Respect for money = having awareness of what it actually is.
What are the most important wealthy mindset secrets?
As you know, becoming wealthy requires a certain mindset.
Many people have emotional barriers to money.
They don’t understand its purpose.
Money is a tool to make trades more effective. It keeps capital circulating in the market. This allows society to function.
A common medium of exchange lets resources (value) flow freely.
The wealthy mindset secrets we’re about to review will teach you how to use these flows to your benefit.
By the time you finish reading this post, you will be equipped with engines of wealth. This will help you avoid massive mistakes, make better investments, and live a higher quality of life.
So read on.
1. Gain Assets Avoid Liabilities
People who don’t understand money mix up assets and liabilities.
Wealthy people stick to the principle that they don’t take on liabilities.
Many people have money, but they aren’t aware of these wealthy mindset secrets. You see this all the time with celebrities, ball players, and lotto winners.
Johnny Depp’s £300m running out as he ‘spends £1.6m every month on his 14 homes and 150ft yacht.https://t.co/2dAk7ZFi8f
— Veritas (@veritasnaut) February 28, 2017
They end up wasting everything on BS.
Money is just a tool to expand your form. It gets you where you’re headed at lightning speed.
(For some, it’s right off a cliff).
What are the main differences between assets and liabilities? Let’s go over some examples.
Examples Of Liabilities:
- Car payment
- 9-5 job
Examples Of Assets:
Liabilities are scheduled hamster wheel payment traps. They keep you stuck in place without attaining leverage.
Risk is subjective to your personal situation. You can’t assess risk objectively with lots of liabilities.
Freedom allows you to see things with clarity (limited downside with unlimited upside).
What’s the best way to attain assets?
2. Be The Owner
Ownership is the ultimate asset.
- Buy everything for cash.
- Own everything outright.
- Own your own infrastructure and have no liabilities.
Even though losses are a function of the game, the idea is to get yourself into a winning situation. Then, repeat it many times.
If you anchor yourself to a number, you take on the liabilities the number can pay for.
Want to leave your liabilities behind?
And here’s another great idea.
3. Value Your Time
As you’ve realized, there are tons of liabilities posing as assets.
Wantrepreneurs love “networking events” because it gives them the illusion of action. They get to talk to a few “influencers” and other wanna-be’s such as themselves. The honest truth is valuable people are hard to get ahold of.
Real networking is done by providing value.
The most important business card is the one you put in the ATM.
Just because something’s available, doesn’t mean it’s good for you. Only consume what adds value to your objectives. Don’t even let yourself get exposed to anything else.
When you ditch everything weesh, you start to value your time correctly – then you become rich.
The 3 most important wealthy mindset secrets are:
- Gain assets (freedom, niche sites, e-commerce store, etc) avoid liabilities
- Be the owner
- Value your time
The ultimate takeaway is to be respectful to money, yet indifferent.
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Relevant Reading: How Rich People Think