In a world where the rich are only getting richer and the income gap between the upper class and lower class is only getting wider by the day, many citizensRead More
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]]>In a world where the rich are only getting richer and the income gap between the upper class and lower class is only getting wider by the day, many citizens wish to know the secrets of the wealthy.
How do these people manage to get wealthy and more importantly, how do these people keep their wealth?
As I have learned from the many wealthy authors we have interviewed, a much larger percentage of the rich are self-made than many are willing to believe. Generally, wealth is not just handed down from generation to generation, and every person who is rich did not get there because someone simply gave it to them. By following these 7 personal finance secrets of very wealthy people, you too can join the financial elite.
The typical way of thinking is for a person to trade in their valuable time for an income. By following the majority of society and using this method to make a living, you are trapping yourself at the bottom of the financial totem pole. Wealthy people do not allow themselves to fall into this lifestyle and do everything they can to break out of the cycle of trading 40 hours or more for a relative pittance.
A wealthy person earns their money by tapping into their creative mind or by discovering a consumer need that has yet to be adequately filled. To become wealthy, stop burning the midnight oil and breaking your back by working as many hours as possible. Work smarter, not harder.
People with wealth do not let themselves be boxed into one way of thinking. There are decisions in life that must be made rationally, others that need to be made logically and some that require a blend of both mindsets. Each form of thought has its rightful place and the wealthy know when it is time to tap into their logical thought and leave their emotions out of the equation.
Lower and middle class citizens tend to make decisions that are based entirely on emotion. By blending the two ways of thinking, a person can maximize their ability to make the correct decisions and improve their financial position.
Since ideas are how people acquire true wealth and great ideas are all around us every day, that means that money is infinite. Those who are not wealthy do not see money as something that is easy to acquire and hold onto. This mindset starts to become a self-fulfilling prophecy, which will keep you from reaching your true financial potential.
The reality is that there is more than enough money out there for everyone to live their dreams. It is as simple as realizing that money is generated by ideas, not hard work. While you can work hard for your money, those who are truly rich abandoned this idea a long time ago and you should too.
The wealthy view money as the freedom to do whatever they want to do, a passport to pursue their heart’s desires. Lower and middle class citizens begin to equate money with status and will purchase items to make themselves appear to be more rich than they really are. The wealthy do not waste their time with attempting to project an aura of riches.
If you are trying to build up your fortune so that you no longer have a boss and can live your life the way that you want to, this is the right mindset to have. If you are seeking riches so that you can purchase items that will show off your abundance, this is the mentality of the poor.
This means that you should live the way that you would if you were rich. This does not mean purchasing a Mercedes and a mansion, this means that you should expect to become rich. You are not going to win the lottery to earn your riches, so it behooves you to start structuring your life in a way that will allow you to make more.
By training yourself to expect large amounts of money, it will become much easier for you to make the sort of aggressive moves that it takes to become. Expecting to become rich means less trepidation when the time comes to take a major risk.
Those who have never acquired any wealth will bemoan the lack of family time that the wealthy have and try to tell you that it is impossible to live a balanced life. This notion is patently false and the wealthy are never forced to pick one way of life over the other.
Since they longer trade their money for time, it is much less challenging for them to balance their schedules. The wealthy generate their income by focusing on ideas, not by ignoring their families and friends.
The wealthy believe in continuing their education and they do not believe in the classroom environment. While the rich are often well educated, they do not confine themselves to traditional methods of learning. They are a hands on sort who train themselves on the job.
As the lower and middle classes allow themselves to fall under the spell of trashy entertainment, the wealthy seek knowledge and enlightenment wherever they can find it. They are intellectually curious and always seek new forms of mental stimulation.
Build Your Money Muscles by Joan Sotkin
Live Richer Challenge by Tiffany Aliche
6 Months to 6 Figures by Peter Voogd
The Millionaire Fastlane by MJ DeMarco
From Worry to Wealthy by Chellie Campbell
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]]>A summary of things you should know about Build Your Money Muscles according to Joan Sotkin: Introduction In this episode Joan Sotkin takes a deep dive into her book, BuildRead More
The post A Preview of Build Your Money Muscles with Joan Sotkin appeared first on The Entrepreneurs Library.
