According to millionaire and bestselling author Philip J. Müller, the reason you won't get rich is because of your own idea of what it means to be rich.
In his book Goldrichtig (German for "right money"), Muller claims that anyone who learns to think like a rich man can become a millionaire.
Audiences are taught that the stereotypical "rich" in movies and TV shows are people who spend a lot of money and that their success is based on luck and fame.
According to Mueller, the reality is different. Becoming a real millionaire means developing a conscious consumer mentality. Think about whether the thing you are buying is what you really want, and if you need it, what else is cheaper?
Saving money, staying out of debt, and curbing your impulses are just a few of the steps you need to take to develop your mindset to become truly wealthy.
Müller shared the secret to getting rich with GQ Germany.
1. The basics are savings
Mueller recommends getting into the habit of saving immediately and using it wherever you are.
"It's like wondering if you want to buy a fifth pair of sneakers now. You feel like you're going to need them all of a sudden, but often you only wear them once," he said.
It is a conflict between short-term and long-term gratification. First, you probably have a hard time understanding that you can always save money. For example, Mueller is fundamentally against eating out.
"A lot of people don't realize how much they can save by bringing lunch and drinks to work," he said.
A cup of coffee at the store costs about $3, while brewing coffee at home costs about 30 cents, Muller said.
We have to take these ideas step by step. There are many ways to save money in everyday life. For example, it would be a good idea to check the monthly fees for Spotify and Netflix.
2. Never go into debt under any circumstances
Unlike saving, don't go into debt under any circumstances? Don't buy it if you can't afford it. This is a simple rule that helps prevent impulse purchases.
"I want a smartphone, but I can't afford one? So don't buy one," Muller said. We often go into debt when we are addicted to the temporary joys of shopping.
“If you put a note in your wallet asking: Do you really need this? you will ask yourself this question in time. You won't need that note in time. deaf," explains Muller.
3. If you are in debt, don't avoid reality
Before you start looking for a quick way to pay off your debt, it's important to understand your current situation.
Otherwise, you may end up making the mistake of taking on new debt to pay off the accumulated debt.
Mueller says you should write down all the debt you have. Next, he said, he should think about how much he can afford to pay each month, and based on that figure, calculate how many months it will take him to pay it off.
Mueller recommends using half of your disposable income to pay off debt and save the rest.
Many people advise you to start saving only after you pay it off. However, Mueller disagrees.
"It's about thinking like a rich person," he says. "No matter how much you save, wealth grows with you," he added.
4. Actively contact creditors
Mr. Mueller advised you to take the initiative to contact your creditors before they contact you.
"That puts you in a different position than other borrowers," Muller said. Even if you can't pay, it's better to contact them proactively than to wait for them to get a reminder asking why you haven't paid.
He explains that if you are honest with them about your financial situation, they will respond in the form of a counter-offer, such as delaying the repayment period or waiving interest.
This advice is even more important if you are borrowing money from someone you know. "When you owe someone, it negatively affects your life. Money is not just a medium of exchange. It is energy in motion."
5. Don't use fake status symbol
When you think of millionaires, you probably think of them in fancy cars and sports watches that seem to be more valuable than their homes.
These status symbols are not tied to the millionaire mentality. The path to financial freedom lies in conscious consumption, not mass waste.
"Do you really need to spend two or three months' salary to go on vacation somewhere far away when there are better places nearby?" Mueller said.
6. Exercise self-control and beware of temptation
Each person has a different form of temptation. If you lose your temper during the sale, don't hang out in front of all the shops!
If you have a bad habit of online shopping, you can use an application that temporarily blocks access to online stores.
Instead of inventing solutions to the temporary feeling of temptation, we should look for other ways. If your cell phone isn't working, consider getting it repaired before buying a new one. Alternatively, you can buy or borrow a used one from a friend.
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