Updated: Jul 13, 2021
Some people believe that the only way to become wealthy is to be born into a wealthy family and to have everything handed to you. However, the truth is that the American dream is alive and well in 2021 and almost anyone can become wealthy in the United States.
If you want to become wealthy, one of the most important things that you can do is to acquire a rich mindset and to shed all of the negative beliefs to keep your wealth suboptimal. Believe it or not, the way you think can have a dramatic impact on the amount of money that you are able to earn throughout your lifetime.
In this blog, we will break down the exact steps that you can take to break free from your current mindset and to cultivate a rich mindset in order to optimize your wealth. Let’s get started!
Steps to Cultivate a Rich Mindset
1. Start Making Your Money Work Hard For You
Wealthy people know that one of the best ways to build serious wealth is to make your money work hard for you. When your money is working hard for you, you grow your income streams and take pressure off of your job to bring in all of your money. Unfortunately, many people focus too much on working hard for their money instead of making their money work hard for them. Don’t fall into this trap; start looking for ways to make your money work hard for you. Investing is one of the best ways to do this. 2. Do Not Let Fear Get In Your Way
Wealthy people take calculated risks because they know that doing so is the only way to get ahead. People who are not wealthy on the other hand operate from a perspective of pure fear. They never take risks because they only focus on what can go wrong instead of what can go right. Wealthy people also experience fear and anxiety, but they never let these things stop them from taking smart risks. You shouldn’t either. Just make sure that there is a good risk/reward ratio before you make the move, and that you can properly handle any losses you might incur if your decision doesn’t pay off. 3. Be Solution-Oriented
When you are faced with a difficult problem, do not fixate on the problem. Instead, focus on the solution! Put your energy and your brainpower into solving the problem as fast as possible. Wealthy people face many problems in their daily lives too, just like other people. The difference is that rich people turn themselves into master problem solvers and find ways to solve the difficult problems in front of them. 4. Expect to Be Well Rewarded for Your Hard Work
Rich people work hard too, but they expect to be paid an amount of money that is equivalent to the value they add. Many people do not feel that they should be well compensated for their hard work and for the value they provide to a business. As a result, they may never ask for a raise or a promotion or do other things that could lead to an increase in income. Know your worth!
5. Recognize and Take Advantage of Good Opportunities
In order to grow your wealth, you need to constantly be on the lookout for great opportunities and take action when they do come along. Rich people act decisively when opportunities come along. They focus on the rewards and use them as motivation to help them overcome any obstacles that might get in their way. Many people, on the other hand, fixate on the problems and don’t put enough effort into solving them. 6. Develop Yourself So That You Are Strong and Talented Enough to Overcome Obstacles
Many people live their life trying to avoid problems. Wealthy people focus on strengthening themselves so that when they encounter a problem, they are capable of dealing with it. You must constantly focus on improving yourself. You can do this by improving your job skills, working on mental fortitude, making yourself physically stronger, improving your communication skills, etc. The goal is to be strong enough so that you do not run away from problems, but instead, tackle them head-on and never let them stop you!
7. Become Extremely Conscious About How You Manage Your Money
Many people mismanage their money or completely neglect even attempting to handle their money properly. People who are wealthy are always looking for ways to make more money, invest more money, and save more money. Wealthy people understand that proper money management is one of the single most important things to master when it comes to becoming rich. Managing money properly involves arranging your finances in such a way that your wealth grows over time like a snowball. This means avoiding pitfalls such as wasting money on depreciating assets and spending too much. It also means making investments that grow in value over time. The better that you get at managing money, the wealthier you will become. The two tend to go hand-in-hand.
8. Learn to Invest In Real Estate
Over the last two hundred years, roughly 90 percent of the world’s millionaires have been created by investing in real estate. The reason why real estate investing is so profitable is because it generates consistent cash flow which tends to go up periodically due to rising rent prices and because properties tend to appreciate significantly over time. There are many different ways to get started with real estate investing. You can buy a single-family home and rent out a room, or a basement. You can buy a duplex and live in one side and rent out the other, or you can work with a pool of investors and buy a multi-family property, etc. Learning how to properly invest in real estate can take a little bit of time. However, it is one of the most worthwhile things that you can do for yourself. Many wealthy people are fully aware of the benefit of real estate investing, and that is why so many of them do it. 9. Think Big
People who are wealthy don’t think small. Instead, they create lofty goals for themselves, and they make plans and take action towards accomplishing their goals. Many people think small and cannot imagine creating wealth beyond their typical nine-to-five job. If you want to become wealthy, you have to get used to thinking big and doing things differently. For most people, a regular 9-to-5 job is not going to be enough to create an abundance of wealth, unless they happen to be a CEO or have another highly paid position. To think big, you should think about creating multiple streams of revenue and thickening these streams as much as possible. 10. Be Positive
It is a lot easier to persevere and to remain focused on accomplishing your goals if you have a positive mindset. Wealthy people are aware of this. That is why they constantly try to see the glass as half full, instead of half empty. They are always looking for ways to make the most of the cards they are dealt in life. They don’t focus on complaining or wishing that they had other cards dealt to them. They simply focus on optimizing every aspect of their life as well as they can. For many wealthy people, it is positivity that makes the difference for them on their journey to becoming successful. Conclusion
If you want to become rich, then the mindset that you have can have a tremendous impact on the level of success that you are able to achieve. Following the tips in this blog can help you to cultivate a wealthy mindset if you do not have one already. Some people think that it’s not okay to think like a wealthy person, or that they have to apologize for being ambitious and wanting to become wealthy. But you don’t! This is America, after all.
In America, everyone has the opportunity to try to get the most out of their life and to create as much wealth as possible. So, if you find yourself encountering people who try to shame you for wanting to be wealthy, then consider cutting these people out of your life. The people you surround yourself with can also have a major impact on the level of success that you are able to achieve, in addition to the mindset that you have.
But, the most important thing is to never give up. No matter how many setbacks you have or how many difficulties you encounter, if you don’t give up, then you have a chance of achieving your dreams! Maybe you too can be the next millionaire or billionaire!
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About the Author
Ellie is the founder of Blue Lake Capital, a commercial real estate investment firm specializing in multifamily investing throughout the United States. At Blue Lake Capital, Ellie partners with both institutional and individual investors to grow their wealth by achieving double-digit returns by investing alongside her in exclusive multifamily deals they usually don't have access to.
A defining factor of Blue Lake Capital’s strategy is founded in utilizing machine learning/artificial intelligence throughout the course of all acquisitions and asset management. This advanced technology enables the company to produce accurate and data-driven forecasting for all assets on a market, property, and even tenant basis. In doing so, Blue Lake is able to lead commercial investments with the full capabilities of today’s technology.
Ellie is the host of REady2Scale, a podcast that highlights honest, insightful, and thought-provoking discussions on the multiple approaches for successful real estate investing.
She started her career as a commercial real estate lawyer, leading real estate transactions for one of Israel’s leading development companies. Later, as a property manager for Israel’s largest energy company, she oversaw properties worth over $100MM. Additionally, Ellie is an experienced entrepreneur who helped build and scale companies by improving their business operations.
Ellie holds a Masters in Law from Bar-Ilan University in Israel and an MBA from MIT Sloan School of Management.