Your viewpoints shape most things in life. How you tend to view things will determine, in some way, the outcome of certain events. When it comes to personal wealth management, your mentality and thoughts are important to consider. This will help you formulate the best plan of attack to becoming your own banker. When it comes to finances, people will generally fall into two schools of thought: a scarcity thinker or a prosperity thinker.
Simply stated, are you a glass half empty or half full type of person?
Someone who is a scarcity thinker when it comes to their private wealth management may be in the constant fear that their next paycheck or business deal could be their last. They will want to save their money and not touch it, “Just in case.” While it is important to try and save your money, by not utilizing what you earn to grow and develop your wealth, you risk stagnation.
Having a Prosperous Mindset When it Comes to Your Finances
Having a scarcity mindset keeps you stuck at your current location. A prosperous mindset opens the opportunity for you to become financially independent and on your way to becoming your own banker. When it comes to investment, timing and risks play an important role in your decisions, but your mentality is the key to success and failure. It is important to place your money into a vehicle of your choice, one that fulfills your requirements and is proven to be right for you. This will provide value to your needs and an overall wealth rather than just simply a short or long term investment.
Once you have the right mentality and the knowledge to drive your personal wealth in the right direction, the second part is to work on never losing that money.