In this guide, I’ll teach you the fundamentals of building a pro wealth mindset that makes money.
To make more money, you need to first become financially empowered and give yourself permission to get rich.
The right mindset is everything: it lets you attract money even as you sleep. Read to find out how to build this pro wealth mindset.
First, you’ll learn how to elevate your mindset to the ultra-wealthy.
Next, you’ll learn what makes this upward transition is possible.
Finally, I will share what it takes in today’s world to make money at the top and stay wealthy for generations to come.
- Be Empowered to Make Money
- The Ability vs. Action of Making Money
- The Four Fundamentals of Wealth
- The Sum of Five Rule to More Money
- Let Your Assets Make Money
- Make More Money via Professional Recreation
- The Long Haul to Make Money
- Use Law of Attraction to Stay Upwardly Mobile
- Conclusion to the Money Mindset
- What’s Next?
Be Empowered to Make Money
The term “financial empowerment” or “feeling empowered about money” have many aspects.
It means being self-sufficient with money such that you don’t keep wanting for more. It means being financially fulfilled by what you have today.
A person who is financially empowered isn’t a slave to money, and as a result, she can attract more because she is free.
Of course, there is. a social aspect to this, it’s not just about the individual. How do you financially empower your kids, the sick, a retiree without much savings, or women stuck at home?
We talk about self-reliance. But self-reliance is difficult when the person is stuck deep in a deep hole with no realistic way to get out.
It is a truly great feeling to not have to depend on anyone else for your financial requirements. But sometimes you gotta stop digging your own grave and get humble and ask for help.
Not everyone has enough humility to ask for help and not everyone knows where to get help.
This is particularly important for women because historically, women have not been financially empowered: for both cultural and legal reasons. I talk about this in-depth in my guide Financial Independence For Women: What I Wish I Knew.
While the solutions in this guide might seem simple, the concepts, once understood and implemented, are powerful.
How do you get financially empowered, or ask for help to get there? Let’s dig into “how” right now.
The Ability vs. Action of Making Money
There is a wide gulf between ability and action in the world that we live in.
Being able to make money is one thing. That creates potential in you. But it doesn’t empower you. The empowerment comes through putting your ability into action.
There are millions of people out there who are capable of doing something. They might even have the right academic qualifications and some might even have an experience.
But then these people aren’t putting their talents to the right use.
A desk job can only take the person so far because he or she doesn’t really like doing that stuff.
However, if this person had taken the bigger step of going ahead and overcoming any limitations in the way, such as stage fright – it is highly possible that he or she would be much better financially stable and empowered today.
We all have various talents, but we fail to discover them and even if we do, we fail to put them to use.
Why? Because most of us aren’t willing to work a day job to pay then bills and then practice our craft at night.
J. K. Rowling would not have become the multimillionaire if she had given up her writing and chased a “safe” job.
Imagine Michael Schumacher or Zinedine Zidane’s vast bundle of talent hidden behind an office job.
Imagine Oprah running away from the crazy idea of owning her own production studio.
Or think what Barack Obama would have been if he did not act to implement his immense leadership potential and charisma to rule one of the most developed nations of the world.
When you see the glorious successes of these people, you don’t see the hard work these people have put into their dreams, the sacrifices they are willing to make and the failures and fears they have to overcome.
Successful people take massive actions against all odds.
It is not just enough to be able. We need to act.
If you want to be financially empowered, you have to use your abilities that are within you and wow the people around you.
Take that step and do something embarrassing. Go into the arena and fight with everyone watching. Don’t be a spectator criticizing on the sidelines.
The Four Fundamentals of Wealth
When you think about building wealth through financial empowerment, there are four elements for you to act on.
Assets are the material and nonmaterial things that you have with you.
These things are valuable because you use them to create more things.
However, we are going to bring about a change in your perspective of assets. Normally people think only about monetary assets.
But everything that you have, including the love of your spouse, can become an asset!
Accumulate your assets in life, both the tangibles and the intangibles. The more assets you have, the more empowered you will become.
Your career success depends on how educated you are.
However, I don’t mean academic qualifications. Quite the opposite: taking out loans to get a useless degree is not the best way to learn.
Everything that you do in the pursuit of achieving something counts toward learning.
Learning for very motivated people is a daily fact of life. It means taking risks and learning from failures and successes. It means to be open-minded to new opportunities, thoughts, and people.
Even reading a manual to understand how a particular software application operates counts as learning.
Reading a book is learning, and so is taking a free course online.
Most importantly, attempting to build a business is the best way to learn your way toward financial empowerment. You’ll be humbled by what you don’t know, and by how much hard work there is.
Invest in Index Funds
Investment, particularly investing in index funds, is a very special type of asset because this is one of the easiest ways to build net worth for generations to come.
