How to Develop a Wealth-Building Mindset

You can have all the financial wisdom ever known. Yet, it is still no guarantee you'll achieve your financial goals and build wealth as you define it.

Knowledge isn’t always an effective antidote for our emotions. Therefore, to put that knowledge into action it helps to have the right mindset.

In my latest article for Kiplinger, I wrote about how you can develop a wealth-building mindset. One of the greatest athletes of all time provides a lot insight on the power of your mindset:

For an extraordinary high achiever, such as NBA legend Michael Jordan, you could reasonably attribute his success to one of many things. His famous work ethic. His high basketball IQ. His shoes. But to His Airness himself, it was the result of a relentless mindset:

"I've missed more than 9,000 shots in my career. I've lost almost 300 games. Twenty-six times, I've been trusted to take the game-winning shot and missed. I've failed over and over and over again in my life. And that is why I succeed."

Jordan acknowledges that he’s had his roadblocks along the way. "Everybody has had them. But obstacles don't have to stop you. If you run into a wall, don't turn around and give up. Figure out how to climb it, go through it, or work around it."

Mindset is a valuable tool in all areas of life. It can make a greater difference in your finances than you may realize:

When you think about what it takes to become financially successful, what comes to mind? A smart investment strategy? Sure. The discipline to spend less than you earn? Definitely. A high-paying job? Certainly helpful. But one thing you may not have thought about — and that is often overlooked — is a Jordan-like mindset. That doesn’t mean the determination to become the greatest investor of all time, but rather, the desire to consistently improve.

In essence, to build wealth, you need the right mindset … a wealthy mindset. In her bestselling book, Mindset: The New Psychology of Success, Stanford psychologist Carol Dweck identifies two basic mindsets: fixed and growth.

In the rest of the article, I explore how each mindset can specifically impact your financial life, along with ways to develop a growth mindset and bring your dreams and goals within reach.

Read it here: Can You Think Your Way to Wealth?