We all know
these people. They seem to have an endless amount of money as evident in the
way they live, what they own, the places they go on a whim, and by the topics
of their conversations. But what are some of the distinguishing characteristics
between the truly wealthy and regular people? Moreover, how can regular folks
like us who aspire to attain this level of financial freedom make these
aspirations a reality? Below are a few key ingredients to understanding how to
acquire a mindset for wealth accumulation.
First, the
wealthy are owners of their assets. From my work experience in wealth
management, most high net worth (HNW) investors have acquired wealth through
owning a family business. For those of us not born into a family with its own
enterprise, you can still think like an owner at your place of employment. As
you progress through the corporate ranks your compensation package will begin
to include a number of additional income opportunities. For example, corporate
executives can be rewarded above their salaries through stock options,
incentive-based compensation, and additional cash bonuses based on how the
business performs. Alternatively, you can be independently ambitious with a
unique product that creates value for people and use that to start your own
business. If you chose the entrepreneurial route, start testing out ideas or
products while you still have your day job. Continue to refine your product
with the ultimate goal of having its sales outpace your current income before
making the switch to full time entrepreneurship.
Secondly,
wealthy individuals think like investors. They make their money work for them.
This can be accomplished through using a strategic investment plan in the stock
market or real estate. The point is to find an established, proven plan to
create wealth, master the plan, and begin to implement the process into your
own finances. Reading books and financial blogs, attending seminars, or seeking
out a mentor are great options in your quest for knowledge on a particular
subject matter.
Third,
financially successful people know the language of money. They know how money
works and how to make it work for them. They have a high degree of financial
literacy and may even be an expert in a particular area of business or
investing. In order to acquire wealth you need to speak like the wealthy. In
doing so, your actions with your assets will begin to reflect what you are
saying. You will be more respected around wealthy people too, which will open
doors for more opportunities. Spend time around the wealthy and you will begin
to pick up on some of the unspoken habits that have led to their success.
There are no
promises in life, but for most people wealth can be a reality. Unfortunately,
most people feel too daunted by all the information available or overwhelmed
with debt and burdens of everyday life that they never make any progress. The
key is to start small and keep adding to your knowledge base. Make it your goal
to learn something new about money each day. This will help you move from your
current financial situation to a life of financial freedom.
The primary motive
for starting my blog, Wealth in Words,
was to provide financial information that I have acquired through my own
experiences, work, and independent studies and share it with others in a
straight-forward, applicable way. Keep striving toward your goals and
understand the feelings of frustration or uncertainty are part of the process.
Hopefully this advice is relevant and can help you begin to shift your mindset
towards wealth acquisition as it has done for me.
As always,
if you have questions or comments, feel free to send me a message. I’d be happy
to hear about your suggestions and experiences. Thanks for reading.
JD
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