What does it take to become a self-made millionaire? The right opportunities or investment strategies perhaps? According to Ramit Sethi, a self-made millionaire and the author of “I Will Teach You To Be Rich,” the right mindset is key.
He says humans typically fall into one of two categories concerning money. There are those of us with a scarcity mindset, who believe money is something to be protected and saved. Then there are those of us with a growth mindset, who see money as a tool that can be used to create even more wealth. It’s these people, who look for smarter ways to use their money, that he says typically become the wealthiest.
Rather than looking for discounts and ways they can reduce their spending, he says the wealthiest people typically spend their time pursuing ways to make more money, "whether it's through a side business, whether it's through negotiating salary, whether it's through investing early on and taking advantage of compound interest over time."
While many of us feel time-poor, he challenges the idea that we don’t have time to make more money.
"You've got time after work. Don't tell me you don't have time, the average American watches five hours of TV a day," he told CNBC. "Start a side business, go full time if you want. But think about how much you can grow and earn versus how much you can cut and protect, and that is how you start crafting your own rich life."
That’s not to say that reducing spending can’t be a valuable exercise. It’s smart to cancel subscriptions you’re not using and eat in more often. However, Sethi reminds us that "There's a limit to how much you can cut but there is no limit to how much you can earn."
"If you want to be scarcity driven, then you're going to spend the rest your life saying 'Don't take away what I have because there's no way I can change it,'" he says. Instead, he suggests changing your mindset and telling yourself, "I can always grow, I can always learn, and I can always make myself more valuable to the market and create more value for myself."
Resolving to make better use of your money and grow your wealth is the easy part. Executing your plan is much more challenging. Thankfully, you don’t have to do it alone. Simply call Chase Edwards on 1300 854 833 to learn more about how our money experts can create strategies to make your money work better for you.