It’s probably no surprise that the top reason people don’t build wealth for themselves is a lack of money.
What many people don’t understand is that you have a lot more power to increase your supply of money than you may realize.
There are many aspects to money management that can increase the flow of money into your life. Today I’m diving into 5 strategies I’ve found can make a big difference in your wallet when you focus on them and commit to bringing them into reality.
As a reminder, you can read all sorts of great ideas people are espousing (like I am here) but if you don’t take action, the time you spend reading gets wasted. Be sure to take notes and decide what you can begin working on right away (not even waiting until tomorrow to start), sound good?
Okay, let’s dive in…
Here are my 5 proven strategies for building wealth: (inspired by my book, The Mindful Millionaire):
#1. Having a consistent and reliable income stream.
Like I already said, if you don’t have a reliable stream of income, you’re going to struggle to build wealth for yourself. To get started, you must set yourself up with stepping stones for deciding how to create more in the way of income.
Increasing your income doesn’t happen overnight for most people. Contrary to what your social media feed often espouses, life is not filled with instant success stories. Instead the reality is that it takes time to increase your income. Sometimes years.
To start it is helpful to know that making more money often requires changes in the way you’re thinking about it. Especially if you’re trying to shift out of dwelling on difficult situations from the past. In those cases, your lizard brain is on heightened alert which causes you to focus on staying safe rather than making steps towards turning things around.
One way I love to help my clients increase their income is to set some type of challenge for what they want to create. I’ve witnessed miracles from using this approach. That’s because establishing a challenge with a target in mind causes them to get out of their own way and do something. It also forces them to move through difficulties and mishaps without giving up too easily.
Another way you can get focused is to brainstorm on all the ways to generate more money in the next 30, 60 or 90 days.
To do this exercise, you can write down 50 or even 100 ideas for ways to increase your income. Then sit with what you’ve written to see what bubbles to the top of your list so you can pick a few and run with them. Chance are you’ll be pleasantly surprised at what happens especially if you can stick with it and see it through UNTIL you reach your goal.
What’s more important than anything is to not give up — don’t stop until you get what you most want! Okay? Okay!
#2. Investing in yourself
For many people mindset is what keeps them stuck in place without feeling like other possibilities exist. Our mindset comes from the collection of beliefs, feelings and past experiences that cause us to think a certain way about ourselves. These thoughts can either be growth oriented or fixed. Dr. Carol Dweck researched growth and fixed mindsets and found that when you have a growth mindset, you are far more likely to achieve the goals you set for yourself.
Funny enough that when we believe that anything is possible, we have a tendency to try things that many people would see as impossible. While it doesn’t always lead to success, there are plenty of situations where people who had little chance of succeeding were able to change the world just by believing in possibility. The story about Mark Zuckerberg starting Facebook in his college dorm room comes to mind.
Shifting one’s mindset comes down to realizing the potential you have available to you which often requires shifting your mindset from focusing on what you cannot do to what you can do.
To change your mind, it is important to tune into the positive energy surrounding your life and not the limiting beliefs holding you back. Thinking about what can be done rather than what cannot be done. Considering and committing to seeing beyond your challenges rather than stewing inside of those challenges. Asking for help when you need it and not relying on limited beliefs to guide your decisions.
An idea you can play with is to create a simple T-chart on a piece of paper. On the left side write down what you don’t think is possible and on the right side you write its opposite, turning the statement from an impossibility to a possibility through the practice of creative choice. Next you can review what you’ve written and come up with ideas for how you can take action on the possibilities regardless of what you were accustomed to believe in the past. You could even see this as a game you are playing with yourself.
From there you can journal about the reasons why your beliefs on the left are no longer acceptable and agreeable to you. Exploring all the reasons why you are ready to invest in yourself and your possibilities going forward.
#3. Saving 15% of your income
Let’s kick this one off by admitting that this goal of saving 15% of your income may be upsetting to you. Especially if it feels like saving that much is completely unreasonable. I get it. I also get how frustrating it may be if you haven’t saved much in the past either.
