Not everyone needs to be an extreme investor where you become an expert or guru. Additionally, spending money in moderation is okay. Instead, you should be adopting an investor mindset from the broad sense: to minimize your consumption and increase the production of assets that will help you build wealth.
1. Make it a priority to make changes
If you don’t dedicate time or prioritize breaking the consumer mentality, it’s not going to happen. You are shifting your entire mindset when you want to think like an investor and it’s not something you can passively do and expect results. Like most things in life, you need to want it and willing to work towards your goal.
2. See where all your money is going
As you get started, you must figure out where all your money is currently going. This means making a budget, make use of other personal finance tools, and keep track of money coming in and going out. Without this picture, you’re trying to make changes in the dark. For you to begin the investor mindset, you have to be managing your finances with precision.
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3. Evaluate why you feel the need to consume
You also need to get a good look in the mirror as well and figure out why you feel the need to consume. What feelings does making purchases do for you? How do you feel after? What is the driving force behind any excess consumption? Find the reasoning for your consumer mindset. It may not fix everything, but it can help you understand the “why’s” when you start to evaluate.
4. Focus on what financial goals you may have
If you start making financial goals and focus on making your goals a reality, it can help you shape your investor mindset. Of course, there is no guarantee because your mentality and commitment to your goals has to exist too. But by creating goals, writing them down, and setting a plan in motion, it can help stay the course and focused on them.
5. Start reading investing books
A great way to break the consumer mentality is to start reading some investing and money books. These open your mind and makes it easy to learn about great financial habits. And not all investing books are overly complicated or difficult to read. I think one of the best books to start with is Rich Dad, Poor Dad. A simple, yet informative book that set the groundwork for my shift to an investor mentality.
6. Practice asking yourself questions
You’ll need to begin thinking like an investor and ask yourself some questions when it comes to purchases. This habit won’t happen overnight, but make it a note to practice. What do I mean? Well here are some examples:
- Instead asking, “How much does it cost?” ask “What’s my rate of return?”
- Instead of saying, “I can’t afford to invest” state, “I can’t afford to not invest”
- Instead of saying, “I’ll worry about it later”, state, “I’ll set myself up now, so I don’t have to worry later”
Frugal Living Tips: The Essential Guide To Start Saving Money
People who live frugally aren’t necessarily cheap, they just try to make their dollars stretch as far as possible. Living frugal doesn’t mean that you can’t go out to eat, buy your daily latte, or go out with friends on the weekend.
Read More: Frugal Living Tips: The Essential Guide To Start Saving Money
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If you’ve enjoyed reading our content and are passionate about learning wealth, managing your finances, and achieving financial freedom, we’d love for you to join our community! Click here to follow Invested Wallet for more.