Have you ever dreamed of having all the money you could want so that you could buy a nice car or a large house — or even just pay for college?
The goal is to get rich — and fast — because that is where true independence comes from. I agree that being financially stable (and successful) gives you the type of independence many people your age can only dream of.
But are you setting the right goals to get there?
You could be one of two people: those who think getting rich is child’s play or those who think getting rich is almost impossible.
As someone who’s been through it all, I can tell you right now — it’s neither. But the real question is if becoming rich is what you really want.
As someone who was once where you are, I’ve too often heard people use the word “rich” to describe something else: wealth.
Yes, I know — those two sound the same. A thesaurus would show these two words as synonyms. So, what difference does it make in which word you use?
What It Means to Be Rich
Let’s get one thing out of the way: Being rich means having money — lots of it. It means having enough money to fulfill all your wants and needs — and then some. And that is the same as having wealth.
The difference between being rich or wealthy isn’t about your bank account balance. And it’s not about the number of cars you own or how big your house is.
It’s about how you approach the matter of money. Do you have a get-rich mindset or a wealth mindset? Being rich is about focusing your life around the idea of having more money.
Wealth is about building your life from a place of financial security.
Someone who has set a goal to become rich is likely focused on only certain aspects of finances, including:
● Ways to make more money
● Increasing their collection of assets (buying cars, houses, or art)
● Seeing it as a means to fulfill their desires
Being rich would mean you could finally afford all the things you couldn’t have before. You could buy the most expensive jewelry, shop at top-tier brands, and indulge in the luxuries of life that your newfound money can now help you get. There is nothing wrong with this.
After all, becoming rich affords us the peace of mind of never needing to worry about bills, the price of groceries, or how we will manage our budget for the next month.
Now, you are in that period of life where you can buy things without checking the price tag. And that’s all well and good. But is it really a worthwhile end goal? Is your long-term purpose in life only to amass enough money to buy everything you have ever wanted? At this moment in life, your answer to that question might be yes.
At your age, I would’ve answered the same. Since I am about to counter this belief, let’s discuss where the get-rich mindset might lead you astray.
The Limitations of Being Rich
A long-running study by Harvard Medical School finally provided something in the way of a concrete answer to the age-old question: Does money make you happy?
The study (which followed over 700 individuals from their teen years into their retirement) uncovered which factors seemed to make those people the happiest (Solan, 2017).
It turns out their money only went so far in creating happiness. While it gave them a certain level of comfort in life (and we all wish for that), what made them happy was their lifelong connections, their interests and hobbies, and the people they loved (Solan, 2017).
But getting rich is not a pointless goal. As I mentioned, we all wish for comfort and financial independence — leading a healthy lifestyle is important. But focusing only on becoming rich means you will always be concerned about what will make you more money and how you should spend the money you already have.
This mindset means you will constantly look for ways to make — and spend — money. Rather than set other goals to help you progress in life in other ways, your life could start revolving exclusively around money (leaving no room for any other priorities).
A wealth mindset differs from a get-rich mindset based on what people who have it focus on. Their goals are less about gaining money and more about increasing their quality of life and building experiences, connections, and achievements.
So, how does a wealth mindset help you achieve more in life, and how does it result in greater happiness?
Not Everything Is About Being Rich
Having financial wealth and the comforts it affords is possible. However, when you make getting rich your main goal, you lose sight of what life is about.
That is not to say financial success shouldn’t be one of your goals. It absolutely should — being financially comfortable in life opens up many more opportunities for you. But never make it your only goal.
Not everything in life is about becoming rich. There are many other worthwhile pursuits in life, and your goal should always be to make your passions and dreams come true.
What other things should you look to do rather than focusing exclusively on making money? There is no shortage of goals, but some may include:
Giving Back to the World
If you’ve got enough wealth built up, why not give some back? We understand the privileges and chances we have been given in this world are not equal.
Even in today’s world, with self-driving cars and artificial intelligence, some people struggle to meet their basic needs.