Now that we have that out of the way, let’s face it — you can only do what you can do right now. Worrying about money often makes it worse and prevents you from taking action.
So instead how about we agree that saving money is a goal but first you may have to make some changes in your life that we’ve explored in #1 and #2 and that is fine. Take your time to get to the place where you can save more money and you’ll be glad you did.
So if you think you could save more, and, as such, are ready to make the commitment then let’s consider what you can do next.
I’m honest about not being a great saver, if it happens great, but mostly it is because saving money on its own doesn’t excite me.
Yet, when I invest in a project then I get excited about directing my money towards said project. This is how I have conditioned myself to want to save money and it has paid off big time.
How about you?
Is there a way you can become a better saver by selecting goals or projects you want to complete in the future that can help you feel more excited about focusing on savings? This is a great topic to journal further about…
The best thing I can suggest here is to affirm your “Why” for saving more money. Even if you can’t save much, target your goal for savings at least 15%. From there take steps every week to move in that direction. Invest your time in reading about saving money and paying off debt. It will pay off when you stick to it.
Find the opportunity to talk to friends and family about what they are doing (or have done) to achieve their financial goals. Join a group where the focus is on better money management practices and community support.
You get the idea, you need to keep this goal front and center to be able to keep moving towards what you most want.
#4. Being well-paid for your contributions
A great way to figure out if you are well-paid for your contributions in your career, at work or in your business is to do some research. These days it isn’t too hard to figure out what others are earning in your field of expertise. Indeed.com is a great place to research jobs and pay. Another is to consider joining a mastermind group with business owners so you can learn about what others in your field are earning.
As you do more research, there is a strong likelihood that you will discover things you never considered before. Many people avoid doing this research because they are afraid to find out they are being paid less than others. Don’t let this deter you from doing the research and figuring out where you stand. This process is also likely to cause you to ask questions of yourself and others that help you to increase your future earnings.
I detest it when people talk about being paid your worth. Stop it! That isn’t a good way to describe the situation at all… you are worth way more than any amount of money, it simply isn’t about that.
Instead what you are paid is about the value you are creating in the marketplace for your employer or for your clients. To be cler, value creation is what you are paid for in pretty much all jobs and businesses and the more you learn about your value in the marketplace, the higher you will likely be paid.
Which means this takes time as it often requires growing your expertise. The good news is that as we build skills that offer great value to the marketplace, we can and will be rewarded for it.
Also don’t be afraid to say “no” to things that don’t work for you or tasks that are given to people that have no direct impact on the bottom line.
Choose how you spend your time wisely, it is the most precious resource. The more conscious you are about your time in the workplace, the better able you are to be paid for your value and contributions.
#5. Delegating instead of abdicating financial responsibility
Finally as you begin to build your wealth, it is important to know what you want to do with your money. Asking yourself about the ways you’d like to invest and then learning about how to do it in a way that best suits you.
Before you hand over responsibility (to others) to manage your money, be sure you understand your choices and decisions. This prevents you falling prey to others who don’t have your best interests at heart.
Be involved with your money, even if it is just to ask lots of questions of your advisors including your tax accountant, your financial advisor and your insurance broker or agent. The better informed you are, the better client you are for the advisors you most want to work with. Work as a team with your financial partners so that everyone can learn together to help you build wealth in ways that most work for you.
I’ll wrap up by sharing that when you focus your awareness on building wealth, you can create beautiful effects and shifts in your life.
It is worth every bit of time invested because it is about way more than the money, it is about how you show up to life and the empowerment that comes by knowing that anything important to you can be brought into reality.
You can do this!
The concepts explored in this article are featured in The Mindful Millionaire and if you were inspired by reading this, that would be a great next step. Here’s the link to get you copy right away.
If you’ve enjoyed this article, then you’d enjoy other things I share with my community. A great next step is to take my Money and Chakras quiz where you’ll learn more about yourself and your relationship with money (plus receive several cool gifts!)