Creating a wealth foundation by creating the wealth mindset

CREATING A WEALTH FOUNDATION : EARNING FINANCIAL FREEDOM
by CREATING THE WEALTH MINDSET


The wealthy think differently. This is true and an inescapable fact. The other thing is that there is a poor mindset and a wealthy one. The rich have a different approach to life. They plan, risk and manage their money in different manner. They also have a positive attitude towards life and opportunities. The first and most important step to true financial freedom is creating this mindset for yourself. This also involves a no-holds barred, honest look at your life and assets.

Creating a starting place is as important as moving forward, so it does not matter if you start with  Php 1, or Php 10,000,000. It is all about the mindset and the will to move forward to creating your wealth.


1. Redefine what wealth means for you
Being "rich" simply is a term for many people. Technically, wealth or being wealthy is defined as having an abundance of resources or possessions. The high life does not equal wealth. Having a gigantic mortgage for a beautiful home or a huge car payment does not equal wealth.

Are status symbols your end goal? Does wealth for you mean that ability not to worry about bills or how much is left in you checking account at the end of the month? Does it mean providing comfortably for your family or being free from financial worry? Does it mean the ability to afford luxury designer goods or getting a membership to the local country club? Being rich or being wealthy can also mean you enjoy a comfortable retirement.

Does wealth mean something totally different to you? Your definition of wealth goes a long way towards setting your goals.



2. Another important step when it comes to managing your wealth is to set goals.
Start with an overall battle plan, such as "By the end of the year, I will have more at least $500,000 in savings." Why? You need to be visionary to be wealthy. A common factor that sets the millionaire apart from the average Joe is this : they know they wanted to be wealthy and they were willing to take thee steps to reach their goal.

To reach one goal, you have to smaller goals and reach them. Every Little step you take, every penny you save matters. Use smaller goals as stepping stones. For example, to save that $500,000 one needs to set aside $5000 every single month, invest or cut down expenses.



3. Manifest your financial destiny by setting your subconscious towards specific goals.
 Create dream charts by cutting out pictures of your dream status or words that empower to help fuel your subconscious and get you to wear you want to go. Never underestimate the power of your will and mind. Wealthy people never say they cannot do it, they think of ways so that they can.



4. Know how much you are worth. Take stock of all your assets and income and subtract your debt. Many people go through life financially blind, not knowing how much they are worth or how much  they owe and often end up blindsided by money



5. The test: Your age x ( your average household income from all sources inheritance) Divided by 10 = your net worth. The rich have a net worth. The rich have a net worth often double or triple the amount. The average American has less than half. The goal is to double your net worth.



6. The truly wealthy consider themselves as the foremost asset. Accordingly, they pay themselves first. They also tend to invest in themselves first, especially when it comes to education. Take classes and groom yourself to be the millionaire, entrepreneur and success you want to be.



7. Guard your ideas with the passion of the Secret Service. Commodities are now no longer limited to labor, but have expanded to include ideas, imagination and opportunities.



8. Keep in mind that the average millionaire is not who you think he is. The frugal rich stay richer if you do not believe this, think of all those high flying celebrities who end up with their homes in foreclosure or selling their-all on TV to pay for all that Cristal and all those houses. The famous IKEA owner drives a Volvo. HSBC's Chairperson famously goes around the main office turniing off all the lights long after the employees have left. The stories go on and on. The rich do not live the lifestyle of the rich they stay rich because they are frugal misers at heart.


9. Assess your income and what you can do with it. 80% of modern millionaires were able to get there on annual income of $55,000 or less. Even meager savings eventually add up to thousands or millions of dollars.


10. When you look at a job, always know how much the head honcho gets paid because this will later affect your income in terms of promotion, benefits and future potential earnings. If you are gunning for a six figure salary and the current CEO is getting by on $400,000 a year, then maybe the job is not for you.



11. Find alternative ways to generate income if you are unhappy about your current level of earnings or the amount of the salary you currently have. This can mean looking for other employment with better pay or benefits or finding ways to boost your income little by little. This can mean starting a cottage industry business, learning to invest, buying and selling online or any number of means to add to your nest egg.


12. Create forms of passive income, the type of income that you receive with little to no effort. Examples of this include : rent from property you own, licensing patents or dividends and returns from investment. Passive income can come from many sources. Exploiting the business possibilities of the internet through blogs or sales from eBay or Amazon is one way to add to your income with minimal effort. The truly wealthy prefer passive income anytime. It frees up time for you to do what you want, even while you earn.


13. Be. diverse. Create streams of income, do not rely on one large river, A job that pays $3M is great, but an accident or sudden layoff can cut you off. Think outside your salary. A job paying you $1M a year, plus real estate profits that amount to $1M and another $1M from stock is a far easier and safer thing to manage.



14. Learn to hold off gratification. A wealthy person knows how to delay gratification and sacrifice the now for later. This often comes with a positive attitude towards work and wealth, such as : " If I invest now, I will make 10% more late." The wealthy do not think of now, they think of the future. The present is merely an opportunity


15. Change your mentality about spending. Do you really have to have that now? The truly rich hold off gratification, knowing that what is trendy, popular or a must have today may not last until tomorrow.


16. Never be frightened of failure.



17 . Be realistic. Growth and wealth do not appear overnight, unless you are lucky enough to win the lottery or find long lost treasure. Invest need time to mature and savings need time to accumulate. Patience will be well rewarded. The wealthy know that scrimping now will lead to better results in the future.



18. Create a sense of urgency in your life. Do not wait for things to happen to you. You may think that you are playing safe by waiting around or looking for the next big deal. This is the financial equivalent sitting around. Take risks, invest, start the business now. Seize opportunities the moment they happen. The first to get there often wins, leaving the losers in the dust. Taking stock of what you have right now can have some advantageous surprises. For one, you may find out that you have more than you think. Second, it gives you a clear cut place to start and helps you find balance as well as set goals. After all, you cannot move forward without knowing where you come from.