Change your mindset and grow rich

Apr 25, 2008

WEALTH is a state of mind. The poor are defined by their mentality, and so are the wealthy. To change your station in life, you need to change your mentality.

WALLET TALK

WEALTH is a state of mind. The poor are defined by their mentality, and so are the wealthy. To change your station in life, you need to change your mentality.

Think Assets, Not Cash

The poor are excited by having huge amounts in their cash accounts. The wealthy are ever shifting out of cash to purchase assets that will appreciate or earn them more money – which they can redeploy again, creating a virtuous cycle of wealth.
Think Investing, Not Saving
An extension of the above; the poor like to hoard cash, while the rich are more interested in investing – making money work for them.

Saving is useful in wealth creation but only in as far as it develops a habit of delayed gratification critical to wealth creation.

Think Net worth, Not Salary

When the wealthy come together, they do not discuss salary raises but the progress of their net worth – the difference between their assets and liabilities. The wealthy know that building appositive net worth and not salary increases will secure their financial freedom.

Think Compounding, Not Lottery

Compound is the eighth wonder of the world, said Albert Einstein.

Compound interest – earning interest on interest and time are the basis for enduring fortunes. For every lottery winner there a million losers, so ones chances of winning the lottery are next to none.

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