When it comes to building true wealth a strong money mindset is the key.
Yes, you need a strategy as well. The strategy is the plan and the plan is the map to get there. But your money mindset is the 95% most important key factor to your financial success. A strong money mindset is being able to lazer focus your mind on the plan, where you are going and what you truly want. Your mind is set on your goal.
Your mindset, and your wealth are intimately connected. And how you think has a direct impact on your life, your relationships and your health but it also has a major impact on your wealth.
How so?
First, it’s important to understand that we have two minds:
First, your conscious mind. This is where your everyday awareness is. Your decision making, your reasoning, judgments, your happy thoughts, frustrations. You have direct control over your conscious mind.
The second area is your sub-conscious mind. This is a data-bank for everything, which is not in your conscious mind. It stores your beliefs, your previous experiences, your memories, your skills. Everything that you have seen, done or thought is also there.
💡 Your sub-conscious mindset, beliefs and attitude are developed from an early age from your parents and or surroundings. This area is often not often recognised, but has the power to run your whole life without you ever having a awareness of it. It is those programs that are running your life, and can be running in the background ALL your life, without you ever knowing.
So, how does your Mindset affect your Wealth?
💡 Think of the language you use around the topic of money.
For example, “I Can’t Afford It.” How often do you think or say this to yourself?
What did your parents or grandparents say about money?
- Money doesn’t grow on trees.
- Money is a dirty word
- Work hard
- We can’t afford…
- Money is the root of all evil.
👉 This is where your subconscious beliefs around money were formed, and are now to varying degrees, influencing your unconscious actions, reactions and behaviour around money.
How your Sub-conscious & Super-conscious minds can work together
Your sub-conscious mind also works on two levels. The data-bank and the powerhouse. The powerhouse works to your advantage when you are clear and focused. In this state, your mind quietens, your sub-conscious becomes your super-conscious, powerfully supporting you in your clear vision. This is why a plan is the key to success. It disengages those old beliefs and memories to become your biggest supporter.
💪🏻 Planning helps focus the mind, engages the heart, mitigates risks and obstacles in order to move forward. The mind is now inspired and certain.
This inspired super-conscious area of the brain is called the executive centre, or your higher mind. When inspired and focused you are in a altered and certain state that you don’t question, you just know.
💡 Imagine your life, building your wealth, engaging in inspiring relationships from this state.
Change Your Thoughts (mindset), Change Your Life.
The simple act of having clear thoughts on your financial goals and focusing on your clear vision of what is most important to you, while systematically acting upon that plan and doing what it takes to make it happen, automatically changes your thoughts and your mindset. And in turn, brings about the certainty and the changes you want to see in your life.
💪🏻 Once a clear plan with a clear set of actions is done, it frees you to enjoy your life now knowing your dream, your goals and aspirations are set in motion. Your mind is still and you are present.
Q. What Savings Do You Currently Have?
The amount of savings you have has a direct effect on your mindset around money.
Do you have a significant amount of money sitting in your bank account just waiting to be spent on something that inspires you?
Or does your cash reserves balance oscillate up and down?
When was the last time you saw a significant amount of money sitting in your bank account for an extended period of time? This will give you an insight to your sub-conscious belief system around money when it comes to building wealth.
Two simple questions; What is financially absent in your life that is important to you?
And, for you to be able to afford something you really want, what would have to change?
Remember this statement below. Because without a clear plan and an automated savings system, it is unlikely that you will build significant wealth.
💡 ‘If you don’t know where you’re going, you may not like where you end up’.
So, what would you like the landscape of your life to feature?
Imagine coming to the end of your life, what would you like to have accomplished, done and been?
What do you want written on your headstone? Dedicated, fun loving, big life liver, colossal giver… what is it for you? The sooner you start working on your goals, dreams and deepest desires, the bigger the rewards! Not only in relation to your wealth, but also your soul and self fulfillment. We are all here for a bigger purpose and by automating and compounding your ability to build your wealth leaves you the time and freedom for doing what you really came here to do, to contribute, and to give.
HINT: If you can afford the small ‘stuff’, you can afford the things that are big and inspiring to you.
So by changing your thoughts, automating your ‘pay yourself first’ accounts to build your wealth, and getting clear on your highest values, dreams, goals and deepest desires becomes the path to your freedom. Both financial and emotional.
💰 HINT: Small mindful choices + consistency + time = significant results.
How is a strong financial mindset achieved?
1. Set and prioritize your financial goals, dreams and desires.
2. Document your top 3-5 tasks and take the actions necessary for the achievement of your goals/dreams/desires.
3. Action your plan with automated systems.
4. Observe your progress.
5. Time. (The secret ingredient)
💪🏻 The formula starts with a decision, moves to a series of small, smart financial choices, followed by small consistent automated actions, over a period of time.
If you need help getting clear on your strategy, call us on 08 7111 0022, book online here, or email info@fmgws.com.au.
Compounding to your advantage
The compound factor works in two ways.
Firstly, reinvesting. The process in which an asset’s earnings, from either capital gains or interest, are reinvested to generate additional earnings over time. The constant reinvestment of the capital gains produces a compounding effect so you earn gains on your gains.
Second, is time. You could invest and not reinvest and allow the law of compounding just work for you. (It would not be as much as reinvesting but it is still a substantial growth over 30-40 years.)
Your Money Mindset and Your Wealth cont
💡 Automating your savings.
You now know how your conscious and sub-conscious mind operates. It’s your money mindset that dictates your wealth. Part of our success formula incorporates the power of compounding, understanding your mind, developing a strong money mindset and automating your finances wherever you can.
I am sure you have tried to put money away yourself and eventually it got too hard, other expenses popped up and you got drawn away from your plan, your goals, dreams and desires.
WEALTH TIP: Remove your mind from the equation. Set up an account/ or accounts, and automate the transfer from your salary.
💪 Let me explain a simple strategy for building a strong money mindset that significantly and consistently builds your wealth over time.
Start an account that you can divert $5 per day into. By automating this process you are not emotionally attached to this money. We recommend it comes directly out of your salary before you see it, that way it is removed from your consciousness and becomes just part of your everyday life. Initially you notice the money going into your ‘wealth building account’ but over time your mind adapts and it becomes an unconscious wealth building occurrence.
Eventually, as you can see in the chart below, it is the single best $5 you can spend every day of your life! 💪
💰 How to get rich on $5 – $10 per day
Example (rounded) @ $5 @ $10
| Year 1 | $1,825 | $3,650 |
| Year 3 | $3,970 | $7,950 |
| Year 5 | $11,600 | $23,200 |
| Year 10 | $30,750 | $61,450 |
| Year 15 | $62,170 | $124,350 |
| Year 30 | $340,000 | $678,000 |
| Year 40 | $959,000 | $1,900,000 |
That is an example of how wealth is built with the miracle of The Compound Factor!
💰 This is such a great table to show your kids and grandchildren. The sooner they/we start the sooner they/we become financially free! 🥳
If building your wealth, getting clear on your financial strategy, and planning your best life with a strong money mindset is important to you book an online chat here, or email us here.
Arthur Panagis
Author, Founder, Wealth Coach and Financial Strategist
B.Bus (Accountant)
Grad Dip (Financial Planning)
Professional Certificate in Self Managed Super Funds
ASX Listed Equities Accreditation
Tax (financial) Advisor
We want you to make the rest of your life the best of your life.
Disclaimer: This article is information only. It is not intended to imply any recommendation about any financial product(s) or to constitute financial or tax advice. The information in the article is reliable at the time of distribution, but may not be complete or accurate in the future.