Giving back doesn’t necessarily mean giving away your money. You can also help others by teaching your skills or passing on the lessons you’ve learned in life. Having a “help others” mindset is always worth it.
Following Your Dreams
Maybe you’ve always wanted to be an artist painting the heavenly scenery of Rome or a photographer capturing people’s lives as they went about their business.
Whatever your dreams, financial stability will help you achieve them. Rather than lose your focus in life to stock up on wealth, focus on pursuing your passions.
Follow your dreams — for no reason other than that they make you happy. Not everything needs to have a financial or economic goal.
Some things in life should be done for the sake of fulfillment. And nothing creates happiness quite like doing that thing you’ve always wanted to do but never could — until now.
Make getting rich a passive goal. As you live your life, focus on the things that make you happy and bring you peace. Try to build your life around them — not just for your sake, but to spread some joy in the world as well.
The Wealth Mindset
I know that right now, you’re wondering: If I have money, why shouldn’t I consider spending it? What’s wrong with planning new sources of active income? There’s nothing wrong with that. But it can cause you to lose sight of other goals in life — ones that should matter as much as amassing riches.
How is the wealth mindset different in this regard? It starts with building up your financial assets, but it doesn’t just stop there. It’s not just about making money; it’s about developing habits and hobbies that help you achieve and succeed in life.
A mindset focused on wealth — and not just riches — finds value in the money you have. It’s less about spending and more about spending wisely.
Understanding money management and making responsible financial decisions is essential for a wealth mindset. You don’t earn to spend; you earn to build yourself up and pass on wealth to your future generations.
That is something of a crazy concept to think about right now. When you are young, it’s hard to imagine your future generations and what you need to do for them.
The thing is, however, that now is the time to think about it. The later in life you start thinking about your future, the harder it becomes to plan for. Being young, you can start fresh and map out how you want your life to go.
What does financial fulfillment mean? You won’t have to worry about money. And you won’t have to wonder how you will pay your bills or put food on the table.
It starts and ends with the understanding that money is only the means to an end — not one’s entire life. Once you have achieved financial comfort, you can move on to other things.
Focusing on being fulfilled in life is where your greatest success comes from. Create a comfortable yet happy life for yourself, one that helps you fulfill your dreams and achieve those milestones most important to you.
Surround yourself with loved ones who care about you, not your bank balance.
Becoming wealthy isn’t difficult. Sure, it requires some effort. But once you’ve developed the right mindset, everything else comes easily. All you really need to begin your journey to wealth is to:
● Invest in your financial education .
● Set your goals by planning for your future.
● Develop new, healthy financial habits.
● Create a long-term mindset.
● Use strategic planning to get there.
So, how do you develop a wealth mindset? And how does it influence your approach toward money? Let’s take a look:
Set Your Goals
Let’s face it — you won’t get rich overnight. No matter how many get-rich-quick schemes you see online, I am here to tell you that it does not work that way.
Getting rich requires time and effort. And most importantly, it requires your dedication to sticking to the plan and putting in all the effort you need to make it work.
What are your financial goals? Consider what kind of life you want to have in the next ten years. Would you like to help your family? Would you like to be able to pay for college or go to the best university? Would you like to travel the world or perhaps live in another country?
You need to set goals because they will keep you motivated. They will help you to stick to your plan (even when you are tempted, for example, to buy those expensive sneakers).
Resisting temptation will become easier because you know where you want to go — and those costly sneakers won’t help you get there.
Invest in Your Future
How you spend your money now affects how well you will do financially in your later years. Any investment that helps you grow your wealth is an investment in yourself (in the long run).
These investments include your typical investments on the stock exchange, but there are other types of investments.
Putting yourself through college to increase your knowledge is also investing in yourself. And this type of investment is even more important while you’re still in college.
When you enter college, you will have a competitive advantage that very few achieve at this age.
