Use The Asset Oriented Mindset to Create Great Wealth

by Stephen Wealthy
1322 views
0 comment
2
FacebookTwitterEmail

Use the Asset Oriented Mindset to Create Great Wealth

Use the Asset Oriented Mindset to Create Great Wealth:  In this and the following series of blog posts we will be discussing what we believe is the most powerful method for building wealth.  We’re talking about mounting, stacking, and building an asset base that you otherwise would not have accomplished.  On top of this we’re combining this with our most up to date views on asset allocations and what tweaks we might make to capture the latest shifts on how wealth is built and sustained in the 21st century.  The answers to finance questions 10 to 20 years ago aren’t going to hold up for the next 10 to 20 years; they expire and shift but the core principles will always stay the same. 

In this series of blog posts we will be covering the following 6 topics with expected publishing dates in parenthesis: 

  1. Asset Oriented Mindset Overview (This Article)
  2. How the Rich Spend Their Money
  3. Four Reasons You Should Invest in Bitcoin
  4. New Portfolios with Stocks, Bonds, and Crypto
  5. Death of the Dollar Portfolio
  6. The Plan for Riches and Wealth

First, It All Starts with a Mindset

First and foremost getting rich, and being rich is a mindset.  It’s about how you view problems, how you solution, where you put your effort and energy, your expected results and outcomes, and what you do with these outcomes and profits.  It is a powerful attitude about solving problems, proactively with an internal drive to accomplish despite what others are doing.  Because you truly want to put your energy into those problems, solve them, and build something of value from it.  It’s taking that last step and turning that solution into a system that can be repeated over and over and deliver measurable value.  It’s about doing and accomplishing; not sitting and complaining.  Knowing where to put your energy and believing you’ll receive the expected outcome.  The Rich are not afraid to fail; its part of the due course needed to find the final outcome; but they believe because of their tenacity and drive they will eventually find the solution.  They have an entrepreneurial spirit and see opportunity where others see hardship.

The Poor Mindset

To highlight the rich mindset, it might help if we contrast the rich mindset against the poor one.  A poor mindset focuses first on consumption and then on ways to afford it.  Often trading time as an employee for currency which is then traded for the item.  When insufficient currency is found, then a loan is considered as a means to acquire the item.  Sadly these items seldom last and are soon discarded leaving the loan still left to be paid.  The taxes levied against them back them into a corner of helplessness, economic despair and a feeling of running on a treadmill.  

Constant Complaining

Complaints about the difficult of affording today’s lifestyle is often voiced, seldom without searching for a solution or answer to the problem; the problem is for someone else to solve.  The “machine” of society, or the government, or the big crooked banks are to blame and therefore there’s to solve.   The poor mindset is stuck in an endless cycle of earning, consuming, and complaining.   They feel problems and pain and see spending as a way to assuage this discomfort and keep pace with the Joneses.  But the Joneses have a different mindset and that makes the difference.

The Rich Don’t Always Look Rich

Who is the one rich and who is poor one in this picture? 
Use the Asset Oriented Mindset to Create Great Wealth

The answer, in my mind, is that you cannot tell without talking with them, finding out their interests, where their focus lies and listening carefully to their words.  Better yet, spending a day “in their shoes”, and doing what they do and seeing how they spend their time will show you who is rich and who is poor. 

Think on this: “It’s possible they are BOTH rich.”

It’s possible that both the men who wear these shoes have powerful minds that lead them to solve problems and put their time and energy into things that last and increase in value over time.  
 
Too often we’re all consumed and wrapped up with buying things that we won’t even have 5 years from now.  It ends up in the trash or we sell it for less than half.  Then we complain, ask for a raise, and do it all over again.  

The Acid Test

Want to know where you’re at?  Answer this question by honestly letting yourself think of the first thing that comes to mind:

You just inherited $100,000 from a late relative, what do you do with it?

If your answers circle around any of the following, you need to improve your mindset:

  • Pay off debt for consumer goods you’ve already bought and used
  • Buy a new car from a dealership
  • Go on an expensive nice vacation
  • Save it in a CD, GIC, or savings account

If you answered any of the following you’re on track:

  • Give some to your favorite charity
  • Put a down payment on a rental property — even with a mortgage
  • Buy stocks, bonds, gold, index funds
  • Buy equipment or tools to help your business grow
  • Start an online business and try selling a product or service
  • Education, regardless of your age
  • Use the capital to start the business you’ve always dreamed about
Look at the lists and recognize the common themes.  The first is self-centered, the results are temporary and with no risk nor chance to improve of your station.  The second list benefits others even though you’re the still the primary benefactor.  You need the talents and time of others to accomplish your ultimate goal.  The second list involves risk, but if it works it will greatly improve your station in life.  Lastly, the second list lasts well beyond 5 years: education, investments, property, business skills.
 

What comes first: The Money or The Mind?

Next time you meet and get to spend time with a wealthy person, ask them what came first: the money or the mind?  Do they use the asset oriented mindset to create great wealth?

In an incredible study done by Thomas C. Corley for the Business Insider, he spent 5 years interviewing and analyzing how rich people get rich. He found there were generally 4 paths to wealth:

  • 49% were Saver-Investors, or average people with modest incomes who consistently saved 20% or more of their income and prudently invested their savings over a period of 32 years
  • 18% were Big Company Senior Executives
  • 7% were Virtuosos, or top experts, in their field
  • 51% were Dreamer-Entrepreneurs (Twenty-seven percent of these Dreamer-Entrepreneurs failed at least once in business)

** Please note this is their math, not mine – I acknowledge their percentage sums to 125%!!

Up Next: Acquiring Assets and Controlling Consumption

In our next post we’ll start drilling down into the mindset of that rich mindset and getting to the bottom of what it looks like to live in that mindset.  How they see day to day expenses and how they invest their time, energy and money.  

Before You Leave, and While We Have You:
  • Like and share this blog post! We’re trying to gain exposure and expand our reader base and we could use your help!
  • Follow me on twitter! @mywealthmoney
  • Subscribe to our newsletter so you’re always on top of our latest posts!
  • Read some of our other blog posts: