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Neighbors FCU


Becoming Wealthy: Adopting the Money Mindset For Personal Gain - Thursday, August 1, 2013

Have you ever day-dreamed about winning the lottery or inheriting a fortune?  What would you do? Would you take a big vacation, throw fantastic parties, and buy a luxurious mansion and car?  Or would you immediately set up an appointment with a financial planner and make an investment and spending plan?  Although financial planning may not be your idea of celebrating, it would mean that you’ll have money for the long haul.

Whether you make a fortune quickly or manage a paycheck, your spending and saving behavior will ultimately determine your financial success.

Get rich quick? Think again:
Gaining wealth usually doesn’t happen "overnight” and if you spend everything you make, wealth will continually evade you.  Did you know that almost half of all lottery winners blow through their millions in less than five years and that 78% of NFL players are bankrupt or broke within 2 years of retirement? 

The secret to building wealth:
Regardless of income, wealth can only happen when you maximize earnings while living on less than you make.  Wealth is about managing money and avoiding common spending traps which including debt, not saving money for years (especially the early years,) and spending money on "stuff”.  The key to changing today’s paycheck into tomorrow’s money pile is to make saving a priority while carefully considering purchases.

Where the money goes:
Track you spending by keeping receipts for all purchases during a one month period.  Receipts will detail exactly how much you spent and what items you bought, so when you add them up you’ll know exactly where your money goes.   Wealth might be evading you just dollars at a time; seemingly insignificant purchases add up and could be the determining factor between living paycheck to paycheck or actually saving money.

The money mindset:
Wealth seekers are motivated by the best return on their investment.  Money-makers are driven by achievement and regularly work more than eight hours a day.  They see opportunity for more; they are focused and understand how money is tied to their goal achievement. 

Wealthy habits:
Wealthy people view spending as "good” or "bad” investments while making savings a priority.  Finding investment tools which can improve your financial bottom line, especially through compound interest is a great way to start.  Find a licensed investment professional to evaluate your situation and advise you on investments.

Check out our financial workshops which are free and open to the community, so bring a friend!