Summary

The article outlines four mindset shifts essential for building wealth, emphasizing long-term investment strategies over short-term gains and the importance of self-competition, consumer insights, emotional resilience, and choosing the right financial path.

Abstract

The article "4 Wealth Building Mindsets You Need To Know To Be Financially Successful" argues that while accumulating wealth is straightforward, the challenge lies in adopting the right mindset and staying the course. It suggests that investors should focus on competing with themselves rather than market professionals, invest in companies with products they believe in, and be prepared to endure the emotional ups and downs of the market. The author emphasizes the advantage of being a patient investor, the value of consumer insights in identifying investment opportunities, and the necessity of paying the emotional price for potential life-changing returns. Lastly, the article advises readers to choose the financial game that aligns with their personal goals and strengths, whether it be long-term investing or entrepreneurship for faster wealth accumulation.

Opinions

The author posits that the human tendency towards instant gratification is a significant barrier to wealth accumulation, with many investors preferring short-term wins over long-term success.
Competing with Wall Street professionals is seen as unnecessary and stressful for the average investor, who has the advantage of patience and consumer insight.
Investors are encouraged to invest in companies they interact with daily and whose future vision aligns with their own, suggesting a dollar-cost averaging approach for better results.
The article suggests that the true price of achieving significant market returns includes emotional fortitude, consistency, and the ability to ignore external advice and short-term market fluctuations.
The author believes that different financial goals may require different strategies, such as entrepreneurship for rapid wealth creation versus long-term investing for sustained wealth growth.
The author encourages readers to subscribe to their email list and support them by buying a cup of coffee or using their Medium affiliate link, indicating a preference for direct reader engagement and support.
A disclaimer notes that the article is for informational purposes and not financial advice, urging readers to consult professionals for major financial decisions.

4 Wealth Building Mindsets You Need To Know To Be Financially Successful

Accumulating wealth is damn simple. Difficult is to pick a path and walk on it.

Photo by Obi — @pixel6propix on Unsplash

Who wants to take responsibility? No one! So, I will blame it on our ancestors for being greedy and seeking instant gratification.

Because of them, our brain still prefers short-term wins over long-term triumphs.

This human behavior is the root cause of thousands of investors choosing to stay poor over getting rich slowly.

So, what is the cure for this curse? How can you break it? Make 4 mindsets shifts to be free from this curse.

1. What do you prefer; Compete with sophisticated bots or yourself?

You compete with Wall Street's wolves when you trade every hour, day, or week.

It doesn't mean you cannot win. But whether it is worth the stress and the risk to compete in the first place.

What if you can be successful in the stock market without competing with them. Would you like to give it a chance?

If yes, then try these steps:

Invest in the companies building the future world you want to live in.

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Invest in these companies a fixed amount every month irrespective of the short-term nuances.
Leave your investment for at least 5 years.

Sounds simple, right! But, it's not easy.

You need to compete with yourself to follow these simple steps. You have to win over the "instant gratification" mindset you inherited.

2. Why does it not make sense to compete with the Wall Street professionals?

Here are a few odds against you:

It's the job of the people on Wall Street to trade daily. But it's not yours.
They get paid handsomely to trade daily. You don't
They studied and worked hard to get this job. You didn't.
They might get access to proprietary tools and information to support their trading decisions. You won't.

The good news is that you can turn these odds in your favor.

#1 The Wall Street professionals have the mandate and pressure to trade daily, but you don't.

It's the most undervalued advantage you got over them.

You can wait and watch for years if a stock goes 30% down. No one will bother you other than you.

But, that's not the case for people on Wall Street. They have to do something fast about a stock in their portfolio going down.

Thus, you have the power to wait and watch.

#2 They don't know what you know

Fantastic products surround us all. You interact with them at home, at work, and on the road.

You, as a consumer, are the first to know about an upcoming game changer in your industry.

For example, if you work at a supermarket, you will be the first to notice the product selling like crazy.

Likewise, if you are a software engineer, you will be exploring the latest development tools.

The point I am trying to make here is. Once you come across a great product, find the company producing it and invest in it.

Hence, when your kids use your credit card to buy the Halloween Roblox package. You better use your credit card to purchase the shares of Roblox.

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3. Not everyone has what it takes to pay the price of life-changing market returns

Nothing in life comes free. You have to pay the price for everything you want.

It is easier to pay the price with a price tag. But unfortunately, life-changing market returns do not come with a price tag.

It makes it challenging for the investors to understand the price they have to pay.

So, here is the price tag:

Price of the emotional rollercoaster as the stock market moves up and down in the short term.
Price of keeping your sanity during the bear market.
Price of stop listening to the stock advice of news channels, friends, and relatives.
Price of being consistent in investing a fixed amount every month.
The highest price is waiting for the result for at least 5 years.

It is not easy to pay this price. And if you are not ready to pay it, do not expect the results.

4. Play the right game

You cannot hit a home run in football. This is because the game doesn't allow it. So, if you want to hit home runs, play baseball instead of football.

The same applies to your financial goals.

If you aim to get rich fast, be an entrepreneur and create value. It is the only way to accumulate immense wealth in a short time.

You cannot create a million-dollar stock portfolio in 1 year. It is a process that takes time.

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So, it all boils down to

What are your goals, preferences, and strengths? Then, based on them, pick the right game.

Accumulating wealth is not rocket science. It is damn simple. Difficult is to pick a path and walk on it.

I hope you enjoyed reading this article. If yes, subscribe to my email list to receive an email when I publish a new juicy article.

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This article is for informational purposes only, it should not be considered financial, tax, or legal advice. Consult a financial professional before making any major financial decisions.