Do you have the right money mindset to get rich?
Written By Tiffany Woodfield, Financial Coach, TEP, CRPC®, CIM®
The right money mindset for growing wealth is the belief that you can grow and change, combined with the desire to release limiting beliefs that are holding you back.
It’s one thing to want to build wealth and another to create the mindset to achieve that goal. If you don’t identify the subconscious beliefs that are keeping you from achieving your money goals, you might not be able to reach your destination.
In this quick guide, you’ll discover four steps you can take to develop the right mindset for wealth creation.
As a financial professional, I work with clients with a high net worth. I’ve had the chance to analyze how my clients think and what makes them different. At the same time, I’ve spent the past 20 years on my own wealth-building journey, so I know what works and what doesn’t.
I hope these simple tips will help as you embark on your own wealth-building journey.
But first, let’s talk about how much this money mindset stuff actually matters.
Does a money mindset matter when you’re working to increase your wealth and get rich?
Absolutely! If you don’t understand your money mindset, you can unintentionally find it working against you.
How’s that? If your attitude towards money and wealth doesn’t align with your wealth-building goal, all your hard work will not pay off as effectively as it should. One part of you will be working hard towards the goal, while the other part will be sabotaging your efforts.
Let me explain!
Think of a plastic bucket — like the one you used to take to the beach as a kid. The plastic bucket represents the container for your financial dreams. When your bucket is full, you have reached your goal and are rich.
OK, so you’ve got your bucket and are busy working to create wealth. You’re filling your bucket with water (wealth) each time you take positive steps towards getting rich. You’re using logical tools such as a financial plan or a budget. You’re monitoring your spending and starting to invest.
But wait? Why isn’t the bucket filling up!?
There are holes in the bucket!
If you have a negative money mindset, it’s like having holes in your wealth-creation bucket. If you haven’t plugged the holes, the water will flow out the bottom. This leaky bucket makes your job as Head Wealth Creator much harder.
It’s critical that you build a strong money mindset so that you don’t have any holes in your bucket and aren’t leaking out your wealth.
Ok, so you’re ready to start healing the holes in the bucket. Let’s talk about how to develop your money mindset.
How do successful individuals develop their mindset towards money and wealth?
Think of getting in your car and using your GPS to go to a new location.
You need to enter your starting point and the destination. Successful individuals understand this when setting a financial goal, and they follow these steps:
1 – Know your starting point by focusing on two key areas.
Internal: Your attitude and beliefs around money & wealth.
External: The actual numbers representing where you currently are with your finances, where you want to go, and your timeline.
2 – Determine road conditions and create a plan for how to address these.
- Set a goal for changing your negative thoughts to positive ones so you can release your money blocks.
- Spend time with people who have the money mindset and attitude you want.
- Learn techniques to earn more or spend less (i.e. values-based budgeting).
3 – Pivot when necessary. But be consistent in staying on route to reach your destination.
Check-in to see if you’re on the right track.
4 – Arrive at your destination.
I’ve written an entire blog post about money mindset and how to develop the right money mindset, so check out that money mindset tips post here or download my meditation.
How do spending habits impact wealth accumulation?
It is a simple equation: you must earn more or spend less to accumulate wealth.
If you don’t nail down both parts of the equation, you’re holding yourself back from wealth accumulation. Often, the trap people fall into is that as they earn more, they spend more. They don’t have anything extra to save or invest to accumulate wealth. By understanding your spending habits, you can control this part of your equation directly affecting wealth accumulation.
The Psychology of Money is a great book to read if you want to understand more about how earning and saving are not the same skill.
Is there a connection between happiness and wealth?
Yes, there is a connection between happiness and wealth.
Happiness follows wealth up to a certain point. It used to be accepted that your happiness plateaus after about $75,000 in income a year. In 2022, a study challenged this theory and found that increased wealth can create more happiness but impacts people differently.
According to this study, there isn’t the same plateau for everyone. According to the study authors, “Happiness increases steadily with log(income) among happier people, and even accelerates in the happiest group.”
In other words, the happiest people have much less of a plateau – their happiness grows in tandem with their wealth. They also found that people attain a higher level of wealth before plateauing — higher than originally thought.
Quick Video: 3 Manifesting Phrases for Money
Having the right money mindset allows you to believe and focus on what you desire. But even wealthy people can feel worried or stressed about money. So what can you do about it? These are three manifesting phrases that I use frequently to shift my mindset around money if I’m struggling with a feeling of lack.
Is continuous learning important in managing money and building wealth?
Having financial literacy, as well as understanding your attitude and beliefs towards money, increases your ability to create wealth.
Knowing how your beliefs around money limit or encourage you to succeed and keep improving your money mindset is important. But it’s also critical to understand basic investing, budgeting, and saving tools so you can make educated financial decisions.
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Related Articles
💎 How To Have an Abundance Mindset with Money
💎 How Your Money Mindset Affects You and How To Change It
💎 How to Become Rich in 4 Steps
💎 How To Get Your Mind in the Mindset of Saving Money
About the Author
TIFFANY WOODFIELD is a financial coach, cross-border expert, and entrepreneur based out of Kelowna, BC. As a TEP and associate portfolio manager, Tiffany has extensive experience working with successful professionals who want to leave a legacy and enjoy an adventurous, work-optional lifestyle. Tiffany combines extensive knowledge from her background as a financial professional with coaching and her passion for personal development to help her clients create a unique path that allows them to live their fullest potential. Tiffany has been a regular contributor to Bloomberg TV and has been interviewed by national and international publications, including the Globe and Mail and Barron’s.