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3 Ways to Develop a Wealth Mindset

3 Ways to Develop a Wealth Mindset

| May 15, 2024

Becoming rich doesn’t happen by wishing it into existence. If you explore the lives of wealthy people, you’ll notice they’ve got something in common—a “wealth mindset.” It’s a perspective that focuses on prioritizing long-term wealth building over quick cash splurges.

Dreaming of hitting the big leagues? Step one: nurture that mindset. Here’s a sneak peek into the strategies that can help you start thinking like a wealthy mogul.

1. 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?

2. 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 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 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 the best strategy for meeting your goals.

3. 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.

Laying the Foundation for a Wealth Mindset

Wealth rarely knocks on your door by chance. While aspiring for riches is an admirable goal, figuring out where to start can be a challenge. That’s where a savvy financial advisor comes in handy, as they can offer you tips to build a wealth mindset while guiding you toward your dream financial future.

At Premier Planning Group, we’re here to help you define clear financial objectives while putting a custom plan in place. We’ll also roll up our sleeves to help you execute your plan, track your advancements, and tweak things along the way. Ready to kick-start your journey? Call our office at (443) 837-2520 or email my executive assistant, Talia Grover, at taliagrover@premierplanninggroup.com to set up a complimentary consultation.

About Brion

Brion Harris is the CEO, founder, and managing partner of Premier Planning Group, an independent financial firm specializing in working with pre-retirees and retirees, helping them create customized wealth preservation and retirement distribution strategies. With over 20 years of experience, Brion has developed deep knowledge and skill in helping his clients simplify their finances and find confidence in their financial future. Brion and the Premier Planning team are known for their unparalleled client service and their dedication building long-lasting relationships with their clients. As a result, Brion has been the recipient of the #1 Advisor Leadership Award* at Summit Brokerage Services for eight years running and has a reputation as one of the top retirement advisors in the business. 

Brion is a proud 20-year resident of the Annapolis community, where he resides with his wife, Elizabeth, their three children, Addison, Jay, and Scarlett, and their two dogs, Pepper and Coco. When he’s not working, you can find him boating, skiing, traveling, and enjoying good food and music with his family. If you want to learn more about Brion, connect with him on LinkedIn.

*The #1 Advisor and Leadership Award is based on production data while at Summit Brokerage Services, Inc. Brion Harris received the award in 2014, 2015, 2016, 2017, 2018, 2019, 2020 and 2021. This award is not a guarantee of future investment success. This recognition should not be construed as an endorsement of the advisor by any client.