Ways to Develop a Wealth Mindset

It takes more than a mindset to make you rich. However, if you read about wealthy people, you’ll see that they share what’s generally called a “wealth mindset.” This is a focus on building and maintaining wealth—not just earning and spending money in the short term.

If you want to be wealthy one day, the first step is to cultivate this kind of outlook. Here’s a look at a few ways to develop a wealth mindset.

Put Real Thought Into Your Spending

If you start making more money, accumulating more money in savings, or both, beware of lifestyle inflation. This is a common phenomenon where a person’s spending habits go up with their wealth.

However, truly wealthy people don’t just spend money indiscriminately. When you develop a wealth mindset, you think about both the short-term and long-term impacts of your spending.

Here’s an example. Let’s say you’ve just gotten a new job making a lot more than you used to. You have a reliable car already, but you’re considering buying a motorcycle to enjoy on the weekends.

Before the purchase, you consider the sale price of the motorcycle. But to truly develop a wealth mindset, you need to look at the various long-term costs associated with the purchase as well:

• Motorcycle gear
• Gas
• Insurance
• Taxes
• Maintenance and repairs

Every purchase comes with an opportunity cost. After all, you could have spent the money on something else.

That doesn’t mean you should never purchase anything beyond the barest essentials—it means you should look carefully at the financial impact of each purchase. Does the enjoyment you’ll get out of the purchase ultimately matter more than the money you’ll lose?

Create a Financial Strategy

This might sound like an obvious suggestion. But when it comes to building wealth, too many people focus purely on earning more money. Earning more is a good thing, but most truly wealthy people don’t just earn more—they also work hard to manage and grow the money they have. One of the smartest ways to do this is to invest carefully.

When you develop a wealth mindset, you shift your financial focus from the short term to the long term. To that end, we recommend choosing wise investments; even small investments count, as they have the potential to build over time with compound interest.

Unless you already have a strong working knowledge of the investment landscape, you might be unsure of where to begin. Learning about investing on your own may be useful, but an experienced financial advisor can also help you make sense of your options and choose a strategy designed for meeting your goals.

Ditch the Poor Mindset

If you want to develop a wealth mindset, first make sure that you aren’t holding on to a poor mindset. Plenty of people have this kind of damaging outlook without even knowing it. If you have any of the following beliefs, you might have a poor mindset:

• Wealth is reserved for a select few people.
• I’ll never get out of debt or reach my financial goals.
• There are no opportunities for change.
• Pursuing wealth is inherently immoral.

These beliefs can be insidious and hard to let go of. But the first step to letting them go is to identify them. When these types of thoughts pop up, counter them with your wealth mindset. For example, if you start thinking you’ll never be out of debt, remind yourself that you have a financial plan that helps you move toward your goals.

Want to Develop a Wealth Mindset? It All Starts With the Right Plan

Almost no one stumbles into wealth by accident. Becoming wealthy is a noble goal, but it can be hard to know where to begin. A financial advisor in your corner goes a long way in pursuing your ideal financial future with confidence.

At Comprehensive Advisor, we can help you set clear financial goals. But that’s not all we do—we also help you put your financial plan into action, monitor your progress, and adjust as needed. Ready to take the first step? Email us at info@ComprehensiveAdvisor.com or call (760) 813-2125.

About Our Advisors

Brett Gottlieb is the founder of Comprehensive Advisor and a financial advisor with nearly two decades of industry experience. He graduated from California State University-Chico with two bachelor’s degrees, in business administration and economics, and is Life Insurance licensed in several states. He is passionate about guiding his clients on retirement income planning, helping each client pursue their specific retirement goals, and defending the assets his clients have worked so hard to achieve. Brett is a California native and currently resides in San Elijo Hills with his beautiful wife and three children.

Our team of qualified professionals have experience in the financial service industry, and our advisors hail from some of the largest independent broker/dealers and banking institutions in the country. They have dedicated their professional careers to creating personalized financial solutions for individuals and families who seek successful retirement planning and currently offer investment advisory services through AE Wealth Management, LLC. Our advisors take a common-sense approach to the planning process and work with clients to create a retirement road map to help ensure their assets are protected and they receive the income needed to enjoy their future. Based in Carlsbad, California, they work with clients throughout San Diego County and beyond. Learn more by connecting with Brett on LinkedIn or email them at info@ComprehensiveAdvisor.com.

Investment advisory products and services made available through AE Wealth Management, LLC (AEWM), a Registered Investment Advisor.  C.A. Financial & Insurance Services, CA Ins. Lic. #6000262. This material is intended to provide general information and is believed to be reliable, but accuracy and completeness cannot be guaranteed. Investing involves risk, including the potential loss of principal. Any references to protection benefits, safety, security, lifetime income, etc., generally refer to fixed insurance products, never securities or investment products. Insurance and annuity product guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company. 2183289 – 1/24