10 Apr How to Develop a Financially Successful Mindset
How to Develop a Financially Successful Mindset
Planning for your financial future and ensuring that you have financial security can feel like a bit of a wild ride sometimes, especially these days with the economic turbulence we’re all experiencing. So, having a healthy, positive money mindset while avoiding the trappings of a scarcity mindset is a good first action step in setting yourself up to have a solid financial mindset going forward.
There are lots of highs and lows in all areas of your life at any given time, but those that don’t have concrete financial planning and the right mindset in achieving their long-term goals will have a trickier time reaching their full potential.
Having the Right Money Mindset
At the end of the day, you really don’t know if your financial decisions will get you to your money goals. That is why having the right money mindset is important. If you are coming from a place of fear, scarcity, and lack then trusting that you will have financial success may be hard work. Everyone makes financial mistakes at some point, but it will be the positive mindset that moves you through to understand that there is no reward without some level of risk.
Personal development experts and others have studied the habits of successful people and have found that your subconscious mind and your mindset combined with a positive financial focus will account for roughly 80% to 90% of your success.
That’s pretty amazing right? Yes, only 10%-20% of your success comes from your knowledge. The rest is your state of mind. So how do you cultivate to become a successful person who will incorporate the good habits in the long run that fosters your investing success?
This article will share ideas on how to have and cultivate a financially successful mindset. Some of these ideas may seem a bit strange, but they can absolutely have a positive impact on your financial goals.
Make Your Dreams and Wishes Physically Visible
You hear stories all of the time about someone with extraordinary business success only to have them lose everything but then a short time later rebuild better and faster than ever. That’s because they didn’t let negative thoughts and negative emotions dictate their future.
I know of one real estate investor who had over $50 million dollars in assets and lost it all in the Great Recession. He was able to rebuild his fortune because of his positive fixed mindset and the use of what is called a vision board.
I personally have created vision boards for years. They absolutely work in helping you stay focused on your objectives and goals. The reason is that when you create a vision board, the reticular activating system in your brain is activated when you are cutting out pictures and putting them on a poster board. Sounds a little crazy but your subconscious mind will start moving you toward those people, places, and things that you identified as being important and something that you want.
A vision board is a constant reminder visually of what you are trying to achieve, which helps you to conceive those very things in your life.
Use Your (Potential) Pain As A Tool
Intentional journaling can help you achieve your life goals by keeping you focused on making better choices. This is very powerful goal-setting exercise.
So, let’s dig in as to how this works.
Set a timer/phone for 10 minutes, grab a couple sheets of paper and a pencil. Use these 10 minutes to do a brain dump of your biggest goals and aspirations and jot those down on one piece of paper. Just write down what comes to mind, don’t overthink it. Write these ideas down as quickly as possible. Fill your paper with every place you want to go and all of the things you want to do, and the most expensive things you want to own, and all of the amazing ways you want to make a difference in your life. Nothing is crazy and nothing is impossible. Just write.
Next step, when your time is up, underline the most important overall goal, then circle the top three goals that you want to achieve in the next year. On the other sheet of paper write these four items down with lots of space between the ideas.
Now, again, set the timer for 10 minutes. What you will do in this step is write a brief paragraph underneath goal and WHY you must (not want) but must achieve it. Knowing your “why” is as important as any other aspect of this exercise, so think hard on your “why”. Put all of your emotion into this exercise as you write.
When the 10 minutes is up, set the timer one final time for another 10 minutes. Under each of those paragraphs, write down the terrible feelings or possibilities that may occur if you don’t achieve these objectives. You’ll want to detail the painful feelings you might experience if you fail at these goals and what that might mean for you in your life and for the the life of your family.
People naturally move away from pain more than they move toward pleasure. People make decisions based on emotion oftentimes because they perceive the decision as helping them in some way to avoid pain. This technique is powerful because, by focusing on pain points to motivate you, you will want to work toward alleviating any anticipated suffering.
