Image yourself purchasing an item worth over US$100k and you don’t even border looking at the price tag. Practically; you just saw it, loved it, and buy it: A stress-free life right? I guess. Can you really ‘think yourself rich?’ Well I’m here to tell you that, it is not only possible; but that, it is also actually the best chance you have of making a lot of money and successfully build your wealth. Many of us dream of living in a large luxurious house in a sunny country, we imagine wearing smart suits that exude power and confidence and we wish that we didn’t have to make so many hard choices because our funds can’t support the lifestyles we want to live.
If that sounds familiar, then you need to make a change. And as with ALL things, that change starts with you and your mindset. If you want to be wealthy, then what are you doing about it? And is there any chance that you may, in fact, be going about it the wrong way? Well, let’s discover this together as I’ll be enumerating the seven powerful mindset hacks you will need to start practicing ASAP so as to successfully grow the wealth you actually need to sustain your desired lifestyle.
Wealth and Your Career
Ask the average person on the street what they would hypothetically need to do in order to become richer and 99% of them will tell you the same thing: “get a better job“. Okay, fair enough. They are not wrong per say. Indeed, getting a better job won’t hurt their income and that in turn will likely mean they get richer at least a little.
But in fact, this is not the whole story. And what’s more is that, this isn’t even the main part of the story. Wealth and salary are not in any way ‘inextricably’ linked. They are related sure, but only to a small degree. If you wanted to see an equation telling you how to get wealthy, then it would certainly look like this:
Income – Outgoings x Time = Wealth. So it’s how you individually manage this wealth formula that will make you wealthy irrespective of how much you earn. Bear in mind money is just a number with a currency symbol, so it’s how you’re able to manipulate these numbers which guarantee your chances of been prosperous and wealthy, giving you exactly the living lifestyle you’ve always been dreaming of. Let’s take a look of the wealth equation below.
A Negetive Wealthy Equation:
So, let’s say that your income is determined solely by the amount of money you are making at work. Even in that scenario, you still have another, equally as important factor. That is your outgoings. If you’re earning a cool million dollars a month but you also waste a million dollars a month of lavish holidays and on nights out and clothes, then you are ultimately not going to be very well off. Rather, you’re likely to lose money over time.
A Positive Wealthy Equation:
But if you are earning a more normal $2500 a month but you only spend $500, then suddenly you are saving $2000 per month. In 12 months, you’ll have $24,000 saved away. That’s a decent down payment on a house! So, you now have two options. Two ways to get richer; One is that you seek to get a better job and increase your income and the other is that you save more money and spend less.
Spend Less and Saving Pennies
When I was at university, my summer job was working at a yacht club. Specifically, I was a waiter in one of the restaurants there that was actually paid for and owned by the clientele of the club. The club was located in Sandbanks, England – an area that is also sometimes referred to as ‘millionaire’s row’ because it has among the most expensive real estate in the world along the seafront.
So, these are people who own yachts and who belong to a club that is situated in one of the wealthiest parts of the world. Suffice to say that they were not struggling for cash. And of course, what many people would point out to me is that this should likely result in pretty big tips!
Except that’s not what happened. In fact, I received some of the worst tips I have in any job. I had a lady called me over to secretively give me 20p (around 30cents) for my hard work. She literally told me to buy myself something nice. And this is bearing in mind that it is standard practice in England to tip 10%. The meals usually cost close to $150.
I remember telling my Mum this and her response was, “how do you think they got rich, dear?”
Look, I’m not here to tell you; you should become stingy with tips. But what I am telling you is that the wealthiest people recognize that every little bit adds up and makes a very big difference in the long run. Your aim now is not to fritter. That $3 coffee you have every morning on the way to work is actually $15 over the course of a week. $60 over a course of a month and $720 over the course of the year.
That is a tiny amount and that’s before we have even considered all those other things you likely pay for that you don’t really need. Maybe your Spotify account, Netflix, 100+ TV Channels, gas for the car for all those trips you don’t really need to make. It adds up. Worse are all those larger purchases we make on an impulse.
These are things like clothes that we think will make us look smart, games consoles, PCs, overly advanced phones. How much did your phone cost you? If you’re on a contract, then chances are you’ll be paying $700 or more for it. Now ask yourself how much more that phone really does than something for $300. Do you really need the fastest processor around? Considering that even an old phone can play everything in the app store?
