How to Develop a Wealthy Mindset in 5 Simple Steps (Millionaire Mindset)

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Different people view wealth differently. Some say, being wealthy means having an abundance of money, others call it heaving good health and living a desired lifestyle.

But wealth can mean something much more.

Wealth is a state of the mind.

In order for you to achieve wealth, you’ll need to develop a wealthy mindset.

What is a wealthy mindset?

A wealthy mindset is one that is characterized by feelings of abundance and prosperity. Individuals with a wealthy mindset typically believe that they are capable of achieving their goals and that they deserve to be successful.

People with a wealthy mindset tend to be optimistic and have a positive outlook on life. These individuals usually enjoy taking risks and are willing to work hard to achieve their goals.

A person with a wealthy mindset is sometimes also called to have a rich mindset, where the state of the mind is able to bring in the things you desire.

Read Also: How to Create Passive Income With Your Expertise?

How to develop a Wealthy Mindset?

A person with a wealthy mindset seeks to build relationships based on trust, mutual respect, and a humble heart to learn. People with a wealthy mindset are less about what we have and more about what we believe is available to us.

These characteristics help them to build strong relationships with others and naturally help them succeed in life. And here are the steps you can take to develop a wealthy mindset.

1. Set goals that are ambitious but achieveable

People with wealthy mindsets set goals. If you want to attain a wealthy mindset, the first step you should do is to set a firm goal on the things you want.

We want to set a goal that is high enough so that we won’t be able to achieve it easily, but realistic enough so we won’t get disheartened. 

One of the best ways to set goals is to use the SMART goal method.

What is SMART Goal?

SMART is the abbreviation for the following:

  • Specific – Your goal must be clear and well defined
  • Measurable – It must have a way to measure its success
  • Attainable – It is achievable in the set time-frame
  • Relevant – This must be relevant to your final goal which you are seeking
  • Time – There is a date where this goal has to be achieved

There is a secret that many Millionaires use when they are working towards their goals.

Break down your goals into smaller achievable goals

In order to achieve any goal, it is important to break it down into smaller, more achievable goals. Achieving each small goal allows for a sense of accomplishment along the way and makes the ultimate goal feel more attainable.

Successful people know how to break big goals down into smaller ones and focus on each one. This way, you have a better chance of reaching your target.

Example of Saving Goals

Many people dream of saving a 5-figure within a year.

Saving goals such as saving $10,000 per year seem hard, but when you break it down into smaller pieces, achieving your saving goals will seem much easier.

If you want to save $10,000 per year, break down the process into months, weeks, and days.

  • 1k = $84/month or $19/week or $3/Day
  • 2k = $166/month or $38/week or $6/Day
  • 4k = $333/month or $77/week or $11/Day
  • 6k = $500/month or $115/week or $17/Day
  • 8k = $666/month or $154/week or $22/Day
  • 10k = $833/month or $192/week or $28/Day

Saving $10,000 per year sounds a lot, but saving $28 a day sounds achievable.

If you want to know the secret of saving $10,000 per year, or even $50,000 per year, you can check out our other article: How to save $10,000 per year?

How to develop a Wealthy Mindset - Set Goals
Set Goals

Read Also: 5 Steps Guide to Get Out of Debt

2. Take actions that reinforce your mindset

Heard of ‘The Thinker’?

He had been thinking for centuries and is still “thinking”.

A ‘Thinker’ will not achieve anything, because,

“He who think and not act, will never be able to achieve anything.”

People with a wealthy mindset, don’t only think as the wealthy do. Successful people reinforce their goals and dreams with actions.

Instead of waiting for the apple to magically drop down from the tree because they are hungry.

Those with a wealthy mindset do what they need to do to achieve their goals.

These handful of people with a wealthy mindset aren’t afraid to work hard to actually produce that wealth they desire.

Our advice?

Start work towards your goal today!

Don’t know what this means? Below is some example to guide you on some of the dos and don’t of people with a wealthy or rich mindset:

People with a wealthy mindset don’t do these:

  • Wasting time watching TV dramas
  • Wasting time on social media
  • Wasting time watching cat videos on YouTube
  • Wasting time sleeping in late because it is the weekends
  • Wasting money to impress others

People with a wealthy mindset do these:

  • Use time to read books
  • Use time to learn a new skill
  • Use time effectively even if it is on the weekends
  • Use money effectively to achieve their goal

Every single action they take is to let them move closer to their goal. People with a wealthy mindset reinforce their goals with their actions.

Question to ask yourself:

“Everyone have 24 hours, why some end up succeeding while others fail?”

How to develop a Wealthy Mindset - Reinforce with actions
Reinforce with actions

Read Also: Good Debt vs Bad Debt

3. Avoid negative people with a victim mindset

Does it mean to discriminate against people who are having a tough time in life?

No, absolutely not, in fact, you should help them in their times of need.

‘Avoid negative people’ means to avoid those who have a poor mindset and no ambition in life.

These people are people with a poor mindset. They are the whiners who blame everyone and everything in life.

Avoid these negative people with a mindset of a victim, because they possess a superpower to contaminate everyone around them to become whiners. These toxic people will make you lose track of your goals, and become a whiner like them.

How do identify negative people?

