Developing Your Millionaire Mindset
Last week, we introduced a fascinating audio book, Secrets of the Millionaire Mind, in which author T Harv Eker explains how people's thoughts can actually influence their financial results. This week, we explore some of Eker's insightful suggestions about how you can create a mindset for wealth.
Acknowledge that you create your results
It's important to understand that you have the ability to design the destiny that you desire. Eker insists that you are the "steering wheel of your financial life" as you have the power to create what you have or what you don't have. Unfortunately, too many people never achieve their goals because they think that forces outside of their control are responsible for their success or failure.
Instead of taking responsibility for their future, Eker explains, people with poverty mindsets often blame other people and circumstances for their money problems. They also try to justify their financial lack with comments such as, "Money is not that important to me." Constant complaining is another form of negative energy that actually ensures that they only attract more problems.
You have to stop the blame game if you want to be wealthy. As Eker asserts, "You can be a victim or you can be rich, but you can't be both." He recommends that at the end of every day, you should write down one thing that went well and one thing that didn't, and examine what you did to create that result. Then declare to yourself that you create the exact level of your financial success.
Focus on opportunities, not obstacles
Eker reveals that one key difference between wealth-oriented and poverty-minded persons is that when faced with a new opportunity, the first group sees the potential for growth and rewards while the latter only sees impending loss and risks. Instead of always examining where the problems are in any situation, you should develop the confidence in your ability to make an opportunity work.
Sometimes you have to be willing to take risks in order to take action. Eker points out that wealthy persons take educated risks, as they carry out relevant research and do due diligence on any project before they make decisions based on solid information and facts. They also believe that if the worst comes, they can always make their money back.
You can never have all the necessary information beforehand, Eker admits, but you still need to get started on your plans with the resources and knowledge that you currently have. Once you start the process, then other doors will open and help you to move towards your goal. "Practice optimism," he advises, "whatever anyone says is a problem, rephrase it into an opportunity."
Choose to get paid for your results
Another characteristic of millionaire-minded persons is that they decide to be compensated for their results, not for their time. Most employees think that selling their time in exchange for a salary will bring financial security. However, Eker cautions that they are actually sacrificing their potential wealth, as a fixed pay cheque may prevent them from earning what they are really worth.
Eker maintains that poverty-thinking persons are really afraid that they won't be able to earn enough based on their performance, so they settle for earning just enough to survive. "Never put a ceiling on your income," he declares. "If you get paid only for your time, you are killing your chances of wealth."
Wealthy persons are confident in their ability to increase their income in line with their results, and own businesses or earn commissions that are directly based on their efforts. If you don't have a business idea, Eker suggests that you can profit from someone else's idea by joining a network marketing company. Another high-earning option is to become a commissioned salesperson.
Make your money work for you
Eker acknowledges that although it's important to work diligently, "working hard alone will never make you rich". To be truly wealthy, you have to attain financial freedom, which he describes as "the ability to live the lifestyle you desire without having to work or rely on anyone else." But how is it possible to earn money without working?
Wealthy people understand that they have to use leverage in order to truly become financially free, Eker reveals. Leverage comes from making use of other people's time, such as hiring employees to work for you, and putting your money into investments that can provide income. Focusing on using leverage to earn money is the secret to creating passive income.
To gain wealth in the future, you have to take some of the money you earn today and channel it into building businesses and investments. Get educated about the world of investments and choose options that can help you to achieve your goals, Eker advises. Also look at generating ongoing income from passive sources such as rental units, coin machines, franchising, or royalties.
If you want to chart your own course towards financial security, I recommend following many of the action steps outlined in the Secrets of the Millionaire Mind.
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Cherryl is a financial consultant and money coach, and founder of Financially S.M.A.R.T. Services; she is currently writing her first book, "The 3 Ms of Money." Get more practical financial advice at www.financiallysmartadvice.com and free financial tools at www.financiallysmartonline.com.