How to shift from a poor mindset to a rich mindset
Think about the average Aussie that you know in your life. If they had a windfall from investing, the lottery or an inheritance, would they:
a) Spend up on a holiday, new boat, TV or expensive party to celebrate?
b) Use it as a foundation to improve their situation and that of their kids and grandchildren, by building an intergenerational wealth vehicle?
The answer may tell you whether your friend has a rich mindset or a poor mindset.
For most people, the answer is probably somewhere in between, so even if you don’t have a poor mindset, there is no reason you can’t adjust towards the rich mindset in some way.
It’s about the mind, not privilege
First of all, just because you have a poor mindset doesn’t mean you’re poor. There are a lot of people out there with money that engage in way too much short term consumerism. Likewise, you can have a rich mindset even if you come from poverty, as long as you see the bigger picture and strive to improve your lot in life.
So, think about your own situation and attitude in life and consider some of the following personality traits to identify how rich or poor your mindset might be.
Using money to achieve
When someone with a rich mindset comes into money, they use that to invest. Not just in assets, but in education, in business and in the future. The money is a vehicle to help them get started and keep them on the path they need to tread.
Those with poor mindsets instead see a windfall as an opportunity to spend on something for themselves. New clothes, a car, a watch, a fancy restaurant. They treat themselves and are back at square one before they know it.
A rich mindset looks at long term rewards for hard work in the short and medium term. They are willing to invest time, money and effort into something that may not pay off for a long time.
Poor mindsets however are after short term returns. ‘I did the work, I put in the effort, where’s my payday?’
What the world owes us
If you have a household income of $100,000 plus per year, you are in the top 1% of the most privileged people in the world. Having a perspective capable of understanding the big picture is another characteristic of a rich mindset. This means understanding that life can be unfair, the universe exists with no regard for the fate of the individual and that great success is so rare it is almost statistically impossible.
On the flipside, someone with a poor mindset thinks the world owes them something. They may not seek to make their own luck, but instead use that energy to complain about their bad luck. They want someone else to come and improve their situation, because they shouldn’t have to.
Respect for competition
How often do you hear stories about business moguls being friends as well as competition? The rich mindset welcomes and celebrates the success of others and respects the achievements of rivals.
The poor mindset feels jealousy, resentment and suspicion towards successful contemporaries and seeks to cut down the tall poppy.
The pursuit never ends
There is no real end goal for the rich mindset. The goals they set along the way allow them to enjoy small victories, but the journey towards improvement continues endlessly. That’s why Warren Buffett is still investing and why so many business moguls work into their nineties and tend to die before they retire.
The poor mindset however sees every bit of work they do as a necessary displeasure so that one day they can stop working altogether and have an ideal retirement where they relax. The attitude that work is something to be endured may mean they miss the opportunities along the way, or lack the ambition, to get them into a much better position to enjoy retirement than they can realistically achieve.
Want to change your mindset?
Take a step back, clear your head, set some goals and begin on the path to achieving them. Look at the big picture, be strategic, embrace competition and work hard in the short term for gain in the long term.
Be smart about how you invest your money, your time and your effort. And if you need help getting started, invest in your knowledge and reach out to b Invested.