By: Dr. Dominique Reese
Wealth beyond money was the focus of last week’s article. This week, I will focus on the financial capital that contributes to your wealth. While I know that everyone doesn’t want to be wealthy, I do know that everyone doesn’t have what it takes to be wealthy (even if they wanted to be). When approached from this perspective, wealth building can be as simple as checking off items on a list, but as difficult as changing your entire lifestyle. Regardless to if you want wealth or not, do you even have what it takes? I have learned after working with hundreds of people that there are things in our control that certainly contribute to whether or not we will be wealthy. When you position yourself to control these factors, you position yourself for wealth, plain and simple.
I believe your financial capital is made up of your money mindset, your financial behaviors and your sources of income. Let’s explore.
As I have shared before, you can have two types of mindsets, a limiting one and a motivating one. Limiting mindsets are one’s like, “ I can’t save, I don’t make enough money,” “I max out credit cards and pay what I can, that’s what they’re for,” “Investing is too risky, I don’t want to lose my money,” and “I haven’t checked my credit because I know its bad.” While motivating mindsets are “Saving something is better than nothing,” “If I use my credit card, I’ll make every effort to pay it off in full or Ill consider not using it,” “Investing is risky, but I will learn as much as I can, so I can become an investor,” and “Even if my credit sucks, I will do what I need to do to improve it.” What mindsets about your money situation do you have? Do you even think that wealth is for you? Do you think it is within your reach? Whether you answer yes or no to that question, I want you to affirm your wealth everyday this week, with this statement: “I am destined for wealth. It is for me. Today, I will do at least one thing towards building my wealth.”
Your financial behaviors are closely related to your mindset about money and wealth. If you tend to have limiting mindsets, you may also be more likely not to take actions that promote good financial habits, like, not saving, taking trips you can’t afford to take, eating out way too often, neglecting necessary expenses. However, if you tend to have motivating mindsets, you are more likely to take actions that promote healthy financial habits like saving for big purchase items or trips, monitoring your spending, and paying your bills on time. Let’s take a look at your behavior for the past few weeks: have you transferred any money to your savings account in the past 1-2 weeks? Have you paid any bills on time or setup an automatic payment? Have you read or listened to a money-related piece of news? What is your past behavior telling you about your current money situation? Would you say you are practicing good financial habits and taking actions that lead to the outcomes you desire? You don’t have to perfect this. You just have to do one thing everyday or every week that leads you in the direction you want to go with your money. In the next 7 days, I want you to do something you have been saying you would do, regarding your money. Doesnt matter what you said you would do, I just want you to do it. If you can, take out your calendar, look for the day and time that you can commit to completing a financial related task, and then just do it.
Sources of Income
If you know me, you know I am an advocate of entrepreneurship. I strongly believe it is one way to build wealth. However, everyone may not want to be an entrepreneur. So what does that mean for one’s wealth. I have discovered that adding or modifying your sources of income can help position you for wealth. Let’s say you’re a professional. Are you earning what you’re worth? If not, you should be preparing a presentation to your management team to support a higher salary or bonus. If you’re interested in entrepreneurship but are hesitant and you have a 9-5, you should be crafting your business plan (which can be as short as one page) to get the gears turning on how you can take your idea to the next level. Maybe you simply want to invest money to make money. There are always bonds that pay interest and stocks that pay dividends. These are sources of income believe it or not. Of course you do your research and approach them with a professional for best results, until you’re comfortable to do it alone. You may choose to invest in a business, like a network marketing or affinity marketing business. There are thousands of them and they do work. You must do your research. Or, you can simply take on a part-time job if you have the time and energy! That can mean consulting, so you can still work for yourself, or you can become an employee. There is also real estate as an option, for investment or rental income. Got a book inside of you? Write it. Create content, create royalties, create income. When you can control your sources of income, meaning, how many you have and how much comes from each of them, you can position yourself for wealth.
Now, lets put it all together. Your mindset about money directly impacts the financial behaviors you will or won’t adopt, which in turn will lead to some outcome, favorable or unfavorable about your money situation. When combined with your ability to control how much money you make and from where, you will either position yourself to be wealthy or not. You must believe you are destined for wealth, make responsible financial decisions while adopting healthy practices and optimize and maximize your ability to make money. You can join our community of money masters, who are learning and practicing just that! Receive the inspiration, strategies and ideas to make the most of your journey to wealth. It’s all about positioning yourself.