Do you really need a 30 megapixel camera? Or a 4K screen? Can you even see the difference between 4K and 1080p? The real problem here is marketing, the internet and other people. We have unfortunately been conditioned to associate these items with success and to find them highly desirable. We want to get the latest phone, car, computer etc. because it looks so sexy in those adverts. But the reality is that these things don’t really bring us happiness.
Likewise, we are told that we need to buy a large house, go on lavish holidays. Is this really for us? Or is it so that we can look successful to others? I’m not telling you to cut back on all the things that make you happy here. There is no point in having wealth if you aren’t going to enjoy it and have a better quality of life for you and your family.
All I’m telling you is to make sure you are certain of what it is that does make you happy. And that often means deciding what you don’t need and what you should be prioritizing. Have you always dreamed of a beautiful big house? Then why not stop going on those big holidays for a while? Why not stop buying widescreen TVs? And how about considering getting that big beautiful house in a less expensive area?
Heck, if you move to Spain, then there are places where you can live in a five bedroom home with swimming pool and roof pool and it will only cost you $200,000. You could almost buy that in cash and think about how much money you would start making then once there was no mortgage!
Conversely, if all you want is to travel the world, then you can change your accommodation to something less glamorous. How about moving to quiet neighborhood and living in a spare bedroom for a while? Your outgoings will be low, so you can enjoy going on more holidays and still save up that wealth. Know what you want to achieve with that money. Know what wealth means to you and then you can focus on being more efficient with your money.
This will also help you to set up a budget and/or a plan. If you know how much you have coming in and how much you’d like to be making per month, saving per month and spending on things that make you feel wealthy per month, then you can create a budget that will help you to reach that point within a specific timeframe. This then is where you can look at those small things you can cut out to save more money.
If you have a spreadsheet that contains all your income and all your outgoings per month, then you can look at what kind of impact cutting coffee from your routine would actually make. You’ll be left with a total profit at the end of each month and you can decide how much of that you want to put into savings and how much you intend to spend on other things.
You can even set up standing orders in your accounts so that money saved automatically gets transferred to a savings account. With such a spreadsheet, you can then multiply the savings you are making by X number of months and see projections of what your finances are likely to be at certain points in the future. With these formulas, you can be pretty much sure of when exactly your wealth will stack up, and from here you can start hitting your chest because your calculations has been set and confirmed, meaning you can visualize your wealth from an X period of time and be certain about your wealth, “this is what I call the wealth formula”.
At this point in your life, you no more live a life of “hope” rather you live a life of “know”. What i mean is, you stop living the life of hoping to be wealthy because you don’t have any formula at hand to guide you build your wealth. But with the life of know, you live a life of certainty and assurance because you hold the wealth formula in your hand which guarantees your success at a 95% rate. At some point, things can only fall apart if you fail to practice your wealth formula.
Need more money for an upcoming expense? Then look at something else you can do to cut your expenditure. This is what’s called ‘financial modeling’ and it’s a powerful tool for building your wealth on a successful space rather than just letting it ‘happen’ without your direction or input.
A Couple More Ways to Build Wealth
And what if you have run out of things you can cut in order to save money? What if you are living on as little as possible? A few other options include changing your providers for bills, selling off old items, or even moving money between accounts in order to receive bonuses. A friend of mine does this religiously and will even take out credit cards with 0%APR, just so that he can put all of that money into an ISA and then make profit on it.
If he gets a cash incentive to signing up for anything then he will sign up! And he never buys a new piece of tech or even clothing without taking one of the older items to sell and thereby offset the cost. Something else to note is that if you have a dream of a wealthy future, then you might need to ‘be okay’ with living a little more simply for a while in order to get there. The wealthy lifestyle is a journey, which requires a lot more of sacrifices than pleasures. Certainly when you successfully complete the journey and the wealth is now stack up, and then you begin to live a life of a lot more of pleasures than sacrifices.
You need to put the work in now, to reap the rewards in the future. No one gets wealthy overnight, it’s an entire process; except you robbed a bank, then that’s okay, your wealth can be achieved overnight. And this is hard because it often once again means forgetting the conventional signals of wealth and success. Once again, you have to do this for you and not be worried about what others might think. So for example, if you want to someday have a beautiful home, one of the very best things you can do is to live with your parents if they will let you.