But people tend to do investing in the wrong way. They day trade, which is the same as gambling and means will lose money.
And worse still, people tend to high and sell low – the exact opposite of what you’re supposed to do. This is human nature: people are overly confident and think growth will never stop. And then people panic and think a recession will never end.
To save for the long run, just put your money in a Vanguard Fund that has broad exposure and low fees. And then forget about it. If you. come back to your money in a few decades, I guarantee you it’ll be higher.
I wrote this guide to tell you exactly where you should invest: Best Vanguard Funds for Every Stage of Your Life.
You need to enrich your mind in order to stay healthier and live a fulfilled life. How do you do that? You play!
Studies after studies have shown how important it is for adults to indulge in play and be playful with each other – it literally makes our brains smarter, decreases our stress, and allows us to form close bonds.
Play makes life worth living. And really, play can be everywhere. Play is also about spreading kindness and practicing optimism.
ANd play varies from person to person: you might like to play games, someone else likes to play through outdoor activities.
I personally like to play by reading a good book while sipping hot coffee with my cats purring next to me.
You might play through the arts, with specific people, or via music.
Play actually also directly improve your economic standing. Most startups are formed by buddies who started out playing with each other. And you never know who you’re going to meet that might help you out when you go out there playing.
So no matter how stressful, difficult, and busy your life is, make sure you think about what makes you tick and take the time to play!
The Sum of Five Rule to More Money
The Sum of Five is a personal law that helps me evolve. It’s also a key aspect of how I make more money.
It ensures that you don‟t remain stuck in the rut when you have achieved some success. So, what does the Sum of Five state?
The Sum of Five states that your income is the sum total of the five people closest to you. If the five most prominent people you are dealing with financially make significantly less money than you do, then it is time for you to widen your friendship circle.
The exact number is irrelevant. “Five” is just an example. It means if you want to be motivated, you gotta surround yourself with motivated people.
You might think this law is a bit selfish – am I suppose to get rid of my friends just because they’re not rich? What if they’re good people?
Actually, this law isn’t telling you to abandon your old friends. It simply asks you to expand your circles.
When we stay in the same situation we’ve always been in, we don’t think about taking massive actions because we don’t think it’s possible. We are blinded by the circumstances that surrounded us where everyone else also is blind.
If we want to progress, we have to change. It doesn’t mean we abandon completely. It just means we widen our circle a little at a time.
There is a saying in an Indian language that says, “A man doesn’t really succeed in life unless he leaves his childhood behind.” It means we should not cling to our past more than we should.
So do the following:
- Make it a habit to meet new people who are doing interesting things regardless of their domain.
- Make it a habit to seek out and get advice from smart people who you want to become one day.
- Help those in need and give whenever you can. You never know how far your kindness can go.
What Assets Should You Accumulate?
Assets are what you accumulate for yourself in order to start empowering yourself financially and make money.
These assets include monetary as well as monetary resources.
Most people only consider monetary assets when they speak about assets. They consider things like their bank balance, their property, their cars, their stocks, etc. as assets.
However, there is much more to assets than just these materialistic things. Here we take a look at assets other than the usual material ones.
Your good name in the market is a very important asset.
It could be your name, your company name, or your brand.
Whatever goodwill your name has accumulated, you could certainly use it to make money.
For instance, if you launch a new product with the same name as your previous successful product, it already gets a lot of foundation to succeed.
That’s the reason big-name companies sell their goodwill when they give out franchises.
Authenticity is a huge asset these days, so be truthful and honest.
Liars will eventually be found out and it’ll destroy your reputation, so don’t bother to lie to get short-term gains, it’ll cost you.
Everything that you do in your life is an asset in itself.
These are things you can tap on in order to empower yourself in a better manner.
For example, if you are a postgraduate, you could use that experience in education to pitch in for financing a research grant.
If you have worked in a particular area, your chances of earning in that area are more due to your prior experience.
There is no shortcut in accumulating assets. When you see the glamour of success, you rarely see the sweat, tears, and failures.
The experiences are the journey, the dues you have to pay to gain access.
Because hard work is the only way.
Everyone that you come in contact with is a potential asset for you.
You are what your family makes you, and that decides your capabilities to a large extent.
Also, your friends make you and so do other people that you come in contact with.
Nobody can do it alone, you need a network of supporters, coworkers. And yet relationships take time to build and can be easily destroyed.
Relationship an asset that you should take time to invest and recognize that you may not get an immediate reward. But with enough time and savviness, relationships can take you to places you can’t get to yourself.
Let Your Assets Make Money
Being financially empowered means having enough money so that you don’t ever need to worry about money.
To build your assets and get them to make money, you have to start thinking about plotting your actions for long term success.
Here’s how you can start building your asses into real wealth.
Investing via low-fee index funds is the best route to building assets.
