Is your mindset stopping you from creating a fortune?
Changing your mindset is the key to building your wealth and dream lifestyle. Yet, without realising they are doing it, many people sabotage their goals, their wealth, their dream lifestyle and sometimes their peace of mind simply because they don't understand the impact their mindset has on their future. Is your mindset holding you back?
In the picture below there are 4 typical types of mindsets. An employee; A self-employed person; a business owner and an investor. In each category you can see that the mindset is different. The focus for each person within each category is different and has an impact on how they view investments and their reaction to investing in general.
Understanding the shift in mindset to that of investor will help you make the right decisions with your investments. It will help you understand why some things work for you and others don't.
Employee - has a mindset which is focused around trading their time for money. They perform their duties as an employer requires, often giving more than is required to make themselves more valuable to the employer and as compensation for giving up their time the employee looks for good wages; pensions; holidays and working conditions. There is nothing wrong with this mindset from an employment point of view, however, changing it to one of investing takes time. It is the most difficult mindset to alter. The employee has to move from being told what to do and when, to becoming an independent thinker whose focus is on the results of their investments. They have to accept responsibility for how their investments perform. They move from the mindset of trading time for money to one of delayed gratification and patience and having to wait for the investments to work. Many find this very challenging.
One of the downsides of this type of mindset is something I see with some clients of the £2.73 Club and with some of my private clients. They are desperate to have a quick result, make their wealth so quickly that they flit from one investment strategy to the next claiming the investments don't work when it is their mindset that isn't working. They are so impatient for an instant result that they don't allow investments time to grow. The constant chopping and changing drains their capital due to all the fees of getting in and out of the investment. They throw money at the next investment or coach hoping this will fix the problem and they will be wealthy within a week or two. Sadly, that doesn't happen and they end up with the mindset that investing is a scam.
Self-employed - are the people I call the Jack of all Trades. They have taken on the responsibility of starting their own business. They are in a steep learning curve as they focus on building their businesses. They have to learn all about business; marketing; customers; sales; staff if they take on any; employment law to deal with any HR related requirements. Many are at the stage where they can't afford to employ consultants to help with running the business. They often struggle to find the cash to for day to day living expenses let alone, investing.
One of the first mindset changes a self-employed person has to address is that of time management. Letting go of some day-to-day activities within their business which can free them up to make more sales, find more customers, generate more income and build their investments. Identifying that sometimes they are the bottleneck holding back their business. Self-employed accidently make good investors as they are so busy with their business, they let the investment run it's course without requiring instant results. They do, however, fail to realise, their business is an investment an asset that can be sold as they become too attached to the business. Being able to step away and look from a distance is a mindset strategy that needs developing.
Business Owner - these are the people who are good at building businesses which in themselves are investments. Business owners have managers who work for them and run the business while the owner concentrates on the strategies needed to continue building and expanding the business. As business owners they have made the first step towards being an investor and the transition to full time investor is much easier as they have already built one category of their investments.
One of the biggest mindset failures of business owners is not thinking big enough. They get their business to a level and run out of steam or motivation to take it further and develop it into a potential public company. The wealthiest business owners have built multiple successful companies. Take a look at Richard Branson; Jeff Bezos; Terry Mathews
Investors - the mindset of an investor is having money work for them so they are not tied to a day job trading time for money. An investor will concentrate on how quickly they can invest their capital and get it back out of the investment with a profit. I call this fast cash. Getting your initial capital out of an investment but still retaining control of the investment. They move their capital into the next investment and exit that one quickly still retaining an income asset. This rinse and repeat process generates quick sustainable wealth as they build assets in the four investment categories - business; property; paper and bullion.
The investor has a positive growth mindset which is looking continually for opportunities around them. They are not investing for instant return but have the patience to allow the investment to reach it's potential knowing they will make their money at a set time within the investment deal.
So, what does your mindset say about you? Are you stopping yourself from becoming wealth? What can you do to change your mindset and change your wealth and lifesyle?
For more information about Wealth Training and/or Private Coaching email info@2pound73Club.co.uk
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