I will discuss financial investment options in more detail later on. Right now, all you need to understand is that wealth is about reaching a stage where you earn an income without needing to work for it constantly.
That is what investments help you achieve. And they’re not something you should leave for when you’re in your 40s — the time to invest is now.
Stay Positive
Getting rich takes work and patience. And that work can sometimes take a toll on us. You might (at one point) start wondering if it’s even worth it.
The key to maintaining your wealth mindset is to remain positive. Review your goals anytime you start having second thoughts (and map out your progress if you have to).
For example, compare how much you had planned on saving by the end of the year and how much you already have.
This practice will help you map your progress and realize you are achieving something. The going might be slow, but keeping a positive mindset will help you stay on track.
Build New Habits
As you work toward building yourself up financially, look to create habits that help you achieve this goal. The first step is to be grateful for what you already have.
If you cannot develop gratitude, no wealth you achieve will ever be enough for you.
Once are happy with what you have, you can start setting more responsible goals.
At the same time, consider developing a delayed gratification response to your achievements. Rather than thinking in the short term (that is, wanting something right now that will give you immediate happiness), make long-term investments that will pay over the years rather than in days or weeks.
Finally, cultivate discipline in managing your money. This means avoiding unnecessary debt and making responsible decisions about credit card usage.
By paying your bills on time, you can avoid falling into unnecessary debt and maintain a good credit score that will help in the future.
Create the Life You Really Want
You might think being born rich or poor makes a difference in the opportunities you will have and what you can achieve in life.
While being born into wealth or poverty can present individuals with different starting points and initial advantages or disadvantages, it does not determine their ultimate potential or what they can achieve in life.
The kind of life you want for yourself — and the type of life you create — is entirely up to you. Decide what you want to do with your life and how you want to do it.
You can become bitter and angry about all the luxuries of life you don’t have. Or you can be grateful for what you have been given and try to build a positive life focused on helping others as much as yourself.
A healthy, positive mindset includes the following beliefs:
● Making something of your life is in your hands.
● It is your responsibility to follow your dreams and be who you have always wanted to be.
● Where you come from does not matter. All that should matter is where you are going.
So, will you take advantage of your opportunities or pine away for the ones you wish you’d had? None of us are dealt a perfect hand — almost everyone you know struggles in life in one way or another.
When you wish for someone else’s life, you end up wishing for all the troubles and challenges they must face.
Let go of what you believe you deserve and start earning for your future. Make a dream — and set your heart on following it no matter what.
If you’re resolute in your goals, it doesn’t matter if you went to a private or public school, a state college, or an Ivy League school. Only those who are committed to their lives succeed.
Forget about the constant hustle for money you see online. It can bring you riches but not life satisfaction. Look to create the life you have always wanted.
While it is important to have money, don’t make it your only goal in life. Even as one of your goals, seek to put it to some productive use rather than just collecting newer cars and vacation homes.
Believe me, money can only get you so far. After that, all you will have left are the things you have done in life — and the things you haven’t done.
Don’t leave room for any regrets just because you got lost chasing the dollar.
Looking Ahead
Being rich is a mindset that only focuses on gaining more money throughout your life. There is nothing wrong with wanting to build your wealth.
But that goal should be accompanied by other dreams. Use the wealth you build to give back to society in any way you can.
Contribute your skills for its betterment. Engage in philanthropy or just become a source of joy and happiness for those around you.
Don’t make worrying about money your life’s central theme. Focus on building the life you have always wanted. Once you’ve achieved financial comfort, true wealth comes from building your skills, pursuing passions, fulfilling dreams, and achieving personal growth.
Use the opportunities — and the challenges — that life throws your way to become who you always wanted to be (regardless of what anyone has to say about it). It’s your life, after all! So, let’s begin your journey.
To increase your understanding of riches and wealth, I will now discuss the basics of the financial world.
I want to help you develop a basic level of financial literacy that will help you navigate this world when you finally begin making money and setting financial goals.
