To some, the concept of even talking about money is offensive.
To others, the difference between money and wealth is merely semantics.
In my experience building wealth, helping others to do the same and having the privilege of being around some of the most successful people over the years – there is a very BIG difference
First, let’s make sure we are ok with the concept of money.
Many people were raised to see money as the root of all evil or, at the very least, not something we should be talking about or even thinking about.
Yet, like it or not, money is an enabler.
It gives you the ability to scale contribution. To fuel great ideas. To train, hire and produce great people – impacting their lives forever.
Money gives you options. We all know that when someone else is in control of how we spend our time, our creative energy and our resources – we do CANNOT live to our full potential.
Just like money can scale your great ideas, contribution and your ability to change lives for the better, it also can be used to scale bad things…
This doesn’t mean money is inherently bad, just that bad people can use it to do even worse things.
When you understand it this way, you can have your own POSITIVE relationship with money…knowing it can magnify your mission in life.
Money vs Wealth
Money is currency. It is a one-time exchange in return for value (a product or service for example).
The challenge with a “Money” mindset is a total fixation with making and then using your money…typically this leads to two negatives in the lives who have this mindset:
- Money doesn’t come to who chases it with short-term motivation…in fact the more you chase it, the harder it is to get it – have you ever noticed that?
- Even if you do happen to get it, with a money mindset this is a one-time transaction that inevitably gets spent on the wrong things leading to peaks and valleys or what I like to call the “Lottery Mindset”
Now wealth is more about systems.
Let’s look at a few of the systems that defines a wealthy person.
1. “You Inc.” – Your Self-System
Your ability to continually earn money (a wealth system) is directly related to your own health (mental and physical), your network, your skills and knowledge and your relationship with your market (trust, credibility, how much they like you, proof of your results, etc..).
Wealthy people view themselves as a System…the more you invest (money, time, sacrifice, etc…), the more consistent your achievements will be
If you need help working on YOU…to get you Unstuck, Boost Your Confidence, or just reach the next level – I highly recommend you spend a few hours and work through this system: 4-Part System For Getting Unstuck In Your Life
2. Your Income and Financial System
Wealthy people ALWAYS end up working for themselves.
Even if they were a high-tech guru who earned their money from a big company, eventually they leave and start their own coaching, consulting, investing or other business where the REAL wealth is made (or sometimes lost in the case they do not take this approach).
Here are just a few ways wealthy people view business.
- Type of business…they understand that certain types of businesses scale better than others. Mass appeal, recurring income, focus on wants vs needs, and profit margin ALL come into play
- Systems…Businesses that scale are critical to a wealthy mindset. Franchises, agencies, distributorships, leadership, company structure all come into play here
- It’s about sales, profit, cashflow but it is also about the exit. Great wealth is typically always made on the transition of a business to either a public offer or acquisition. Wealthy entrepreneurs understand that a business should be created that has a chance of exit – not just a sole proprietorship that’s tough to scale and will eventually be shut down as others take over around them
One of the things you WILL find in nearly every one of these superstar, wealthy people is they learn to leverage access to their knowledge. They do that by publishing books, ebooks, online courses, consulting programs, coaching, masterminds and such.
Everyone from Anthony Robbins to Sir Richard Branson offers these types of packages…and so should YOU.
To learn how, go ahead and click on this link so you can have your own Top Selling Digital Program in 30-days or less:
3. Investments
We already established in #1 and #2 that a portion of money should be invested in YOU, and another portion should be invested in your career or business…in addition there are other investments that make sense for most wealthy mindset people
- Real Estate – Multi-family (think apartment complexes), commercial real estate (think Senior’s homes, Storage, trending retail, etc…) are solid investment options that BOTH appreciate in value over time AND pay you a profit to manage the real estate as you go
- The Market – Generally speaking, 6-8% returns are relatively easy to make as an average annual retirn by making smart investments in the market. Sure, this year is a major challenge, but taking 5-10 year averages, this rule holds true and makes a massive difference over someone who spends or saves their money at little or no return
- Venture/Angel Investing – taking 10-15% of your wealth and betting on strategic start up companies, with the right knowledge and ability to read people, is often a very successful wealth management technique
- Taxes – the wealthy are taxed at much higher rates and so often must invest in understanding how to reduce their overall tax load. No matter what you think about this morally, the fact is the wealthy generally do still pay FAR more in taxes than others…but ensuring they pay their regulated amount means they can use more to scale and grow their contribution
What Does All Of This Mean To You?
I understand all of this may seem so much bigger than where you are today.
Here’s the 3 things that are MOST important for you right now:
- You develop a wealth mindset vs a money mindset. You see yourself, your health and your skills as CRITICAL to a lifelong realization of your true wealth potential.
- You begin to view yourself as THE industry. Your end goal MUST be multiple streams of income with as much of that under your control (your own company) as you can. If you are in a job or career you don’t particularly like – what skills can you leverage to start your own side-hustle NOW so you can OWN that business a year from now? THIS is how you begin your wealth mindset
- You become a student of wealth. You learn the best way to structure companies. How to scale a small team. How investing in real estate and the stock market works. How taxes work and how you can structure your business to pay the least tax while still paying your fair share.
When you focus on shifting your mindset from “Money Getting” to a Wealth mindset, suddenly you are no longer chasing money, you are building foundational systems that will deliver value, get things done for your customers and money will be the exchange for the value you provide. Money is the outcome of a wealth mindset – not the ONLY focus.
If you want more help building your own online business income stream by building high-profit digital products that you OWN – head over to 30 Day Digital Product Profit where our focus is NOT just on your first product, but on building your own Wealth-Focused Online Digital Marketing Empire.