Sure, it’s not glamorous and it’s not fun, but if they charge a small amount of rent you’ll be able to save so much per month that it will help you to get on the property ladder MUCH faster. You could then buy a smaller home in a less attractive area but flip the property to make a big profit. You need to put in the graft and have an eye on the future. Your ultimate goal here is to sit on that wealthy seat in the future, so when you’re walking the wealthy path, whatever you’re doing now shouldn’t matter to you, even if the current lifestyle will let your friends or colleague laugh at you, be completely deaf about whatever they might say, off course because you know where you’re going.
Likewise, you might need to learn to stop trying to demonstrate your wealth and stability to friends. Have you ever met up with a friend and eaten in a restaurant that you can’t really afford because you want to see them and because it is embarrassing to suggest eating somewhere cheaper? As you can imagine, this isn’t exactly conducive to getting wealthy quickly! Again, you need to be willing to tell them that you can’t afford it and to go elsewhere. “How about you suggest they meet you at your house?”, that’s also a great way of saving money. Again never care, however they might think of you. You’re simply cutting your coat according to your size.
Believe me when I say only those same people who laughed at you when you were busy walking your wealthy path, will claim to be your very best friends when you finally sit on that wealthy seat and grab the gold crown, driving that dream car, putting on gold watches, and buying those luxurious US$100k stuffs without having to look at the price tag. Once again, you don’t achieve this overnight. Some people take 5 years to build their wealth, some take 2 years, others take 10 or even 20 years depending on how much wealth you’re comfortable with. One thing for sure is, as long as you follow your wealth formula, it’s a 99% guarantee for you to live your dream lifestyle in the future.
Setting Up Multiple Revenue Streams
Next come the revenue streams. We’ve seen how you can actually become richer without changing your job, simply by cutting off excessive “wants”, and spending less on “needs”. The other strategy is to become wealthier by having more than one income stream. Once again, your salary isn’t determining your wealth! So, what might this mean? One simple option is to take on another job, such as a weekend job.
If you are happy to work on a Saturday, then you will have potentially $150 extra to spend each week! That’s $600 per month or $7,200 per year! Save that and in a couple of years, you can be living in a nice house – or you can use it right now to feel that bit wealthier and wear those fancy clothes. This is a big sacrifice though granted. So, what most people would prefer will be to earn money online, for instance.
Tim Ferriss describes creating a ‘muse’ in his book The Four Hour Workweek, which is a small online business that generates a passive income. This can be as simple as finding an affiliate product (a product that you sell for commission) and making a simple website recommending it, then sending people there with ads. This is very low maintenance but can potentially make a fair amount of money.
Some of the major revenue streams for most wealthy people today comes from the internet. The internet has made 1000’s of people to become millionaires including some few people I know personally, talk-less of the most famous once you might have heard of. Internet money is becoming a great source of income to many people and equally helping them to build their wealth from several niches. One of which is online streaming platforms like; YouTube where you can upload a video and get paid US$1,500 when your videos receives one millions streams, same here on Thinkle where you can upload a memory and get paid US$10,000 when your memories receives one millions streams. Other online streaming to add up your revenue streams is Spotify, which is mostly for music artist; one Spotify you can upload a song and get paid US$2,500 when your songs receives one millions streams.
You can also make money from arts and crafts of course and sell some things you make on the side, or you can buy and sell items in bulk on eBay! Then there are the other options that work offline: these include such things as renting out rooms to students, such as mowing the neighbor’s lawn, cutting hair, teaching an instrument etc.
All these options will help you to make an income that will be additional to your current income. The most important fact here is “time”, you need to make use of it wisely. When you’re on a mission to become wealthy, idle time becomes your worst enemy. Remember, “time is money”, if you’re wasting time, you’re indirectly wasting money.
Not only does this of course gives you a better total, but it will also help to make you more ‘resilient’ so that if anything ever happens with your main job, you’ll of course still have some money coming in. Another tip? The more you make, the more you’ll make. Try to look for investment opportunities, whether that means buying a second house and letting it out to someone else, or whether it means moving to an area that you know is up and coming.
My last words to you as I conclude this article is, while you embark on your journey of wealth building, keep in mind “money is just numbers with a currency symbol”, “life is all about time management”, “wealth is income minus expenses multiply by time”. Make a few right choices that will build up over time. Know what you want. Be patient. And avoid the temptation to splurge on the short-term gratification. That is how you get into a wealthy mindset! which in turn contributes over 90% for successfully building your wealth. Good luck.