Money mindset is not magic. It doesn't mean that if you tell yourself every day you're going to get rich and visualize a bag of money, you'll be a millionaire in a year. It is rather the other way around: without a good money mindset, you will, in any case, not become a millionaire.
This is what stops you from getting rich:
1. “You have to work a lot to get rich.”
If you think you have to work a lot to get rich and don't feel like it, you will never get rich. Good news: you don't necessarily have to work a lot to get rich. Depending on what your definition of rich is, of course! But people like Ilona Annema prove that you can earn an excellent income by working two days a week. If working a lot always meant getting rich, all Asian rice workers were longtime millionaires…
2. “Talking about money is taboo.”
Don't you dare to talk about money? Don't you think it's chic? Or do you think it's nobody's business what you deserve? This can also be an obstacle to earn more. If you see money as something negative, you often don't have a good money mindset. I spoke about it with Blanca Vergara, the money mindset mentor. For a better money mindset, she recommends talking about money. Lucky me, I never have a problem with that!
3. “As a freelancer, you don't earn much.”
When you give in to something, you actually give up. This negative self-fulfilling prophecy ensures that it will never happen. People who are convinced that they can never earn much as a freelancer (or any profession) will never do so. News flash: you can also earn well as a freelancer! A specialized freelancer with an hourly rate of 75 euros and 20 billable hours per week already has a turnover of 6,000 euros per month. Increase your hourly rate or productivity, and you'll be at a ton per year in no time. In addition, I believe in growing. Just because you're a freelancer now doesn't mean you'll be forever.
4. “Money Doesn't Make You Happy.”
We sometimes seem to think we have to choose between getting rich or getting happy. And because money doesn't buy happiness, we don't want to focus on that. We prefer to focus on the things that really make you happy. That is, of course, also very good. But why choose? Why can't you both lead a loving life and earn a lot of money? Moreover, it has often been shown that a certain income level does indeed make you (more) happy. Money means options, comfort, freedom. Once you earn well, doubling your income will no longer have a major effect on your happiness level.
5. “Investing is scary and risky.”
There are, of course, more ways to build wealth, but investing (on the stock market) is one of the best-known ways. Investing is also one of the scariest ways. Unjustified! The unknown makes unloved, shall we say. History shows that investing in the stock market always yields returns in the long term. The AEX is growing by an average of 7% per year. Investing in an ETF (bundle of shares) of the AEX, therefore, seems a good option for the long term. The longer you invest and the more diversification, the less risk. Also, read the tips from Blondes Invest Better.
6. “A second home is fiscally inconvenient.”
Real estate is a smart investment. Just like your shares on the stock market, real estate always becomes worth more in the long term. And even if the value remains the same, you build up capital by paying off your mortgage. Unlike a first home, you cannot get a mortgage interest deduction for a second home. You pay tax on a second home in box 3: capital. That comes down to 30% of the (fictitious) return on equity: so the value of the home minus the mortgage debt. I don't see why this would be fiscally inconvenient. A second home provides capital growth. Paying taxes is part of it. That's what it's about! It will give you more than it costs you.
7. “Paying off a mortgage is fiscally inconvenient.”
Some people do not pay off their mortgage and therefore continue to pay interest on the outstanding debt because they can then deduct that interest. As a result, they pay less tax. However, paying off a mortgage lowers your costs. So you lose less money every month. Anyway, the mortgage interest deduction is not interested not to get rich. Even if you are rich, you can, of course, keep a small mortgage to continue to use the favorable deduction. Read more about paying off your mortgage here.
8. “I spend too much.”
Renée Lamboo calls this lifestyle inflation. Well, if you keep spending everything that comes in, you'll never build wealth. Then you will always have to keep working, even if you start earning more. That is precisely the danger of earning more. It is better to earn more and continue to spend the same. You then use the extra money to build up capital, for example, by paying off your mortgage, investing, or buying a second home. I don't think spending too much is an excuse not to get rich. Do something about it!
9. “Money-making is greedy and superficial.”
Surely there is more than making money? Isn't wanting to get rich very superficial? Well, of course, there is more to life. But it is not surprising that you would like to earn more money? As I said, money brings a lot of freedom. It simply gives you more freedom of choice and options. You can do very nice things with that, also for others. If you continue to think badly about making money, you can reread the interview with Blanca.
10. “I'm too late to get rich.”
Afraid you missed the boat? That you're too old to get rich? Then check out this article. Anyone who starts investing at 30 and invests 548 euros each month can still be a millionaire at 65. A return of 7% per year is assumed. Jeff Bezos, the richest man in the world, did not become a millionaire until he was 33. Ray Kroc sold milkshake machines before buying McDonald's at age 52. It's never too late. Don't let that stop you.
11. “Making a lot (more) money is not sexy as a woman.”
One of the stupidest comments I've ever heard. And not just from women themselves. I've also heard men say they don't want their wives to earn more. Then I think: why not? How nice is a financially independent woman? This kind of a man feels especially threatened by (successful) women and derives their ego from supporting their wives. Not my cup of tea. It's 2021, folks! And women: start taking yourself seriously .
12. “I am not an entrepreneur.”
Admittedly, the richest people in the world are entrepreneurs. As an employee, you quickly reach a ceiling. Your salary can't double next year. As an entrepreneur, anything is possible. The sky's the limit. However, not everyone is a born entrepreneur. But you can learn it. Take a course, read books, drink coffee with people who are ahead of you. Most importantly, try it. Only by doing will you learn to do business. You learn the most from mistakes. A true entrepreneur is a doer, so take that first step!
13. “I'd rather do work that I like.”
The brother of "money doesn't buy happiness." Why choose? You can also earn good money doing work that you enjoy. I feel like many people use "nice work" as an excuse as to why they don't earn well. “Yes, but I really like my job.” so what? As if you can only get rich with terrible work! Get rid of that limiting belief! Nice work is a good motivation to get to work every day. However, remain critical of certain activities. Does it also deliver? If not, you should consider it a hobby and focus your business on the things that do pay off (and are also fun).
14. “Customers don't pay me a higher rate.”
Nonsense! Have you tried it yet? If you find it exciting to increase your hourly rate, you can always try it with new customers. They don't know your old rate! In addition: with more experience, you can achieve faster results at the same time. Logically, your hourly rate is higher. You can explain this or 'obscure it' by charging a fixed rate for a certain product or service. Are your customers really not paying anymore? Then it's time to look for new customers! In any case, your customers do not have to be why you will never get rich.
15. "I don't need a lot of money."
This one falls into the 'keep yourself small' category. Just because you don't need a lot of money doesn't mean you can't make a lot of money. You don't have to spend it all 😉 It's only good not to spend everything you earn. Invest everything you have left in wealth building. Then it gets tough.
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