  1. They blame others for the mistake they make.
  2. They are takers, not givers of society. 
  3. They think of the world as a zero-sum game.
  4. They are manipulative and toxic to your emotions.
  5. They lack the ambition to succeed in life.

There is a saying from the wise:

“You are the average of the five people that you spend your time with.”

How should you grow your wealthy mindset?

Mix around with people whom you respect and admire. These are people who have to succeed in creating the wealth that you desired. Ask them to be your mentor.

Learn from them about how different their way of thinking is compared to people with a poor mindset.

One of the main differences I notice is their way of thinking when facing a challenge.

  • A person with a poor mindset will say, “I will never be able to afford to buy a house and live here.”
  • A person with a wealthy mindset will say, “What actions do I need to take, to be able to buy a house in this area.”

Which of these people will eventually overcome their challenges and afford to get what they want?

A person with a wealthy mindset will most probably be able to overcome his challenges as is willing to work for what he wants. While the person with a poor mindset closes all possibility of achieving his goal by simply saying he couldn’t afford it.

Negative people (Poor Mindset) says: “I will never achieve it.”

Positive people (Wealthy Mindset) ask: “How do I achieve it?”

How to develop a Wealthy Mindset - Avoid Negative People
Avoid Negative People

Read Also: 3 Steps Success Formula and 25 Traits of the Wealthy

4. Never stop learning

People with a wealthy or rich mindset are humble and never stop learning new things. Successful people continue to learn and grow even when they are successful. This is how the rich get richer, and the poor get poorer.

“Best investment is to invest in yourself”

Warren Buffett

Why do rich people get richer and poor people get poorer?

The main reasons why rich people get richer and poor get poorer over time is because the rich have the knowledge on how to make money and keep them, while the poor don’t.

There is a huge difference in how the rich and the poor spend their money,

  • The rich invest in things like businesses, stocks, and homes.
  • The poor spend their money on things like consumption or debt.

Many people who strike the lottery often end up broke.

Millionaires and billionaires are not rich because they have tons of money, but how they utilize the money they have to make more money.

How do the rich gain knowledge on how to make money and keep them?

A typical CEO read around 1 book a week, this is equivalent to 54 books a year.

When compared with a normal employee, most people read less than 2 books a year, which means an average person takes almost half a year just to finish a book.

The difference in the number of books and types of books they read during their spare time differentiate the rich from the poor.

Knowledge can be gained from a wide variety of resources, while books are the most common source of knowledge, you can gain insights through documentaries, educational youtube videos, or blogs such as this.

Learning is a way of life.

Learning something new is definitely harder at first. But as you get into the habit and practice, it will become easier as time pass.

Opportunities are for those who are prepared.

For a start, here are some of the best books you may want to check out from My Library.

How to develop a Wealthy Mindset - Never stop learning
Never stop learning

Read Also: Rich Mindset vs Poor Mindset

Step 5. Think Big

Thinking big is what drives you to success. Although we should start with small digestible goals. We should always have a big final goal at the end of the journey.

Nonetheless, it is OK not to always achieve the big goal in life as long as you try your best.

“Shoot for the sky, because even if you miss, you will still hit the clouds.”

You want to start a business and aim to make a $1 million dollar profit by the end of this year (This is your Big Goal). But instead, you are only able to achieve in making half a million-dollar profit.

There is no shame in this because you are still much better than those who have not even started in their business.

You are already a huge step ahead of them and one step closer to your goal.

For instance, my goal is to help 10 Million Readers to come and journey with me in this blog on personal finance, investing, and business. But to this day, I am still far from my goal. Honestly, I am not even reaching 1/10 of my final goal.

Will the journey be tough? Will it be a long journey?

Yes, I do think it will take me lots of effort and time to reach my final goal. But as long as I work towards my goal, one step at a time. I know I will reach my goal sooner than I thought. In fact, I have already done much better than I initially thought.

With you onboard this journey, we will eventually hit our goal in no time.

How to develop a Wealthy Mindset - Thinking Big
Thinking Big

Read Also: 3 ways to make $50,000 Passive Income per year for Retirement

Can anyone develop a wealthy mindset?

The answer is yes – anyone can develop a wealthy mindset and journey to succeed in whatever they desire. Learning how to develop a wealthy mindset take a lot of work and determination to succeed, but it is essential for becoming successful in life because it allows you to see your problems as opportunities for growth and progress.

A wealthy mindset helps to put you on the right track to work harder than anyone else to achieve your goals and achieve wealth.

Thinking without action will not lead you to your final goal. We have to reinforce our thinking with the appropriate actions.

While the appropriate actions are guided by our knowledge, we have to constantly learn new things so that we will make the best possible actions that bring us closer to our goals.

Check out our post on rich mindset and poor mindset to learn the difference between these 2 mindsets, and why a rich mindset is important.

How to Develop a Wealthy Mindset Step By Step
How to Develop a Wealthy Mindset Step By Step

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Founder & Financial Writer at Income Buddies | Website | Posts by Author

Antony C. is a dividend investor with over 15+ years of investing experience. He’s also the book author of “Start Small, Dream Big“, certified PMP® holder and founder of IncomeBuddies.com (IB). At IB, he share his personal journey and expertise on growing passive income through dividend investing and building online business. Antony has been featured in global news outlet including Yahoo Finance, Nasdaq and Non Fiction Author Association (NFAA).