Six Ways to Obtain a Money Mindset Part 1
Your money mindset is the feelings and thoughts you subconsciously develop towards money from your life experiences. Because our thoughts often control our actions, our money mindset can create barriers between us and financial freedom. I cannot stress how important it is to obtain a money mindset. People often want to skip this step but will NEVER achieve financial independence if they do not embrace this concept. As ambitious career women climbing the corporate ladder, we have a plan for our career goals. We are grinding, working nights and weekends, attending networking events, developing side hustles and going back to school to further our education and professional development. #IwillsleepwhenIdie #hustleharder #noglassceilings #whoruntheworld #everydaywehustling. So why do we not have a plan for the money that we are working so hard for?
In this two-part series, I will cover six steps to help you gain the proper money mentality. Below are the first three steps to help you change your mentality on money so that you can get on the path to financial freedom this month.
1. Be Content With What You Have
Being content can literally make you rich! This one tip had a significant impact on my finances. We are constantly bombarded with advertisements telling us that we need the latest and greatest. Americans feel the need to “keep up with Joneses” and buy bigger houses, flashier cars, and the latest technology. We are told that we need to spend large sums of money dining out (my temptation). We believe that we are doing better than someone else because we are driving a Benz and they are driving a Toyota. We think that having a designer bag makes us look successful. I once heard Reverend Al Sharpton refer to such items as “diamond studded shackles”.
The exhilaration of these purchases is usually temporary, leaving us in more debt, leading to more stress. I am not saying to never purchase luxurious high price items, but perhaps delay gratification until you have achieved financial independence. Instead of buying that expensive bag or car, consider buying stock in those companies and growing your money instead of watching it disappear. Learning to be content is a constant battle against our selfish desires. Being happy with what you have takes dedication and continuous reminders of the blessings in your life. Weekly I am reminding myself that I already have more than I need and that there are people in the world with far less than me but who still have all of their needs met and have achieved financial freedom.
2. Realize the Importance of Building Generational Wealth- Break the cycle of living paycheck to paycheck and build a legacy. When you die, what will you have to pass on to the next generation? Hopefully it is more than cars (which are depreciating assets), handbags, and shoes. Will you have liquid assets, real estate, business interests, life insurance, stocks, royalties, or trademarks? Imagine what your children’s and grandchildren’s lives would be like if you left them six figures or more in assets. They could receive a top- notch education, open businesses, buy property, and make other investments. The sky would be the limit.
According to The Atlantic, “Among college-educated black families, about 13 percent get an inheritance of more than $10,000, as opposed to about 41 percent of white, college-educated families. White families that receive such an inheritance receive, on average, more than $150,000 from the previous generation, whereas that figure is less than $40,000 for black families. The average family inheritance to a white college grad can pay off the average undergrad debt balance—more than $30,000—and have enough left over for a 20 percent down [payment] on a $575,000 home.” Obviously, there are reasons other than lack of personal discipline that led to black families not having generational wealth (i.e. slavery, Jim Crow, mass incarceration, and other oppressive policies) that will be discussed in a future blog post. But the point is that we can begin now and create a head start for future generations.
In Jay-Z’s song, Legacy, he raps, "Generational wealth, that's the key. My parents ain't have s--- so that shift started with me”, discussing his stake in Roc Nation and his plans to leave a piece of the company to his children. According to Forbes, Roc Nation has over $906 million worth of contracts under management and it is a business that has expanded beyond managing recording artists and into sports and investments in startups. Jay-Z is building multiple revenue streams and acquiring assets that he can pass down to his children and his children’s children. You do not have to be a celebrity or have a seven-figure income to begin establishing a legacy for your family. Ordinary people break the cycle all of the time and you can to. Be the first to begin the path to wealth in your family.
3. Realize That Wealth is Possible- This sounds really fundamental but most people do not believe that wealth is achievable. Prior to 2017, I believed that the only way for me to achieve wealth was to win the lottery, marry someone rich, or have a great business idea that would profit me millions. Building wealth is 80% behavior and 20% knowledge. If you develop the right mindset and habits you can absolutely achieve wealth.