Ready to increase your net worth this year? Believe it or not, improving your finances and building wealth is more about mastering your mindset than anything else. To help you get your mind right, we tapped Tiffany “The Budgetnista” Aliche, the award-winning founder of the Live Richer Challenge and leader of Dream Catchers, a massive group of people who are collectively working toward a better financial life together. In 2014, she initially launched the Live Richer Challenge with a focus on savings. Since then, the challenge has progressed from savings to credit and currently, the 2018 edition focuses on net worth. Below she details a few money mindset tips to boost your income as well as your wealth.
What are three mindset shifts people need to make when it comes to increasing their savings, improving their credit, and increasing their net worth?
- The mindset shift for saving – Many people think of savings as missing out. But to save effectively, you have to switch that mindset from saving is depriving yourself to saving is a reward. Meaning, if you save, you can have more of the things you want.
- The mindset for credit – You have to shift to one of empowerment. People think credit is something that you don’t have control over or once you make a mistake, that’s it, and that is not true. Credit is simply a series of rules; and if you know the rules, you can abide by them, and you can even tweak them to your benefit. Credit is actually one of the easiest things to fix. Make the shift to learning the rules so you can play a different game. Shift your mindset to empowerment and knowledge when it comes to credit.
- The mindset for net worth – Shift away from this idea that more is more. True wealth is not just about income because your net worth is how much you own minus how much owe. So let’s just say you own a million dollars’ worth of things (woohoo you’re rich!): NO. If you owe $2 million, you have a net worth of $1 million minus $2 million, which is negative $1 million.
Make a shift that more is not more and that your net worth is truly about balance. Yes, we all want to earn more, but we also have to take care of what you have because it is earn versus owing.