Wealth-building Secret #1: Spend Fearlessly
So, you want to be wealthy, right?! Of course you do. We all do. There is absolutely nothing wrong with that. In fact, I think it one of the highest virtues and highest aims you can have in life. Why do I say that? Because only when your own needs and desires are abundantly met can you truly direct your full energy and resources to helping others do the same. This is often overlooked in our society. But, I digress. Back to the topic at hand. This blog’s objective is to teach you how to start thinking like a wealthy person. I believe, and have witnessed firsthand, a set of wealth-building secrets and I’m going to start sharing them. The first one, and the one we will focus on in this blog, is to spend fearlessly.
Say what?!?! I’m telling you that if you want to get rich and begin building wealth, you must spend more?! It seems counterintuitive, right?! And it is. That’s the point.
Most of the population isn’t rich. In fact, most of the population doesn’t have enough saved to last more than a month or two without a job. Crazy, huh? So, to become wealthy you have to go against the grain and do exactly the opposite of what most people are doing. This includes the way you think about money. That’s the starting point. This blog will teach you the mindset you must develop to become wealthy, but more importantly, it will teach you to change your spending habits. To become wealthy you must act as though you already are, which includes spending fearlessly!
I’ve always been obsessed with wealth. I’ve spent countless hours reading, studying and talking to people to figure out the great secrets that could help me become wealthy. I’ve always had a strange fascination with finding answering to questions, such as:
1) What do wealthy people do differently from average people?
2) How does a wealthy person think?
3) What is a wealthy person’s relationship with money?
This has been my obsession for more than a decade now. It was accelerated dramatically when I spent 4 years as a financial advisor. This gave me access to tons of financially successful people. I spent countless hours with wealthy people and got to witness their “secrets” firsthand. What surprised me most, was the fact that everything they did, seemed the opposite of what I would have guessed. (I’ll dive deeper into that in a minute…)
…Now, before I go any further, I want to address the word, “wealth” and what it means. I know, I know, it seems like such a subjective term, right? Or is it?
I think it is in some respects, but I want us all to agree on a definition of wealth. We all see wealth differently and that’s ok. We all have different backgrounds and a different vision for the future. Maybe wealth, to you, is a scene from “Wolf of Wall Street”, where Jordan Belfort is boarding his private helicopter about to lift off of his yacht in the Caribbean. That’s got to be wealth, right? Or maybe it’s spending hundreds of thousands of dollars on dinner, like Belfort was doing regularly [ridiculous, right?], surely that’s wealth…
If this is what you envision as wealth, then I would agree with you [to an extent]. Lavishness is certainly an (aspect) of wealth. People who have developed a confidence with respect to money are much more likely to spend fearlessly, which is a great secret to wealth-building. But, spending fearlessly can’t come from a position of recklessness, it has to come from a position of strength and unwavering faith (more on this in a moment).
Many people equate wealth to money, but they are not necessarily synonymous. So, my question to you is:
Can you be wealthy without money?
You obviously can be broke without money.
But, what does being “broke” really mean?
Let me pose the question differently:
Can you be broke WITH money?
The answers are: yes, it’s a mindset, and yes, respectively.
Wealth is a mindset
Wealth is a mindset. To become wealthy, you have to think wealthy. You have to exclusively entertain thoughts of wealth, abundance and prosperity. That has been my discovery, which has been confirmed by virtually every financially successful person I’ve ever met or studied.
Wealth, simply put, is a creation of the mind. You can literally trace every great fortune to a specific idea (excluding monarchical expropriation or any sort of wealth attained by force). The origin of every great fortune began in somebody’s mind, with a simple idea and the execution of it. Every great fortune accomplished a very similar feat, simply making life easier or better for somebody (or lots of people). Every great fortune provided value to the world. Knowing that, to achieve a greater status of wealth, you must simply provide more value to the world. That’s it.
Now, being the salesman I’ve always been, I am always anticipating objections. You might say that some people have become “wealthy” without really providing value to the world (cough, cough, Paris Hilton, cough). Yes, you’re correct in saying that some people have inherited “wealth”, or have obtained it by force or through some sort of expropriation. But, I would argue that anyone who attained unearned riches, whether by force or by inheritance, obtained money, not wealth by my definition.