Find ways to invest every week and make it automatic. You can invest in either mutual funds or ETFs with low fees and broad coverage.
The channel you select for investment should be safe and should have a track record of high returns, like Vanguard: click to read my guide on the best vanguard funds to invest.
Sniffing Out Opportunities
Opportunities are all around us, but we don’t know how to get at them.
Keep your eyes wide open. If there is a business venture that interests you, learn more about it and take action.
But watch out for scams. All quick, get-rich schemes are scams. MLM is a scam. It’s outlawed in many countries (except the United States, go figure.) Trading stocks is gambling. Selling your soul to make money that hurts other people is also a scam.
To build a legitimate business that accumulates massive wealth takes a lot of sweat, pain, and hard work. You might need to do it on the side first before you can go full-time.
And that’s okay, start doing some side hustles and gain the experience and relationships you need before you take that next step.
Talk About Money
Most of us shut out our near and dear ones when it comes to asset building.
But I think your partner needs to be on board with your financial plan to get rich and make money. And maybe you need to involve your other family members too.
Perhaps you have parents who need help to achieve their retirement goals? You need to teach them how to invest so they can take care of themselves and have time to help you.
Perhaps you have a partner who has different financial goals? Make sure you guys are aligned first.
Talk to your friends about money and see if their relationship with it is healthy and ambitious.
The more you talk about your goals with people you trust, the better you’ll be able to understand where you want to go, and who you want. to work more to achieve your goals.
Make More Money via Professional Recreation
How does recreation help in building your financial value?
The common mentality of most people is that when they are getting some recreation for themselves, they are actually wasting time.
They think that by giving themselves some amusement, they are actually depriving themselves of the opportunity of being able to earn something.
But worse things can happen if you deprive yourself of proper routes of recreation.
To recreate means to free up your mind and utilize it in doing something that you really like to do. It means to unwind yourself from your daily rigmarole of work.
Since our mind is not a machine, but a living organ with blood and tissues in it, it needs unwinding.
But there is a subtle point. Every person chooses his or her form of recreation and this can be connected with what they do professionally.
For example, for a person who teaches, reading could be a form of recreation. Reading can expand his knowledge of teaching.
For a professional sportsperson, looking at someone else’s game could be recreation. She can pick up various tips from that and learn.
Remember that empowering yourself financially does not mean immersing yourself in money-related thoughts and keeping yourself there all the time.
Sometimes, you have to come out of those shackles and think in a liberated manner. This helps you rethink things and you begin looking at the world with a renewed perspective.
The Long Haul to Make Money
It may not sound pleasant to a lot of us, but when most of us think of the term “financial empowerment‟, they tend to think about short-term goals.
One of the biggest mistakes that we do is we tend to contract our entire lifespan into a few weeks. We want an easy, quick way to make money.
We forget that we have a long life ahead of us and that if you want to be really financially empowered, we have to make sure that we have enough for that period which looms ahead of us.
That is why, when we speak about financial empowerment, it is not going to be much about what you can do that can give you returns today but what you can do so that you stay financially empowered for the next 10 years.
I think about my life in 5-year increments, and ask myself, what is my vision for my life in 5 years, and what I can do today to plant the seeds to get there one day.
Use Law of Attraction to Stay Upwardly Mobile
How do we ensure that we keep empowering ourselves financially?
You must remain always moving toward the top.
When you mix around with people who have a particular kind of status, it automatically begins rubbing on you.
Consciously or subconsciously, you begin taking steps to be with them, and sooner than you think, you are there. You get that one important breakthrough and you get to be with these people.
Think positive. Think big. When you do that, you usually do big.
If you confine yourself to thinking narrow-mindedly, you are going to stay there. A lot of modern philosophers have laid great emphasis on the importance of thought – Stephen Covey, Rhonda Byrne, Paulo Coelho – and you have to understand that there is great truth in this.
When you think positively about something, things automatically energize themselves to make that happen.
You know this fact in another form already probably – the Law of Attraction.
Yes, this law can help you greatly in financially empowering yourself. So use the law of attraction to expand your circles of friends today.
Conclusion to the Money Mindset
Make more money through financial empowerment is quite attainable, even if you started with nothing.
The fact is that most people don’t think it can happen to them and hence they stay in the rut.
One of the most important things to remember is that you have to have faith in yourself, and take massive actions that take you outside of. your current situation.
But before you begin, first believe that you can make this transition. Believe that you can take that leap. And then take the steps to achieve it.
Looking for index funds to invest your money? Read Best Vanguard Funds for Every Stage of Your Life.
Scared for your stock investments and wondering when you should pull out? Read Will the Stock Market Crash? Complete Analysis
Retiring soon? Learn about the go-to fund I recommend to my parents: Vanguard Wellington Fund (VWELX)