In Part 1 of ‘Six Ways to Obtain a Money Mindset' I gave you three steps to help you develop a money mindset. Part 2 will cover three additional steps to help you conquer your money mentality.

4. Obtain Knowledge/Become Your Own Money Expert- Financial literacy entrepreneur, John Hope Bryant, once said, “If you don’t know better, you can’t do better”. Most of us probably did not grow up discussing money management at the dinner table and we definitely did not learn it in school, therefore, we must go out and seek this knowledge. Having a financial advisor or planner can be a great idea but it is critical that you are well versed in personal finance as well. I have too often had situations where an advisor or financial expert gave me advice that would have been detrimental to other areas of my finances. Often these experts specialize in one specific area and do not know the effect that their advice can have on other aspects of your finances for which they do not have expertise. For example, an estate planning attorney recommended that I create an LLC for one of my rental properties. What he did not tell me was that doing so would trigger the ‘Due on Sale Clause’ of my mortgage which would require me to pay my home loan in full. That one piece of advice could have ruined me. Fortunately, I had read a book earlier that week which explained the advantages and disadvantages of putting rental properties in LLCs and I was able to educate the attorney and tell him why using his advice would not be suitable for me.

Understanding investments, real estate, market trends and how the economy works is essential for growing and maintaining wealth. Tackle one topic at a time. Start with the one you are most interested in learning and begin to build a solid foundation of knowledge. The following are great ways to get started.

a. Read Everything That You Can- There are numerous financial resources available. If you are a beginner, start with something basic like ‘Personal Finance for Dummies’. You can also read financial newspapers such as The Wall Street Journal and magazines like Fortune, Forbes, and Black Enterprise.

b. Listen to Podcasts- This is my favorite way to learn about personal finance. There are podcasts that cover a range of topics including credit repair, investing in the stock market, entrepreneurship, real estate, budgeting, and more. You name it, you can probably find a podcast on it. My personal favorites are Side Hustle Pro, Paychecks and Balances, Apartment Building Investing, Suze Orman Women and Money, The Dave Ramsey Show, and Stacks in the City.

c. Take a Class- This is how I began my journey to financial independence and it was worth every penny. I took Dave Ramsey’s Financial Peace University course. There are tons of great courses on sites like Skillshare.com and Udemy.com.

d. Tap into Your Network-Surround yourself with wealthy people and/or people who are actively striving to pursue wealth. Utilize the knowledge from your circle of influence – successful friends, family and church members, your boss. These people will give you the knowledge, accountability, and momentum to achieve financial success. Additionally, their lessons learned will help you to avoid costly mistakes.

5. Know That Money Allows You to Live a Life of Purpose and Freedom. Imagine a life where you can make a living pursuing your passions. A life where you can roll out of the bed at whatever time that you like and decide on a whim how you would like to spend your day. Monday you may wake up and decide to send a few business emails and go volunteer at a local charity. Tuesday you may spend writing Chapter 1 of your novel and Wednesday you close a multi-million-dollar real estate deal. Thursday you sleep in and later prepare a healthy breakfast for your family and then head out for a hot yoga class. Friday you go play golf in the morning and in the afternoon, you work on your passion project that may or may not make you money but you do not care because you love doing it and it gives you purpose!

6. Realize A Dollar Spent Today Can Grow to Much More in the Future. People with a financial literate mindset are typically frugal. They detest overspending and opt to invest their money rather than spend it. A well-rounded or diverse portfolio can grow to be worth more partially due to compound interest. Compound interest basically means that you earn interest on your interest! I will elaborate more on this in a future blog post but it is a powerful concept that can greatly strengthen your finances.

Six Ways to Obtain a Money Mindset Part 2