By Jazsmine Hill
Being rich is not all about having money, it is about having the right mindset, attitude, and outlook. It is also about your well-being. The right mindset helps you become self-sufficient. A positive attitude can give a person more energy and confidence which can help them set higher goals. Having a positive outlook on life can help you cope better with stressful situations, which is helpful towards your well-being. Check out the differences between rich vs poor mindsets.
Rich mindset people focus on ways their money can work for them after they have put in the effort. They prefer to save and/or invest their money from a portion of their earned
income. Rich mindset people also create multiple avenues of income, such as active and passive income. Active income is money you make from actively participating in work, for example, earning tips as a server or hourly commission. Passive income is money you earn from not participating in work, for example, stock dividends or rental property.
Poor mindset people usually end up saving their money but hardly invest in anything. They only have one source of income which could lead to financial failures. It does not give you the flexibility that having multiple sources of income can. It can help break the cycle of living from paycheck to paycheck. Poor mindset people usually end up in the same position for years because they do not take risks, think big, or do not value education.
Changing your mindset from poor to rich can be challenging but is rewarding. You can start by deciding what your purpose is in life. Find ways to educate yourself regarding money and develop a healthy relationship with it. You should log your expenses to keep track of your spending habits and set financial goals. This can give you a broader vision of how you live your life and allow you to create the life you want by knowing where your money goes and how much of it. Having good discipline is key to creating a life you want instead of settling for whatever comes along.