This proves that money is not wealth. You can possess a lot of money without providing a lot of real value to the world. You can be born into great riches simply as a function of great financial planning and wealth transfer, not necessarily personal responsibility. Now, if somebody receives a large inheritance and multiplies it many times over, they have proven themselves worthy of the fortune they received, but I digress (again).
So you can have money and not be wealthy. I know what you’re thinking – BUT, HOW?!
Think about the lottery winners of the world. They obtained money by chance, they didn’t earn it. What usually happens to them? Well, most of them are worse off financially less than 18 months after their big payday.
Wealth, being a mindset, is a lot like an ATM. Imagine having an ATM in your living room that gave you a license to print money, whenever you needed it, or more importantly (wanted it). Perfect. That would be sweet, but unfortunately, those don’t exist. Well, that’s probably a lie. I’m sure they do, just not legally. And let’s try to avoid going to jail, like I talked about in this blog: Embezzlement, Ponzi Schemes, and hiding wealth from the Feds.
So, jail is bad and wealth is good. We’ve established that, but I said I was going to be teaching you how to actually build wealth. I’m getting there…..I promise.
So let’s review, wealth is a mindset. To take that a step further, I would describe wealth as an emotion, or better yet, a state of consciousness.
Wealth is exactly that. It is a feeling that can be taught. It’s a very specific way of performing your daily rituals. It’s a lens through which you view the world. It’s an opportunistic mindset.
People who are “wealthy”, especially by my definition, never fear loss.
They never fear running out of money. Ever. Never, ever, ever, EVER.
They know, with 100% certainty, that they have the ability to go out in the world and provide real and substantial value (i.e. make someone’s life easier or better). Which, in return, attracts compensation. This works for me and it works for you. I believe that in direct proportion to the amount of value you provide, you shall be compensated. (That sounds borderline Shakespearean!)
The truth is that the world is constantly seeking equilibrium, or balance. When you go out and provide value to somebody, you create an imbalance in the world. The world, in return, seeks to adjust that imbalance through some form of compensation. This is how wealthy people are always finding ways to get paid. They are constantly tipping the scales in their direction. They go out of their way to provide value to everybody they meet, in some way, shape or form.
That leads me (finally) to the first real wealth-building secret that I want to expose, which is to spend fearlessly!
Wealth can only be achieved by learning to spend fearlessly
This means that you never get buyers’ remorse. You never regret spending money. You pay for your friends’ meals. You buy whatever you need. In fact, you buy whatever you want. You are never afraid of your supply running out. You have an internal self-confidence that understands the principles that exist in the world.
Helen Wilmans, author of Conquest of Poverty, says, “I would not be afraid to spend the last dollar I possess in property or money, for I know that more would come to me.” This is a state of fearlessness that must be achieved to become wealthy. It’s absolutely imperative.
So many people curtail expenses, wondering where their next paycheck is coming from, especially when something goes wrong, but this is simply a form of “small thinking”.
It’s also the exact opposite of what you SHOULD do!
It’s sometimes unavoidable that thoughts of limitation and poverty will creep into your mind, especially depending on the relationship you have had with money in the past, but if you notice these thoughts surfacing, squash them. Don’t entertain them. Replace them immediately with thoughts of wealth and abundance.
To build great wealth, you have to spend your money without an ounce of fear. You have to believe that wealth is constantly finding you, from a variety of sources. You have to believe that you are a huge asset to the world. If you are continuously putting value into the world, it is impossible to not become wealthy. The more value you put out there, the more compensation you will be awarded.
This is the key to earning great fortunes.
This is one thing that wealthy people unanimously do. They splurge. They live lavishly. They live a life of abundance. They are never afraid of spending a little bit more for something they truly desire. So, if you truly want to become wealthy, this is something you absolutely have to master.
Quick Warning: There is a big difference between spending fearlessly and spending indiscriminately. The difference is, once again, in the mindset. If you are spending money that you don’t have to escape reality, or in unproductive ways, especially if you’re living well beyond your means (like most Americans), this will only create a serious delay in becoming wealthy. However, if you are unafraid of spending (i.e. spending fearlessly) and you have developed a powerful mindset that is full of faith, constantly scanning your present environment for opportunities and truly behaving responsibly with respect to your finances, your wealth-building will be accelerated dramatically. [End Rant]
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