I had previously written a post about being poor. A few years of working in finance, saving money, and building multiple side businesses, I hope to hit the $1 million net worth goal by the age of 30. This isn’t necessarily rich, but I should have a higher net worth than most of my peers. Over the journey, I learned that being rich isn’t 100% about money. It is about well-being, abundance, success, and the right mindset.
There are definitely social issues that contribute to poverty; however, the mindset can also drive wealth creation and success. A simple shift in your mindset can point you in the right direction to becoming wealthy.
The abundance mindset uses any surplus income to generate more income. If you have an extra $5,000 saved, it should be invested in the stock market, income-generating property, a business, or yourself.
The poverty mindset sees excess income as an opportunity for consumption and lifestyle inflation.
2. Long-Term Investments
People who have an abundance mindset seek to spend their time on work that continues to pay off after the effort has been invested. Think long-term investments. We are about assets that continue to create value on their own.
The poverty mindset is about short-term returns. We call it hours-for-dollars. They think that resources invested without immediate returns are resources wasted.
3. Risk and Reward
The abundance mindset is willing to invest resources with no reward right away. Not everything is profitability right away. Somethings take years to generate income.
The poverty mindset thinks only about the short-term gains.
The abundance mindset looks to build relationships based on trust, shared values, and mutual respect. We help others and cultivate relationships with no expectation of anything in return.
The poverty mindset is quid-pro-quo. I scratch your back, you scratch mine.
The abundance mindset understands that reputation is everything. Trust and respect are earned slowly, and through effort. Both of these can be lost in an instant.
The poverty mindset compromises its reputation to make a quick dollar.
6. The World
The abundance mindset knows that the world is not fair. It owes us nothing, and the universe is indifferent to our existence. All successes are improbable, and you need to do what you must to create your own successes in this world.
The poverty mindset is consumed by the unfairness of the world and complains about it. They feel the world owes them something.
7. Celebrating Others
The abundance mindset celebrates the successes of others. We embrace competition and befriend it. We are inspired by the example of others. Success is NOT a zero-sum game.
The poverty mindset is jealous and bitter about the successes of others. It looks at others’ successes as a zero-sum game.
8. The Mentor Mindset
The abundance mindset believes that something can be learned from everyone.
People who live in the poverty mindset believe they know everything. Differing perspectives are also wrong before even hearing them.
9. Doing It All
The abundance mindset understands that it cannot do everything and delegation is the best way to maximize value. We focus on our core strengths and reinforce our weaknesses with the strengths of our colleagues. The right team is greater than the sum of its parts.
The poverty mindset deludes itself into thinking that it can do everything on its own.
10. Knowing When to Quit
The abundance mindset quits strategically. We quit when we realize our goals are either unreachable or aren’t worth the pain of the involved work.
The poverty mindset quits in reaction to short-term discomfort.
11. Attrition and Fortitude
The abundance mindset sticks it out when the going gets tough. We understand fortitude and that rewards are reaped by those who push through difficulties.
The poverty mindset sticks things out due to stubbornness. They place too much importance on sunk costs.
12. There is No Such Thing as Done
The abundance mindset understands that there is no 100% done. Life is defined by what you learn, the new challenges you face, and human capital you build.
The poverty mindset believes in retiring, kicking back on the beach, and doing nothing. They fall victim to hedonism and the vices it brings.