5 Ways Financially Successful People Think Differently

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5 Ways Financially Successful People Think Differently

by | Read Full Article at BiggerPockets.com

Those accomplishing high levels of success think differently. Successful, wealthy people have distinctly different beliefs that separate them and their finances from everyone else. What are some of those mindsets and beliefs? Here’s a few I have picked up from studying these individuals.

5 Ways Financially Successful People Think Differently

1. They see challenges as problems to be solved.

One of the most distinguishing characteristics and mindsets of the successful is how they perceive challenges. The winners simply ask how they can overcome them and get what they want. The poverty mindset just says, “I can’t afford it” or gets stuck in the victim mentality. That negative mindset is often self-fulfilling and leads to being stuck or starting on a downward spiral. If your  goal is to acquire 1,000 multifamily units by 2019, then your job is to simply enough solve problems in order to achieve it.

2. They don’t wait for luck, but work consistently instead.

Most unsuccessful people believe only a select few can be wealthy or that all wealthy and successful people are just lucky or were born rich or with the right connections. The data shows that very few rich people are actually trust fund babies. They generally are self-made. Those who are wealthy and successful at what they do are that way because they believe they control their very own destiny. It is just a matter of putting in the work. They make their own luck through consistent work, day in and day out.

3. They have an abundance mindset.

The unsuccessful think there is not enough money to go around, while the wealthy believe there is an abundance of opportunity and money to go around. The poverty mindset is one of scarcity, where one believes that in order to get something, that something has to be taken from others. The wealthy and highly successful CEOs of great startups believe in creating value and filling gaps where there are needs or inefficiencies. This can be a huge factor in real estate. If an investor believes there are not enough deals in their market or that the market is too hot, then they will not put in the work to market to find deals and build their portfolio. 

4. They understand the difference between smart leverage and bad debt.

The successful don’t take on draining and burdensome personal debt that costs them every month. They do use smart leverage, non-recourse loans, and partnerships to accomplish more than they could alone. They use these tactics to invest first and then let their returns pay for their luxuries. The poor mentality is to chase instant gratification and ego by mounting up expensive personal borrowing, which makes things cost more and often leaves nothing to invest. Others refuse to use any type of leverage and find it almost impossible to get ahead financially or in business.

5. They understand the value of diversification.

Many are holding out for that winning lottery ticket that they believe is their only chance to get ahead. They blow every available dollar on lottery tickets and scratch-offs—all despite the measly odds of winning. They are almost ensuring they stay broke with these habits. Even if they win, that money is typically lost very quickly because the mindset is not there. Some even do this with business and investments. They bet it all on one hope. The wealthy understand the value in diversifying and steady growth. They put their money into more investments and take fewer risks.

by | Read Full Article at BiggerPockets.com