leftover. Bach dubs this as being “positively financially backward.”
How much should you set aside? Well, a lot of us have been told that it should be a percentage of our income. Bach disagrees. “You should be saving the equivalent of one hour’s worth of income each day.”
Last week, I worked a total of ____ hours.
6. Surround Yourself with Like-minded People
Let’s say that within your inner circle, you have one friend who lives beyond their means. They live off of credit cards and could care less if they’re in debt. As they would say, “Yolo, y’all!”But there’s another friend. They’re aware of their budget so that they don’t live above their means. They even have a retirement plan!
7. Invest. Every. Single. Day.
It’s possible to become a millionaire by investing just $5 per day. And, thanks to robo-advisors, this has never been easier. For example, if you have an app like Acorns, it will round-up your purchases and invest the spare change.8. Practice Gratitude
When you’re grateful, you focus more on what you have instead of what you don’t. That not only makes you more appreciative and content; it also encourages you to work with what you have. Because of this, you’ll be less stressed and compelled to engage in unhealthy financial habits.And, as if that weren’t enough, gratitude can also broaden your social network, which, in turn, opens the door to new opportunities.
9. Change Your Mindset About Money
“Getting rich begins with the way you think and what you believe about making money,” writes Steve Siebold in How Rich People Think.“The rich eventually figure out that training your mind to find solutions to difficult problems is the real secret to making money,” adds Siebold. “The good news is this is possible for anyone who conditions their mind to think this way, and then transforms thought into action.”
- When they can’t finance an idea, “they “proceed to use other people’s money to make it happen.”
- They set unreasonably high expectations. “No one would ever strike it rich and live their dreams without huge expectations,” he writes. “Ancient wisdom says you get what you expect, yet many people decide to limit their lives to middle-class mediocrity to protect themselves from failure.”
- They consider earning a game, and “it’s a game they love to win,” writes Siebold. “This is the reason millionaires still go to work every day chasing their next success. Money to these people is no more than a gauge that tells them when they have achieved their latest target.”
- The wealthy consider money “one of their greatest allies and friends.”
- “The great ones are operating at a level of consciousness where fear doesn’t exist,” Siebold explains. “At this level of thought, anything seems possible. Every dream that seems crazy to the masses looks surprisingly doable.”
- And, they believe that “success, fulfillment, and happiness are the natural order of existence,” Siebold writes. “This single belief drives the great ones to behave in ways that virtually guarantee their success.”
10. Think Long Term
“Building wealth is a process, not an event—a process that takes discipline and a long-term outlook,” notes Anthony Isola from Nerdwallet. “You must focus on yourself, not what others are doing. Work hard and maintain a consistent approach.”- Realizing that it takes time to create anything valuable. For example, bailing on investment too quickly instead of riding it out.
- Working hard every day even if you don’t see improvement in the short term. Learning a new skill doesn’t mean you’ll get a raise immediately. However, just remember that you “will be rewarded with the miracle of compounded returns in the future.”
- Being consistent. “Persistence is the key to any successful endeavor,” explains Isola. “While it might satisfy a short-term urge to remodel your kitchen by raiding your 401(k) account, resist this temptation and stick to the plan.”
- Enjoying the process, and don’t worry about the outcome. Don’t obsess over money. Rather, put things on autopilot so that you can still enjoy your life.
- Not comparing yourself to others. Instead, Isola recommends that “you compare yourself now to yourself two years ago.”