Make Your Dreams a Reality by Verbalizing Them
By verbalizing your goals you will develop a growth mindset. Your family members may think you’re a little nutty but that’s alright. The results will speak for themselves. When you verbalize your goals out loud and with conviction and emotion and truly believe that you achieve them, the you will be much more likely to reach your objectives.
Another way to incorporate a more positive mindset is whenever you find yourself saying “can’t” or “won’t” or find yourself not having the confidence in being able to achieve something. Turn it around and say something like: “I am grateful for the opportunity to be able to learn and develop these new skills”.
It can be difficult to think in a positive way all of the time, of course, but the best way to approach changing your mindset is to notice when you have limiting beliefs and use exercises such as these to turn that around. Also, you can begin talking as though you have already attained your goals. This will make a big difference in your goal setting as well.
Implement A Gratitude Practice
Gratitude is fundamentally at the core of virtually every achievement you pursue. You can practice gratitude for all of the success you have had in your life to this point (even if you’re not where you want to be), all of the wonderful experiences you have had in your life, and for all of the achievements that you will accomplish in the future.
You can do a gratitude practice through meditation by taking 5-10 minutes every day to close your eyes and sit in silence. Then thank the universe for all of the amazing things you can do every day, for your health, for everything you have, and all of the wonderful people that you love who are in your life. You can also journal your gratitude as another way to acknowledge your appreciation.
Investing in Real Estate Syndications
Investing in multifamily real estate syndications can give you positive financial results for your investment portfolio with less financial risks than some other investment vehicles.
But investing in anything can mean that people have to move out of their comfort zone and start taking on the personal responsibility of learning how to improve their financial health. The first step is to understand that every single investment strategy requires some level of risk in exchange for the possibility of improving your financial situation.
You should always conduct your due diligence on any potential investment. You will want to understand the real estate market where the syndication is located. What the returns are going to be and how long your capital will be invested. You will want to review the track record of the operators who are managing the real estate syndication so that you can be informed about the level of risk that you will be investing in.
It may seem like there is a lot to learn about investing in real estate syndications, but as with any sound investment it takes understanding the risks and rewards as much as possible up front before you dive in.
You can learn more about investing in real estate syndications here.
Allow the Universe to Return The Favor
What does this have to do with investing in commercial real estate syndications and financial freedom? Well, when you have these new habits and are cultivating a mindset of success, have clear goals and the “why” behind those goals, and you practice gratitude exercises, then the energy you are putting out to the universe flows to you and assists you in achieving your goals.
This might sound sort of “out there”, but there is so much information to substantiate that the key to your life is simply right between your ears. How we think and what we think about and focus on grows and compounds. So, no matter crazy this may sound, just try it for a while and see if this can help you build the life you are seeking for yourself and your family.
Just a small change that you implement in your mindset here and there can make a huge impact on your personal finances.
So, for example, maybe you work toward earning and saving an extra $50,000 a year to invest into a stable, cash-flowing multifamily real estate syndication each year so that you can build your net worth. Begin with your end goal and start developing habits that will help you achieve it.
Follow the steps of practicing gratitude, and conduct this powerful 30-minute goal-setting exercise. Get crystal clear on your goals and your “why”. Make sure to verbalize your goals and objectives. Create a vision board, go in with an open mind and an open heart, and see what develops. You might just be really pleasantly surprised.
Note: we are not financial advisors and are not offering financial advice of any kind. Please consult with your advisors before making any investment or financial decisions.
Ready to Learn More?
The best way for you to learn more about commercial real estate syndications is to join the PCRP Passive Investor Club.
Through the PCRP Passive Investor Club, you’ll get a priority review of all the deals we offer. We’ll work with you to determine your investing goals and then present you with the best deals to meet those goals. We’ll then guide you every step of the way as you invest in those deals.
So if you’re ready to start investing passively in institutional-grade, commercial real estate in fast-growing, climate-resilient markets in the U.S., join the PCRP Passive Investor Club – IT’S FREE! – and get started on your path to EARN PASSIVELY and LIVE ABUNDANTLY!
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