This is an article that about the mindset that you must have in order to achieve financial freedom. If you want to achieve financial freedom or want to have a better financial future, then you cannot miss this article.
If you ever read any personal development, self help or financial books before, you will find that mindset is one of the main topics that are discussed in the book. This is because our mindset is the basic that determines how we take action, what we believe and what kind of targets we will set. This is very important for us to achieve something in any subjects.
We need different kind of positive mindsets for different goals that we set. This is why every expert will talk about the mindset that you need in their books. They want to ensure you have the correct mindset to achieve what you really want.
The condition is same with achieving financial freedom. If you want to be financial free or have a good financial future, then you must find out what is the correct mindset that will help you to achieve it.. Change your mind, change your will and Change your Life.
What are the Mindsets that You Need to Achieve Financial Freedom
So without further ado, let me show you some of the mindsets that you must have if you want to achieve financial freedom. Every one of them is crucial in the journey to financial freedom:
- EQ and FQ are as important as IQ. All of us know what IQ is. This is very important for us to gain knowledge and learn something. This is important in information age today. However, in the world of personal finance, EQ(Emotion Quotient) and FQ(Financial Quotient) are also important. EQ is about our emotion intelligence and how we control our emotion and react on each emotion such as fear, worry, angers and communication skills. This is very important for business owners and investors. FQ is also important and it is about our financial literacy. This is about how we manage our money, how to invest and financial planning. As you can guess, you need financial knowledge to manage your money in profitable way. So start from today, you can start reading some books about emotion intelligence and personal finance books.
- Failure is good, making mistakes is even great. How we learn? I believe we learn the most from our failures and mistakes. However, I found that today’s education system has changed our mindset that failure is bad, making mistakes should be punished. This already blocks the way we take actions unconsciously. In school, we also learn the skill of analysis, so we tend to analysis every possible before taking action because we afraid of fail and make mistakes. If you pay attention on this, most highly educated people is hard to take action because they afraid they will make mistakes. However, if we never take any actions, we won’t go anywhere but only just stay the same and keep dreaming our goal. Now if you know that you want to achieve financial freedom or have a better financial future, please adapt this mindset and stand up. Dare to fail, dare to win.
- Taking Risks. Afraid of taking risks is the biggest obstacles for us to achieve financial freedom. Every investment in this world has some risks and usually the returns of the investment are depending on how risky it is. Highest risks equals to more returns. I’m not saying that we simply take some risks and make money. I usually call this gambling instead of investing. Before we take risks, we must know how to handle the risks and minimize it to the minimum level. This is how the rich invests. They learn the games of investing and play accordingly. For example, you invest in stock market, you must understand the risks return ratio, exit strategy and strategy to handle all the unexpected factors. This is why I said FQ is important as it will help you here.
- Buy Assets to support your liabilities. Here I would like to use Rich Dad’s advice to define what assets and liabilities are. Assets are something that brings money to our pocket while liabilities will take money out of it. So your goal is always buy assets before your liabilities. For example, you dream to buy a luxurious house for your family. So you should find a few rental properties, so that you can build up a positive cashflow from them to support your luxurious house’s expenses. Always buy assets to support your liabilities. Assets first, liabilities last.
- Always Think Long term. Achieving financial freedom is a long term goal and long journey for your life. So you must think long term too. In fact, thinking long term means you consider and visualize the consequences each time you do something. For example, today you buy a few real estate books and want to read it. This may increase your expenses on your bills and you seem don’t receive anything from it. However, if you look for long term, these education materials will train your brain and help you to generate massive of money in future. Today you lost money, however, it may make your money in future. However there are some kinds of people who cannot accept this kind of mindset. So just think long term each time you spend your money or even spend your time to do something.
- Think Big instead of small. Let me ask you a question, why think small? Thinking won’t cost us any money or hard works so there are no reasons why we should block ourselves from thinking big. So you should think big but take small steps. This is the way to achieve anything in this world.
- Always learn and ready to change. Our world is changing very fast. In order to survive in this world, we must learn and change fast too. From my observation over the rich and financial free people, I found that they love to learn something and always ready to change according to the market. This make them can survive in any condition or even stand out the crowd and make a lot of money.
Change Your Mind and Change Your Life
Start from today, you can start creating a new truth about yourself and change your mindset to achieve anything. Once your mindset is correct, then everything you do and think will bring you to achieve anything you want to.
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[...] Check it out! While looking through the blogosphere we stumbled on an interesting post today.Here’s a quick excerpt This is an article that about the mindset that you must have in order to achieve financial freedom. If you want to achieve financial freedom or want to have a better financial future, then you cannot miss this article. If you ever read any personal development, self help or financial books before, you will find that mindset is one of the main topics that are discussed in the book. This is because our mindset is the basic that determines how we take action, what we believe and what kind of tar [...]
[...] to Financial Freedom presents Prepare Your Mindset to Achieve Financial Freedom — Mindset can make or break your plan and change your life. Harrison offers some powerful [...]
[...] Prepare Your Mindset to Achieve Financial Freedom [...]
Great article! The one most difficult for our society is “Always Think Long term”.
Friday when I run down the articles I most enjoyed from the Carnival of Personal Finance #127, I plan to provide a link to yours.
Best Wishes,
D4L
“Always think long term.” I like that statement. I recently made a major career change out of high tech and into Math and blogging. I made lots of $$ in high tech but I was burning out. Right now I make little $$ but I’m much happier.
It’s a great reminder to think long-term because the blogging income isn’t there yet. But it will be.
Thanks for writing this.
Harrison, I agree that so much of personal finance involves our mindset. Unfortunately, changing long-ingrained thought patterns is one of the hardest things to do. People often need a catalyst, like a health crisis, to motivate them.
Instead of waiting for a catastrophe, I recommend that people read radical books like “Your Money or Your Life.” Things like this can really help people re-frame how they look at the world.
I agree that you must start with the mind,and change your present conditioned mindset to that of one set on the goals related to being successful in a field,be it financial or whatever.But I strongly believe many of us FIRST; need to STOP: and ask ourselves: “What exactly is it I want to do? (or be successful in?)”. Then; differentiate whether we are simply ‘interested’,or merely ‘curious’.By finding what we are truly passionate about,we’ll then discover drive & motivation will follow.
I am a procrastinator,and have tried to apply many of the so called ‘gurus’ techniques,but for me they never seem to work.
So I’ve decided to strive for a formula that I created and works for me FIRST,before I try to teach it to others.
Hi Hannam, thanks for your ideas. You really have some brilliant points in your words.