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What’s stopping you from seeking financial independence?
Do you feel like you’re postponing life by saving money every month?
If yes, chances are that you’re lifestyle is pretty expensive. What do you sacrifice in your life now to reach a goal in the future? I’m not here to tell you that you should change your habits if you like your life as it is, but more often than not we do what feels most comfortable. Every single day.
We know saving more money is good for us, but so does the feeling of having the brand new iPhone. The problem is that saving money creates wealth, while consuming makes you poorer.
Show me your budget and I’ll show you how wealthy you’ll be.
How wealthy you’ll be in 5, 10 or 20 years depends on how much you save and invest today.
So what’s more important to you? To look wealthy or to actually be wealthy?
To look wealthy you can signal this by buying a car on credit, have lots of fashionable clothes and post Instagram pictures of your expensive restaurant meals. To be wealthy, it requires you to have few needs and rather invest the surplus of money. But since most people are terrible delayers, they buy the things they want today.
I agree with you, the picture above looks like the perfect day. And yes, this can be yours one day. But the difference between people with a rich mindset and those with a poor mindset, is that those who’ve a rich mindset postpone their gratification until they actually got the money to buy what they want.
How To Be Wealthy
Throughout your life you will need to have some amount of money in savings. This is where investing starts. Investors use savings primarily as a buffer against life’s unexpected expenses.
Sometimes you need a new air conditioner or a new roof for your house. Maybe you lose your job. Whatever reason, money should be earmarked as savings to ameliorate life’s inevitable curveballs.
A good rule of thumb is to have enough savings to cover 3 months’ worth of living expenses. If you have an extremely stable government job, you might lower this to 2 months.
On the other hand, if your job or income is at risk, you might consider having 6 months or more in savings. The obvious implication is that if you save too little, you may have to liquidate other investments at an inopportune time and at great expense.
If you have too much in savings, you are missing out on the higher returns of long-term investments.
Only you can decide what’s best for you.
To some people, wealth means having the appropriate mental state.
This is brought about by combining a specific way of thinking with the right attitude.
This combination often takes them towards the goals they want to achieve in life. This “wealthy mindset” is not about money but about drive and purpose.
It can be illustrated by a person in difficult circumstances who nevertheless rise above their difficulties and achieves their goals because of inner strength and a belief in themselves.
14 Steps to Develop a Wealthy Mindset
1. Define what wealth means for you: there is no way you can be wealthy if you don’t even have a definition. The definition you create will help you parameterize your goals and will provide a general direction for you to head towards.
2. Set your goals and write them down: Knowing which things you want to accomplish is the first step to reaching them. Reading your goals to yourself regularly will help you see them objectively.
3. Design a strategy to achieve these goals
: Create a plan consisting of small achievable steps.
By breaking your large goal into numerous milestones you will drastically improve your chances of arriving where you want.
4. Start small and grow: keep in mind that the journey of a thousand miles starts with a single step. Do not be in a hurry, focus on progressing in the right direction, not getting to your destination quickly.
5. Change your programming: Many times we develop habits in childhood that hold us back as adults. The circumstances that made us behave in a certain way as children are no longer in existence. Don’t keep them alive.
6. Stop telling yourself negative stories about who you are: Silence your inner critic and refuse to hold on to your limiting beliefs. Strive to become the best version of yourself by envisioning and embodying who you want to be.
7. Become a constant learner: Progress implies development. To develop you must be willing to fail, incorporate new things, take new risks, live new experiences and pursue new goals.
8. Push yourself out of your comfort zone: Don’t let your fear, thoughts and limitations paralyze you. By getting out of your comfort zone you are allowing yourself to turn your incompetencies into competencies. Be uncomfortable every day and turn your weaknesses into strengths.
9. Think that success is natural for you: Success is natural for those who aren’t afraid to fail and learn from those failures. The art of learning from failure is the same as learning how to succeed.
10. Stop being a conformist and lazy. Take action
: Leap from theory into practice. Perhaps you are feeling that you are not ready, you are afraid, or insecure.
No matter what the reason is, just do it anway!
11. Get out of your head: Don’t spend your time mentally rehearsing your triumphs and failures. Life is happening outside. Spend your time learning from people who are where you want to go.
12. Be willing to go through the pain without giving up: The process of change can’t happen without experiencing pain. Remember that this pain will ultimately lead you to growth, improvement and the results you desire.
13. Be consistent: If you want to have permanent change you need to be consistent enough to turn this way of thinking into a habit.
14. Practice gratitude: Find something to be grateful for every day no matter how simple. Learning to be grateful for everyday things will condition you to appreciate them and experience the wealth all around you.
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Have questions, comments or suggestions? I would love to help you with your FI-journey.
Feel free to reach out directly at @Route2FI on Twitter or email me at post@route2FI.com