If you think you can’t have any money, you certainly won’t, according to money mindset and how it affects you.
- A fixed mindset doesn’t aim for growth
- Growth mindset is a way of looking at the world
- Mindsets are how you talk to yourself in your mind
What Is A Mindset?
A mindset is more than just the way you see the world. It encompasses the language you use to talk to yourself and how you see yourself interacting with the world. According to Stanford University psychologist Carol Dweck, mindsets exist as either fixed or growth.
Fixed mindsets are strict in their interpretation of the world, believing gifts are innate and unlearned, and that errors may reflect badly on them, instead of providing an opportunity to learn and change.
Growth mindsets see the world as open to educating them for, well, growth. Make a mistake? OK, what can you learn from it? You may have abilities and talents you were born with but you also have the capacity for additional learning and opportunities for change.
Your Money Mindset
Your money mindset is what your overarching view is of your financial situation. If you ask a millionaire if they have money troubles, what will they tell you? Even if there were problems with an individual investment, or some real estate venture, overall, their mindset doesn’t see problems, it sees opportunities.
Working Toward The Future
If you don’t believe in your ability to save money for the future, you’re putting yourself at a disadvantage already. If you’re confident in your ability to save money for the future, you will likely find a way. That’s sort of what is meant by mindset. It’s a way of looking at the world while doing the work you need to do.
Say you’re working at a corporate job with a 401(k) available and you’re saving the minimum amount for retirement. Are you really going to be able to retire on 3% of an annual salary? Do you know if it’s possible?
Learning about your retirement savings is your responsibility and you owe it to yourself to make sure your retirement will be as comfortable as you want it to be. So what can you do? Learn about what you can do to benefit yourself in the future.
Self-Directing Your Retirement
A growth mindset involving a money mindset means looking for additional ways to save for retirement beyond what your corporate job has set up for you as an option. What other options are there? Looking into the Self-Directed IRA or Solo 401(k) for those working for themselves or interested in making a bigger impact on their retirement goals in an excellent start.
Money mindset says growth is possible, and you can do it through the power of savings, and the almost magical qualities of deferral and compound interest, as well as by making investments in both traditional and alternative assets.
A Self-Directed IRA allows you to save for retirement while investing in all types of assets. Traditional stocks and bonds are available in traditional or Self-Directed IRAs but SDIRAs have more available to them as well. Real estate investing is possible, with opportunities in raw land, condos, hotels, multi-family housing, and more.
You can invest in cryptocurrency, including Bitcoin, In fact, the IRS has determined that there are very few things you cannot invest in, although life insurance and collectibles are two. But precious metals are an option, as are tax liens, and a variety of other opportunities limited only by the imagination of the investor.
Growth Money Mindset
Having a growth money mindset means you’re looking at the future, and future wealth, as a choice, an opportunity, and almost as a mystery to explore. Be curious about what your money can do for you, instead of being tied to making money simply as a requirement. You do need money to live, and the more money you have the easier things become. Try opening your money mindset to being a growth mindset.