At REAP Financial, our team of fiduciary advisers has the great pleasure of working with some of the most successful retirees and investors in the country. As we’ve reflected on our years working with these retirees, one of our most prominent takeaways is that building wealth and achieving success is about mindset and leveraging the power of time. In this article, we’ll cover the surprising power of mindset when it comes to building your wealth and your legacy. Of course, it takes hard work, discipline, and determination to achieve these goals, but a big part of success in building wealth is psychological. Be sure to read to the end of this article, since many people don’t realize how much mindset can impact your financial success.
Contents
Abundance vs. Scarcity: The Two Mindsets
When it comes to financial mindset, there are two trains of thought: abundance thinking and scarcity thinking. Abundance thinking is dreaming big, of all the things that could be, even when you have limited resources. Scarcity thinking involves the belief that there will never be enough; it is more based in the present and not forward-thinking. Most investors have a long-term growth mindset, understanding that getting rich overnight is not the path to wealth for most people. Unless you win the lottery, it will take years of determination, paying yourself first, and delayed gratification to build wealth. Delayed gratification is part of the abundance mindset, as it focuses on understanding that, although resources may be limited today, consistent discipline can help us achieve our goals over time.
The Trap of the High-Earning Poor
However, as you start tasting success along the way, you can fall into the trap of the high-earning poor. The “high-earning poor” describes people whose income grows, but their expenses and lifestyle grow alongside it, so they make less progress over time. This is where delayed gratification comes in, helping people resist the temptation to inflate their lifestyle as their income grows. This takes a lot of discipline, but it is understanding that you may not need to get a bigger house, upgrade your car, or get that new watch, just because you can afford it. When you practice delayed gratification like this, you’re putting money into your future and paying yourself first. We often recommend saving as much as possible to set yourself up for success in the future.
Cultivating a Positive Relationship with Money
Years ago, Chris Heerlein from REAP Financial wrote a book called Money Won’t Buy Happiness… But Time to Find It. The book is all about leveraging the power of time. It is the greatest asset you have, but oftentimes we don’t take advantage of it or we wait too long to leverage it. Many of you reading this, in your forties or below, have decades to plan for your future, and it should start with an abundance mindset.
When it comes to money and marriage, money tends to be one of the most contentious points in a marriage. Sometimes couples don’t even want to talk about money, since they have negative experiences with it. Though many people have negative associations with money and discussing it, you need to approach money in a positive way. It is possible to have a positive relationship with money, despite the fact that it can be daunting or difficult to discuss. Having a positive relationship with money reinforces the abundance mindset. By paying yourself first, you can build wealth over time, so you can give to causes you believe in, support loved ones, and establish your legacy. To achieve these things, you must strive to approach money positively and with discipline.
Importance of Goal Setting to Drive Success
Finally, setting clear and defined goals over time drives your success. Building wealth does not happen by accident, so you need to be intentional. You should set goals that can be obtained through your work, time, and discipline. You can build a 3-, 5-, or even 20-year plan, but you want to update that plan as time goes on and track your progress. Check in over time and see if you hit your goals according to your plan. Doing so will also give you motivation to keep progressing, as you reach different goals and milestones.
If you want to learn more about this abundance mindset and how to leverage your time, get your free copy of Chris Heerlein’s book, Money Won’t Buy Happiness… But Time to Find It. In that book, he dives into how to leverage the power of time so that you can optimize your journey along the way. Request your free copy by emailing retire@reapfinancial.com! And, if you want more resources, check out this video on how to live your best life in retirement!
Financial Planning in Austin, Texas
Are you ready to take control of your financial future and build a lasting legacy? At REAP Financial, we specialize in helping clients develop a wealth-building strategy based on a strong, positive mindset. Our team of experienced fiduciary advisers offers personalized financial plans designed to help you achieve your long-term goals, whether it’s through saving, investing, or planning for retirement.
Located in Austin, Texas, we are committed to helping high-net-worth individuals and families create, preserve, and grow their wealth. Contact us today for a complimentary consultation and learn how our personalized approach to financial planning can help you build a secure financial future with confidence.