]]>In this episode Joan Sotkin takes a deep dive into her book, Build Your Money Muscles, where she shares 9 simple exercises for improving your relationship with money.
In her book Sotkin provides a common sense, step-by-step guide that will create an achievable pathway to financial security and prosperity through personal growth rather than quick fixes. The goal of the book is to help you build a secure financial base, understand why you are struggling with money, manage money more healthfully, and climb out of any financial slump.
This book is perfect for entrepreneurs who have a hard time managing personal finances and want a natural approach to becoming financially happy with their money.
There is nothing quite like it because of the depth that I go in to about emotions and money. It’s very practically and really helps you get in touch with yourself and not just your money.
It’s good to read straight through and then go back as you feel needed.
I like the idea that your emotions are behind your behaviors and to understand that there are no good or bad emotions. They are just emotions and habits and whatever those habits are they can change.
If you read the book and do the exercises I can promise you that your ideas about money and yourself are going to change and improve because your money is really an extension of who you are. If you want to change your money there is an awful lot that has to change internally.
The book is structures in to two parts. The first is preparation for financial change and the second part is working towards a new financial identity. You can’t just dive in and expect to change your life very quickly and dramatically and not have resistance.
Exercise one is conditioning yourself for change and the idea is to be able to recognize the discomfort that comes with change so you don’t give up and walk backwards. Then there is developing financial awareness which is about overcoming financial vagueness syndrome. The idea is to become more financially aware and not to be afraid at looking at your numbers. Exercise three is identifying financial patterns and underlying emotional themes. There is a chart in that exercise which outlines what I call the five main feelings that people act out through their money. These five feelings are anger, shame, deprivation, aloneness, and a since of being trapped. So the chart shows you what you are probably feeling underneath the behaviors because the theory in the book is that you create your life stories with emotions as the creative force. So by understanding your emotions you can understand your behaviors and you don’t have to have a good emotional vocabulary in order to do what I talk about in the book. The fourth exercise is setting attainable goals. A lot of people will set goals that are so far beyond what the position they are in now and it paralyzes them and they wind up doing nothing.
In the second part, which is the healing part, exercise five is replacing unproductive financial thoughts. This helps you look at the voices you hear in your head and what you believe about money. Exercise six is adopting functional financial beliefs. There is a great chart in this chapter where it shows the beliefs that are holding you back and ones that are going to work instead. Exercise seven is cultivating healthy money feelings. Once you learn to recognize these feelings that are behind your money you need to learn what to do to change the programing in your brain. Exercise eight is establishing responsible behaviors and includes how you have to adapt to these behaviors. The final exercise is improving your relationship with yourself and others which is about connecting and learning to trust yourself.
NOTE: That was just a summary. To get the full deep dive, play the audio clip at 03:56
“Money represents the energy of relationship and the way individuals handle money reflects how they deal with their relationships with themselves and others.” – Joan Sotkin
I started out in life on the lower end, I had two very successful brothers and I could barely make it. I was sick emotionally, financially, and it’s been a journey. I love to share what I’ve learned along the way and I’ve been on the internet since 1995 doing just that.
I really like sharing what I learned and I saw that a lot of financial books were either heavy on the mindset piece or they were very hardcore how to count your money and handle cash flow books. I wanted something that combined both because that’s what I saw had to be done.
Be Here Now by Ram Dass
The Power of Now by Eckhart Tolle
Buy Build Your Money Muscles by Joan Sotkin on Amazon today
Visit ProsperityPlace.com to learn more about Joan and her podcast
Follow Joan Sotkin on Facebook and Twitter
Download the full transcript here (coming soon)
Listen on iTunes, Stitcher , and SoundCloud
Related books:
The Financially Savvy Entrepreneur by Emily Chase Smith
Live Richer Challenge by Tiffany Aliche
From Worry to Wealthy by Chellie Campbell
Relevant advice and tips:
5 Personal Wealth Management Tips For Financial Stability
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The post A Preview of Build Your Money Muscles with Joan Sotkin appeared first on The Entrepreneurs Library.
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