Financially successful people have one standout quality in common: their financial success is a state of mind. Not ‘starts with’ a state of mind, then depends upon luck. It is a state of mind that is rather easy to establish, takes a bit of training and soon grows into a natural way of life.
Simply put, if you want it badly enough, you’ll make it happen. You just have to set the right thought patterns, show up, do the work and earn your success.
This is very much like a fitness or weight loss goal. With a fitness or weight loss goal, you’ll think consciously about it every day. You will track what you ate, what you successfully avoided eating or drinking and if you worked out and for how long. You begin to really focus on the everyday details that add up to a routine.
The same goes for your financial goals. A financially successful person will consciously think about their goals each day. They ask themselves every day what they spent, what they successfully avoided wasting money on, what they saved, what was invested, and so on.
Traits of financially successful people
Over the years, we have noticed that those who are successful financially share some common traits. These people:
- Enjoy saving money
- Have incredible work ethics
- Live non-lavish lifestyles
- Are satisfied knowing they could have something rather than actually having to have it
When people have this mindset, they live their lives without the financial stress that others place on themselves through spend-thrift habits.
Can you create a financial success mindset?
Creating a financial success mindset is one of focus and reprogramming yourself to be what you define.
Most people don’t approach their financial goals in this way. If they take a look at all, they may frighten themselves with the label of discipline, as in, ‘that would take too much discipline.’ They might call this focus work, and instead turn away from their financial goals and just spend blindly for a while. Their mindset is avoidance and fear.
But if you want to be financially successful, you need to look straight at your financial goals and focus on the steps you need to achieve better results. When you are focused on your future financial security, you can go on to add extra strength to your mindset.
Teach your children, and absorb the lessons
It can be said that we’re a culture that has gotten very good at ignoring important steps and distracting ourselves into complacency. I’m sure you could name ten ways that people do that. While as an adult, it will take a lot to break the habit we have with our relationship with our money, kids can benefit from establishing a financial success mindset now.
If you teach your children that ‘if you want something, you have to earn and save money in order to reach get it’ the discipline of not buying things you can’t afford gets ingrained in their way of life.
You may set up a goal chart on the refrigerator or establish a savings account for your child’s savings. The presence of these financial achievement reminders helps to create a money-earning mindset and an honest relationship with finances for your kids. And as you’re helping them look clearly at their financial goals, you’ll likely absorb some of the messaging as well.
Yes, it can be hard for parents who have become accustomed to provide for their kids, to say no to just getting that new tablet now. But teaching a good money mindset is one of the smartest and strongest lessons for kids.
Train yourself to live with less
We get so caught up in buying a lot of things that we may not actually need. And our children watch and learn this behavior as well. This sends a signal to them that they too, will need a lot of stuff. These mounds of belongings will only be thrown away when you retire as downsizing becomes a priority.
Then these belongings lead to the expense of one or more dumpsters needed in which to get rid of all that stuff. Some belongings also depreciate, so there is a large price for accumulation. Training yourself to bypass the allure of more stuff is a tremendous strength for your financial success.
Make financial focus an activity
Make a game of it. On Sundays, get together with your family to put the value of money into practice. Go out to yard sales and estate sales, not just for budget purchases that can save you a lot of money, but as an excellent visual of what happens to the things you have accumulated in a lifetime. There’s something very powerful in seeing someone else’s treasures lined up, on sale for pennies on the dollar, each item a financial loss for the original owner.
A Sunday focus on bargain shopping in the graveyard of another’s treasures can energize your financial mindset. This will strengthen not only your ability to make purchases of things you need, but will also help your goal of saving for your retirement with the proceeds.
Also, clip coupons and load coupons onto your phone from apps. Check out the sales of the week and take advantage of smart money steps for the things you and your family actually do need right now.
Focus, sharing the knowledge, and making financial health a real part of your existence powers up your financial success mindset. For more details, listen to these two podcast snippets.