Change Your Money Mindset
The single most important thing that has enabled me to get to the financial position I am in today is a change in my money mindset.
Having the wrong money mindset can be a huge obstacle in achieving financial freedom. A majority of individuals believe that the most crucial steps to getting rid of debts or to financial freedom are to cut down on expenses and/or to devise an excellent budget plan. Making proper investment plans and saving are considered to be the next most important steps towards successful financial results. But, without essentially changing your mindset, it will be extremely hard to attain or maintain these approaches
What you need to understand is that one of the most crucial responsibilities you have to your loved ones as well as yourself is to ensure that you achieve your own financial freedom during your working age to ensure that you can enjoy a well-earned retirement with peace of mind. If you want to achieve financial freedom before your retirement age, it is essential that you start changing your thinking in various ways. Here’s how to go about it. . . . . . . .
Financial Freedom by Planning
The first mindset shift should be from financial freedom by accident or luck to financial freedom by planning. Financial freedom should be the centrepiece of whatever you do. Achieving this freedom shouldn’t be something that happens in a haphazard or random way. It should be something that you consciously think about, define, and continuously plan for. It should be part of your entire world view.
Just as you might think about your dream house today, you must also think and plan for your financial future. You need to think on a long-term basis, several years down the line and outline an absolutely clear plan on how you’re going to achieve particular financial goals on a timeline, year after year until you arrive at a point where you’ll never need to work again unless you want to.
Adopt a Millionaire’s Mind-Set
Another change in thinking should be from a security mindset to an opportunity mindset. Undoubtedly, many millionaires didn’t get to where they are by playing it safe. They became financially independent by leading the field. Be willing to get out of your comfort zone and turn your financial resources to a continuous investment cycle in a new and unique way. If you have a good idea, capitalise on it.
To turn your way of thinking to a millionaire’s mindset, start by considering different options and developing ideas on how to make your money grow. Expand on the mindset of securing what you already have to invest with an aim of increasing your finances. Don’t be intimidated when learning new ways; no matter how unfamiliar they are, if they can assist you to increase continuous accumulation of wealth. The more things you learn, the easier you can consider and carefully evaluate new money making ideas.
Change Your Mind-Set From Spending to Saving
To achieve financial freedom, you must shift your mindset from spending to saving. A recent study reported that the majority of average young couples in the world spend 110 percent of their earnings, making up the difference with loans and credit from their families. With this approach and attitude to life, especially when it develops to a habit, the potential to save and acquire/ accumulate wealth declines massively.
In research paper after research paper on financial freedom, all experts generally agree that you should save about 20 to 30 percent of your earnings if you want to arrive finally at a point where you’ll have enough money to guarantee financial independence before retirement age. The wonderful reality is that, once you start putting more and more of your income into savings, and living on the remainder, you’ll be surprised to notice that you don’t experience any discomfort. You continuously adapt and become even more comfortable with living on a lesser amount, building money management techniques into your life that become a very positive habit and that also gives you a great sense of accomplishment and well-being.
Your Financial Freedom is Your Responsibility
A majority of people do think that they must entirely delegate the role of managing their investments to financial experts such as fund managers or financial advisors in order to become successful. If you want to achieve lifetime financial independence, you must shift from this mindset and take the responsibility on yourself. It’s advisable to consult financial experts, but you must also invest your time in enhancing and developing your personal finance expertise.
Shift From the Belief That Debt is an Essential Part of Life
A majority of people, including the high-income earners, blindly accept that you must have a debt to get along with life in the modern world. That is actually one of the most common reasons why there are so many people living pay check to pay check, even on a high income. A debt-free lifestyle is one of the most effective ways to use your money economically. Getting rid of debts sets you up for financial independence by protecting you from paying out thousands of extra pounds each year in interest.
You can change your mindset on loans by accepting the reality that a loan is a form of bondage. The more loans you have, the less free you are to live your best life.
Change Your Thinking From Hoping, Wishing and Talking to Acting
Financial success demands that you change your thinking from hoping, wishing and talking to thinking and acting. Don’t talk much about your activities and your plans – simply start accumulating money confidentially and quietly. Avoid engaging yourself in conversations about your financial accumulation account. There’s a secret about keeping your processes and plans confidential; you get more strength to make them work even more effectively from your continued success. You’ll notice that successful people will rarely talk to others about their wealth. They are extremely private. Rich people have realized over time that the more secretive and confidential they are, the more efficient they seem to be in accumulating enormous amounts of wealth.
The Power of Positive Thinking and the Law of Attraction
Have you been thinking negatively about various opportunities? This is a mindset you need to get rid of as soon as possible in order to achieve financial freedom. The basic principle of the law of attraction is that positive thinking invites good things into your life making you achieve life-changing results that improve your happiness, wealth and health. Positive thoughts are believed to attract positivity into your life; wealthy thoughts attract wealth and prosperity. Conversely, negative and thoughts of failure will attract negativity and failure into your life.
Here’s the bottom line; without the right mindset, it’s extremely hard if not impossible to achieve sustainable financial freedom. But once you change your mindset, you’ll probably be surprised to see how you easily win your race to financial independence.[thrive_leads id=’1426′]