Wealth creation: The right money mindset you need to master

The right money mindset you need to master for wealth creation. PHOTO | POOL

As we settle into a new year, the desire to create and accumulate wealth is often a top priority for career persons and entrepreneurs alike.

While professionals look forward to promotions or pay raises, budding entrepreneurs dream of business prosperity.

That said, having the right money mindset is one area that most young people are yet to master. Being a combination of thinking and working, wealth is first created in the mind.

As a result, our way of thinking can sometimes hinder our ability to create wealth. Therefore, how do you adjust your frame of mind to achieve the financial freedom that you desire?

Begin by assuming the attitude of gratitude. Look around you and appreciate the intangibles like your health, and skills, as well as the wealth that you already have. It is from this point that you can begin leveraging these to your advantage.

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Rule of thumb

Secondly, are you the kind of person who eats to finish? If so, you are one among many.

Research shows that only 12 percent of the population has an established savings culture. To create wealth, one must nurture the attitude of saving and investing.

The rule of thumb is to use 50percent of your income on needs, and save 20percent while 30 percent goes to luxuries.

From these savings, you can work towards various goals such as home ownership and retirement.

Thirdly, you must also learn the art of taking calculated risks as it is part of an entrepreneur’s life. Wealthy people are not afraid to take risks but they do not dive in foolishly.

They weigh the risk versus rewards to determine the worthiness of any course. Sometimes they fail (severally) but like billionaire Mark Cuban says, you only need to be right once.

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Finally, mind your time management. As the saying goes – time is money. Hence, instead of watching endless TV series or football leagues, use your time and creativity to learn about ways to maximise each shilling through investing.

You could also consider adding something new to your life in 2023 to make a difference. Possibly learn a new skill that will put you in the arena of increase.

Angeline is the manager, of Business Development and Training at Enwealth Financial Services.