Believe it or not…being wealthy is a choice.
I’m not sure when I first really understood this, but when I got” it, it made a big difference to me.
I probably read it first in a Robert Kiyosaki book.
However, I do remember thinking – “That can’t be true. It’s not that simple. You can’t just choose to become rich.”
But then over the years as I learned from my mentors and studied the psychology of success, I discovered that Kiyosaki was actually right and I was wrong.
Yes – being wealthy is indeed a choice.
Over the years I learned that becoming rich begins with something as simple as the thoughts that you put into your head.
Wallace Wattles first wrote about it in “The Science of Getting Rich” and T. Harv Ekers tweaked the words in his great book “Secrets of the Millionaire Mind.”
They both taught me that…
Your thoughts lead to your feelings. Your feelings lead to your actions.
And your actions lead to your results.
Of course your thoughts are reflected in the vocabulary that you choose to employ.
So, I’ve heard others put it this way:
Your thoughts become your words. Your words become your actions. Your actions become your habits. Your habits become you.
Because the words you use – out loud and in your head (you know that little voice inside your head) are a pivot point between thoughts and actions, the words that you use have a surprisingly profound impact on obtaining wealth.
So here are 5 what I consider a “scarcity mindset” phrases, each followed with an “abundance mindset” phrase.
If you use a scarce vocabulary, it will be nearly impossible for you to obtain real wealth.
So let’s run a little check on your vocabulary.
Which of these are you most likely to say or think to yourself?
No one shrinks their way to wealth.
No one ever got rich paying off their mortgage or paying off their car.
On the other hand, those who embraced good debt and used leverage to buy income producing growth assets like real estate developed financial freedom.
Sure, you must spend less than you earn, otherwise you’ll always be in debt.
But the point of becoming wealthy is to live an abundant life and to be able to enjoy the good things in life including giving back to your family and the community.
So rather than living within you means – why not expand your means?
Focus on production, not reduction.
It can be a stunning revelation for you to learn that getting your money to work for you will not create real wealth.
You just can’t save yourself to wealth.
Instead ethically employing the money of others – you tenants, the government, and the bank – and now you have the ingredients for true wealth creation!
As I said, you’ll never save your way to wealth.
Even at any reasonable rate of return, compound interest only has a chance at providing an “adequate” retirement for you when you’re older – and never wealth.
On the other hand, leveraging the use of other people’s money means you achieve your ROI (return on investment) from their capital, not yours.
To me the word “Budget” implies frugality, scrimping, saving and cutting back.
You can only cut so much off your spending, and then you end up living in a way that degrades the quality of your life and that is time that you’ll never get back.
Instead, I suggest you build a property investment portfolio that will increase your asset base and in time deliver multiple streams of income to you.
That increases your income potential doesn’t it?
Scarcity or abundance begin with your thoughts and your words.
So which life do you really want to design for yourself – one of scarcity or one of abundance?
As I stated right at the beginning… you do actually have a choice.
A rich man digs for gold, while a poor man is concerned with the cost of a shovel
Subscribe & don’t miss a single episode of Michael Yardney’s podcast
Hear Michael & a select panel of guest experts discuss property investment, success & money related topics. Subscribe now, whether you're on an Apple or Android handset.
Need help listening to Michael Yardney’s podcast from your phone or tablet?
We have created easy to follow instructions for you whether you're on iPhone / iPad or an Android device.
Prefer to subscribe via email?
Join Michael Yardney's inner circle of daily subscribers and get into the head of Australia's best property investment advisor and a wide team of leading property researchers and commentators.