Before you can become a Young Money Mogul, you have to first think like one. Wealth is a state of mind, not a state of finances. You could take away a wealthy man’s money today, and tomorrow he would begin to rebuild his empire. You could give millions of dollars today to a man who drifts through life with no aspirations past working to pay his bills, and tomorrow he will be halfway done with squandering his riches and only a week from returning to the job he ‘retired’ from.
In this post, we’re going to talk about how to get your mind right, so you can get your grind right, which will allow you to eventually get your money right. We’ll give you tips and strategies that you can use to your advantage.
Let’s treat wealth like a sport. Or a game. The objective is, obviously, to score as many points as possible before your time expires. Some people start the game with more money, some with less. None of that matters.
Why? Because you are in your current state in life by the people you associate with and the books you read. If you hang around a losing team, you become a loser. If you associate with people that encourage you, that push you to do better, that are true winners, you become a winner.
Someone could start their day off with $5 in their pocket and turn it into $20, while others will complain they only have $5 and buy themselves 5 things off the dollar menu. Both players were dealt the same hand, one just knew how to play the game differently than the other, and that person won.
This sport must be studied constantly. You will have to read and learn from the people who have become successful, who are at in life where you aspire to be. Success leaves clues, and if you study the leaders long enough, you will begin to see them for yourself. And if you see them for long enough, you will begin implementing them into your life.
For every sport, there must be a solid gameplan. One that comes with a successful offensive strategy and/or a successful defensive strategy. We say ‘or’ because if you can figure out offense well enough, you can be decent at defense and still succeed. A football team that can consistently score 60 points per game doesn’t have to worry a whole lot about how many touchdowns it gives up. Similarly, if your car breaks down and it costs $400 to repair, but you have $2,000 in savings, no sweat. However, if your savings account only has $200, you’re in trouble.
Let’s talk about some defensive strategies you can use. Because, in the end, it doesn’t matter how much money you make, it matters how much you keep. Everyone has a cash flow of some sort. This is where we’ll start. Do you know where every dollar of incoming cash goes? You better. Take a break to draw out your finances right now if you don’t. A great free tool you can use is Mint.com to help you keep track of all your bank accounts and credit cards, complete with spending graphs, trends, and data.
If you’re strapped for cash, start slashing the non-necessities. A man with a wealth mentality asks himself every time before he spends any money: What will I get in return for this transaction? For every dollar I spend, how much of it will come back to me? Your morning trips to the coffee shop should become a thing of the past (unless of course, this is where you meet clients). An investor has estimated that for every $1 you spend, there is a potential to see a $5 return in 20 years. So, is that $5 coffee really worth $25 to you? Delayed gratification is one of the best defensive strategies you can implement for yourself.
Other defensive or delayed gratification strategies include downgrading or cutting your cable package, not buying the next generation TV, smartphone, video game console, etc., using coupons and finding discounts on necessary expenses, and budgeting your expenses so that you only spend money on what you can afford in cash. If something needs to be repaired at home, use Google to figure out how to do it yourself (within reason) instead of wasting time and money to have someone else do it.
When deciding whether or not to buy something, go through a system of internal checks and balances. The first question you should ask yourself is, Will I be grateful that I made this purchase 5 years from now? This should help you determine exactly how important and necessary something is to you. The second question you should ask yourself is, Would you suggest someone else purchase the product or service you’re considering buying if they were in your exact financial situation? This will help you remove the emotion from the situation, and make a decision based solely on logic. This defensive strategy is for personal purchases only; purchases for your business are a completely different animal, and we’ll get into that in a different post.
Now, let’s talk about what makes or breaks a competitor in any sport: offensive strategy. Because you can’t save yourself to wealth. Savings provide breathing room and a base to help you expand. If your offensive strategy is only a good defensive strategy a.k.a. save, save, save, you will never become a Young Money Mogul. Let’s say you’re a great saver and put away $20,000/year. It would still take you 50 years to save up $1 million. If you’re like us, your goal isn’t to retire wealthy after you’ve lived out your best years. It’s to live out your best years with enough money to do what you want, when you want, and then some. Money is like air. When you have plenty of it, you don’t even think about it. When there’s a shortage, it becomes priority number 1.
The greatest advice we can give on offense is to think creatively and resourcefully. If you need cash fast, don’t get a loan. Liquidate your assets by selling something you haven’t used in months. Your TV, game console, old watch, old smartphone, vehicle, jewelry, tools, etc. Ask your neighbors if they need any work done around the house. You’ll be surprised at what some of them will say.
If you can wait a few days and have a relatively new vehicle, sign up to drive for Uber, Lyft, or DoorDash. If you are proficient in any skills, tutor some middle school or high school students in your area, or make yourself available on Upwork, an online marketplace for freelancers. If you have a spare couch or bedroom, and can lock your bedroom door, move your valuables into your bedroom and rent that couch or bedroom out on Airbnb. This could be both an offensive and defensive strategy if you are able to cut your rent in half!
The next few suggestions will require a little more planning, creativity, resourcefulness, and business ownership mentality. Get over to Craigslist, Backpages, etc. and find people wanting to pay for work or jobs they need to be completed. You can do the work yourself – or quote the job at a certain hourly rate and hire someone else to do the work at a lower hourly rate while you rinse and repeat with other postings.
On these sites, you can also find items that people give away in the Free section, give them a nice spit shine, and resell those items for 100% profit. Some department stores will have clearance sales for name brand clothing, which you can scoop up and resell online via Amazon, Ebay, Craigslist, etc. at full or slightly marked down prices after the sale ends.
We hope the above information helps you begin to get in the proper mindset for success. Your mind will be the base of your financial wealth. Read at least 15-20 minutes per day. Constantly listen to successful people in your industry, and once that foundation is set, the hustle will become natural, along with the money shortly after. You just have to be patient. While you do have to keep up the grind, this is no easy or overnight process.
We hope you’ve enjoyed our article and if you have any suggestions or tips for someone just starting out, we’d love to hear from you! Please like or comment below.