- Personal Finance
Wealth Is 80% Psychology
The psychology of the millionaire mind
Why is it that some people have become financially free and within a short time span? Perhaps even within a few short months! While many others have not managed or simply failed to change their situation? The answer may surprise you!
Financial freedom is influenced more by Psychology than technology. I would say that 80% is based on psychology while the remaining 20% is influenced by technology.
This 80/20 ratio also applies in sports. Among the best in a sport, while another is not. The technical differences are usually minimal, but the differences in psychology are immense.
The best sport athletes have a certain belief, image, internal dialogue and behavior set in their mind, usually resulting in a better outcome – who do win! Sport athletes with a lower ranking have a different model set in their mind and therefore, the outcome will be certainly different.
Is it the mind that makes you a winner or loser, rich or poor?
Please do not get me wrong, I understand that many find themselves in difficult financial circumstances. But this is not about whether your situation is difficult - and only you can possibly understand. It is about how the mind can adapt to certain ideas, patterns, images and false beliefs, which can indeed make it difficult to escape unless, you are aware of how it all works!
The mind of the rich operates differently from that of the poor. A study on the mind of millionaires was conducted a few years ago. They wanted to understand whether there were differences in psychology that led to differences in behavior. In fact, if the 80% of the rich who are first generation, i.e. was born poor, that means that those who have become rich while building on the same basis had a different way of thinking than most who have not changed their financial situation.
The study concluded with these findings on the psychology of the rich:
• Rich accept total responsibility for their actions and their life
• The rich know that wealth is a State of mind which goes beyond money
• The rich know that financial freedom is the result of a replicable model
• The rich know the importance of "peer group" and attend among people that can reinforce and support their behaviors and their belief.
The first point is key. If in your life you find yourself blaming others for what happens to you, and blaming the responsibility on others for your financial situation, then your strategy and behaviour will not bring you towards wealth.
But as many will say – "if I am out of work because the company where I was working had to close then how can it be my responsibility for what happened?" It is your responsibility !
It is you and only you that has the responsibility of your income and your wealth. If you've put yourself in a condition of having only one source of income: your salary! then you've managed to put yourself in risky situation.
Today there is no "secure job" it is better to understand this and act accordingly
And, as far as how qualified you are and how good you are at your job, if you have skills that today's market does not reward, then there is no need to get upset and blame it on globalization or unfair competition or with the boss, because it's you and you alone that will have to take the responsibility for developing those skills that today's market will pay for.
Create your financial freedom by learning to create tasks or systems that generate income for you.
You'll See It When You Believe It.
As Dr. Wayne W. Dyer in his book (You'll See It When You Believe It) explains; In your life you'll only see what you believe. If for example you believe in scarcity ( if you believe you have limited resources) and speak constantly of it, you will then find lots of it in your life. The same would be true if you believe in abundance, and always speak of it. You would then find your life filled with abundance.
There are many experiments that deminstrate that the mind cannot perceive what actually exists. Therefore, right before our very eyes, our ideas and beliefs make us blind.
Or vice versa, thus allowing us to see things that at first we were unable to perceive, even if they were standing before our very own eyes. Oliver Wendell Holmes once said, A man's mind, once it has been expanded to accept a new idea or new belief, never regains its original dimensions." The mind, our thoughts, will never go back to its original idea!
The idea of financial freedom is something that definitely broadens our mind, but it requires to be filled with new thoughts, new beliefs, new images, new words.
For anything to exist in the world, already exists in the mind of its creator. This also happens to apply to financial freedom. You have to believe it before you achieve it.
The technical parts are useful but only contribute to 20% of the results. The remaining 80% are your thoughts, what you observe and your spoken words.
Hope you succeed in anything you set your mind too!
But let us also not forget that Love is the real key to success...