7 Mental Habits That Will Make You Wealthy
More than anything, your thoughts determine your success. This is also a truism when it comes to your wealth. Everything from your daily spending decisions to how you invest relies on your decision-making.
Ultra-successful individuals understand the importance of mental habits, and utilize them day in and day out to ensure consistent success and wealth creation.
Here are some of those mental habits you can utilize today:
A big misconception about wealthy people is that their constant pursuit of more wealth also makes them constantly unhappy with what they currently have.
In fact, rather than being unhappy with their car as soon as the latest model comes out, wealthy people do the exact opposite. Don’t believe me? Studies have found that people who are grateful have 10% higher incomes.
Part of this has to do with viewing luxury differently and not correlating higher income with more spending. But there are also a slew of priceless benefits that come from gratitude, such as better relationships with others and improved health (according to Harvard research).
Although you should always be reaching higher and higher, you should never forget or take your past successes for granted. You can start this today by using proven methods to increase your gratitude, such as keeping a gratitude journal or merely reflecting for a few minutes.
Look at the Long-term Game
As Warren Buffett once wisely said, “Someone is sitting in the shade today because someone planted a tree a long time ago.”
A large portion of wealth-building involves looking at the long-term results and consequences of your decisions, while filtering out the short-term noise. For instance, instead of looking at the short-term appeal of a new flat screen (which will fade quickly) they instead focus on the long-term value of creating a business or growing their wealth in the markets. They also develop the patience
Wealthy people look at the long-term value of every dollar they spend, and you should too.
Set aside time to think
Thomas Corley studied the habits of millionaires across the globe in his book Rich Habits: The Daily Success Habits of Wealthy Individuals and he found that wealthy people spend at least 15 to 30 minutes a day just thinking.
It seems obvious that thinking is important for wealth creation, but ask yourself this–during a busy workday, how often do you actually spend time thinking instead of just doing?
As tempting as it might be to dive straight into your emails Monday morning, take a hint from Corley and spend a few minutes prioritizing instead. And rather than goal-setting on autopilot, take the time to look at the big-picture and examine things like your career goals and business relationships. I do this by taking my rescue pup Magic for a walk during the day, and you can also find some similar excuse to get out of the office and reflect.
Harness the power of the growth mindset
Carol Dweck, a Psychologist from Stanford University, found that by and large, successful people use something called “The Growth Mindset” while those who are not as successful followed what’s known as the “Fixed Mindset.”
The root of these polarizing mindsets lies in your belief that your talents and success are either finite or virtually unlimited. For example: With the fixed mindset, if you’re good at writing, you might think your talents only lie there, and you’ll avoid investing. With a growth mindset, you’ll have no hesitation trying out new ventures and skills – even if you’re not the best at them right away; you’ll practice and get better over time.
Utilizing this mental habit is a scientifically proven way to expand your skillset, and eventually your wealth.
Set goals, don’t make wishes
Successful people didn’t get to where they are today through daydreaming. As Thomas Corley put it, “If you want your wish or dream to come true, you need to create goals around them, pursue those goals and achieve those goals. You need to break your wish or dream down into manageable tasks that you are able to perform.”
For instance, wishing you were a billionaire is all well and good, but it won’t get you anywhere. Instead, by setting goals like “I’ll save and invest an extra $200 a month,” you’ll get there much quicker than you ever thought possible. So keep that big-picture dream in your head, but don’t forget to break it down into manageable realities.
Wealthy and successful people also expect to be wealthy and successful. Unlucky people expect just the opposite. Quite often, these odds turn out to be true.
Extensive studies on positive thinking back this up. A landmark paper by Barbara Fredrickson found that “positive emotions momentarily broaden people’s attention and thinking, enabling them to draw on higher-level connections and a wider-than-usual range of percepts or ideas.”
Over time, those skills picked up with a positive attitude translated into “becoming successful, healthy, and happy in the months and years to come.”
Think back to the phrase, “some people just seem to have all the luck”. Unsurprisingly, optimism plays a key role in success, as it greatly affects your perception. So dare to think positive—it’s a mental habit that will snowball into even more wealth and success.
Treat your time as money
Time is the most valuable – yet finite – resources we possess. Wealthy people understand this better than anyone, so they are incredibly choosy about how they spend this capital.
Even if you can’t set your own schedule for the entire day, you can and should be picky about the opportunities you’re presented. As Warren Buffett said, “The difference between successful people and everyone else is that successful people say ‘no’ to almost everything.” Don’t feel obligated to spend your time contributing to others’ success when you’d rather help yourself.
Are there any mental habits you use to increase your wealth and success? The Love The Hustle Tribe would love to hear from you!
If you want to learn more about investing, check out Founder Elle Kaplan’s firm LexION Capital to learn more.