Building massive wealth rarely happens unless you have a firm belief that you can do it.
Building massive wealth starts from the mindset that you can succeed in doing so; if you do not believe you can, you almost certainly won’t. Of course, simply believing you’ll be rich won’t make it so. But it’s nearly impossible to build massive wealth without believing you can. The great news is that an inner belief that you will build massive wealth is something anyone can cultivate.
Developing this identity (“I am wealthy”) might be extremely difficult for individuals who grew up with “scarcity” mindsets in literal poverty. But developing an “abundance” mindset that firmly believes you will succeed no matter what is a prerequisite for building massive wealth in nearly every case.
One of the main differences between rich and poor/middle class people is their perspective on wealth. The rich see massive wealth as inevitable. In their mind, success is assured. Most people don’t truly believe they’ll ever build massive wealth. With that attitude, they probably won’t.
Building massive wealth starts with your mindset. If you believe you can get rich, you’re far more likely to succeed than someone who doesn’t really believe it.
“No one is ready for a thing, until he believes he can acquire it. The state of mind must be BELIEF, not mere hope or wish.” -Napoleon Hill
Once you believe it, develop the necessary habits.
Good Financial Habits
Contribute towards your retirement. Make sure you have enough cash in your emergency fund. Insure your health, your income and your assets. The point I’m trying to make is that wealth is built through habits. Starting your life with those good financial habits will bleed over into your success in building wealth.
If you don’t know how to save, you can always end up broke no matter how much you earn. This is why you hear stories of lottery winners and pro athletes who managed to blow what seems to us more money than we could spend in ten lifetimes and in pretty short order too.
A big part of building wealth is determined by your habits. Let’s examine 2 of them
I know, this isn’t very exciting, but this is the definition of wealth. That is, don’t spend your money on things that don’t give you lasting benefits.
Great wealth builders focus on both saving money and earning more. They focus on the gap between their expenses and their income. Expenses should always be lower than your income. The larger that gap, the more wealth you can accumulate.
You can’t invest unless you have money to invest. If you’re currently living beyond your means and have no additional money to put to work for you, you’ll never build wealth.
Eliminate High-Interest Debt
High-interest debt can be defined as anything with an annual interest rate of 10% or higher. No investment can routinely beat the “return” you can get from paying down these debts. Credit cards particularly fall into this category and should be eliminated with utmost disdain and disgust.
How do you do this? We usually suggest that people follow what is called the “debt fireball” – make minimum payments on all of your debts, then throw the biggest possible extra payment you can at whatever debt has the highest interest rate. Soon, that one will be eliminated, and you can move on to the next debt down the list. Keep repeating this until you’ve closed all of your debts.
Debts with a high interest rate devour your money. You’re essentially handing money to creditors for virtually nothing in return except for the “benefit” of buying things a bit sooner than you could actually afford them.
Invest the Surplus in a low-cost, diversified, high-yield portfolio to ensure your wealth retains its purchasing power.
The sad reality is that the vast majority of people never build any serious wealth. Rather than getting wealthier over time, they just stay afloat decade after decade, moving through life spending as much as they make. At most, they build a modest nest egg, and rely on the government to support them in retirement.
Wealth creation is tough. It takes discipline. It’s like running a full marathon up a hill. There are no shortcuts. Wealth creation is tough, and it will happen at its own pace. If one is ready to be on board the wealth creation process with these limitations in mind, the journey will look rewarding.
“Success is neither magical nor mysterious. Success is the natural consequence of consistently applying the basic fundamentals.” -Jim Rohn