How would you define “wealth?” I often hear the following:
- When I can do what I want, when I want, without money worries
- Knowing I have enough money for both what I need and what I want
- When I can focus on what brings me joy and happiness instead of work
For some, wealth is something only others have. For others, money can actually have negative connotations. I like to challenge my clients to imagine wealth as something they can possess the power to define and enjoy. Retirement is a great example of planning wealth right; it allows us to stop working and enjoy life without concern for financial well being.
Don’t mistake building wealth with merely earning a big salary. In fact, I know school janitors with greater net worth than executives making six-figure incomes. Spending less than you earn, no matter how much that is, is the primary principle of wealth building. Consider making space in your life for these three additional habits:
- Cultivate a Wealth Mindset – Is money your friend? Thinking of money from a positive standpoint has almost become a social faux pas. But understanding the difference between idolizing money and valuing what it can allow you to accomplish is the key. Explore the ways money allows you to live more intentionally. Whether it’s donating to causes you’re passionate about, or merely living comfortably without debt, understanding how you and money can work together helps you to view it as a friend. For me, journaling, teaching and being a part of a mastermind group helps me stay grounded in my wealth mindset.
- Practice Money Mindfulness – Knowing your financial indicators, like monthly income, expenses and savings, total assets, liabilities and net worth, will keep you on track. I once had a client who drew a picture of a flower and colored in a petal for every $100 saved. She enjoyed watching her flower come to life as her savings grew. Find a way that works for you and practice it!
- Share the Journey – Building wealth is always easier when you have support from your partner, friends, professionals and community. We tend to share some of the same mindset as those we surround ourselves with. Surrounding yourself with financial professionals like bankers, accountants and advisors, provides encouragement from other wealth-minded individuals.
If you’re just starting to explore how to build wealthy habits, or even if you’ve mastered them, I wish you well in your journey to finding the financial ground to live the life of your dreams!