3 Ways to Develop a Wealth Mindset

Preston Rosamond |

You can’t become wealthy by thinking, wishing, or dreaming about it. That may be a good start, but, ultimately, it begins with developing a certain belief system about yourself and money. This is what’s generally referred to as a “wealth mindset,” which you will see when reading about wealthy people. A wealth mindset emphasizes the creation and preservation of wealth, rather than only focusing on earning and spending money in the present. 

If you have big financial goals and want to be wealthy, the first step is to cultivate the right mindset around money. Here are some wealth mindset strategies to get you started. 

Consider Your Spending Habits

If you start making more money, accumulating more money in savings, or both, beware of lifestyle inflation. This is a common phenomenon where a person’s spending habits go up with their wealth. 

However, truly wealthy people don’t just spend money indiscriminately. When you develop a wealth mindset, you think about both the short-term and long-term impacts of your spending.

Here’s an example. Let’s say you’ve just landed a new job making a lot more than you used to. You have a reliable car already, but you’re considering buying a motorcycle to enjoy on the weekends.

Before the purchase, you consider the sale price of the motorcycle. But to truly develop a wealth mindset, you need to look at the various long-term costs associated with the purchase as well:

  • Motorcycle gear
  • Gas
  • Insurance
  • Taxes
  • Maintenance and repairs

Every purchase comes with an opportunity cost. After all, you could have spent the money on something else.

This doesn’t mean you should never purchase anything beyond the barest essentials—it means you should look carefully at the financial impact of each purchase. Does the enjoyment you’ll get out of the purchase ultimately matter more than the money you’ll lose?

Create a Comprehensive Financial Plan

This might sound like an obvious suggestion. But when building wealth, few people focus purely on earning more money. Earning more is a good thing, but truly wealthy people don’t just earn more—they also work hard to manage and grow the money they have. One of the smartest ways to do this is to invest carefully.

When you develop a wealth mindset, you shift your financial focus from the short term to the long term. To that end, we recommend choosing wise investments; even small investments count, as they build over time with compound interest.

Unless you already have a strong working knowledge of the investment landscape, you might be unsure of where to begin. Learning about investing on your own may be useful, but an experienced financial advisor can also help you make sense of your options and choose the best strategy for meeting your goals.

Let Go of the Poor Mindset

If you want to develop a wealth mindset, first make sure you aren’t holding on to a poor mindset. Plenty of people have this kind of damaging outlook without even knowing it. If you have any of the following beliefs, you might have a poor mindset:

  • Wealth is reserved for a select few people.
  • I’ll never get out of debt or reach my financial goals.
  • There are no opportunities for change.
  • Pursuing wealth is inherently immoral.

These beliefs can be insidious and hard to let go of. But the first step to letting them go is to identify them. When these types of thoughts pop up, counter them with your wealth mindset. For example, if you start thinking you’ll never be out of debt, remind yourself you have a financial plan that helps you move toward your goals.

Cultivate a Wealth Mindset

Unless you are one of the lucky few lottery winners, it’s not likely you will become wealthy by accident. Becoming wealthy is a noble goal requiring a lot of hard work and consistency. Without a plan, it can be hard to know where to begin. Having a financial advisor on your team can greatly contribute to helping you meet your desired financial goals

At The Rosamond Financial Group, we can help you set clear financial goals and cultivate your wealth mindset strategies. But that’s not all we do—we also help you put your financial plan into action, monitor your progress, and adjust as needed. Ready to take the first step? Book a free introductory meeting online! You can also see what clients are saying about working with us.

About Preston

Preston Rosamond is a financial advisor and the founder of The Rosamond Financial Group Wealth Management, LLC with over two decades of industry experience. He provides comprehensive wealth management and financial services to successful business owners, corporate executives, and affluent retirees who enjoy simplicity and seek a professional to help them pursue their goals. Preston personally serves his clients with an individual touch, a sincere heart, and his servant’s attitude is evident from the moment you meet him. Learn more about Preston or start the conversation about your finances with him by emailing solutions@rosamondfinancialgroup.com or schedule a call on his online calendar.