Ideas for managing money

Are you lost in the rat race?
If you are like the majority of people, then it’s most likely you are encapsulated within a reality that is known to most as the rat race. The rat race was a term used to great effect in the now very successful series of books written by Robert Kiyosaki entitled Rich Dad Poor Dad. Within this series of books Kiyosaki points out how many of us are trapped within a rat race, where we go through a cycle of weekly and daily struggles that never seem to end. We are teased with promises of quick and fast money, however for most of us this only leads to a dead-end of false promises and lies. It just seems as though there is no pot of gold at the end of the rainbow.

This wealth management IQ Matrix will not earn you an abundant amount of money over night. Instead it is based on sound principles that have helped people to create long-term and long lasting wealth.

Throughout this discussion we will talk about creating the ideal wealth mindset, we will touch upon some sound principles to get out of a debt crisis, we will pinpoint some effective wealth building strategies that will get you focused and moving on the right track, and finally we will identify what components create a poverty stricken mindset, and what we must do to avoid locking ourselves into this way of thinking and behaving.

Please use this information only as a tool to guide you along your journey towards your financial objectives. Please also seek the guidance of a professional financial planner to further clarify the points presented within this article post and mind map.

Wealth Attraction Mindset
No wealth building strategy would be complete without a discussion of the mindset that naturally and easily attracts wealth on a daily basis. We will begin with a discussion about the wealth mindset because it lays down the foundations for everything that is to come. Without the right way of thinking, acting and believing, it is very unlikely that you will build long-term and long lasting wealth no matter what strategies or tactics you utilize.

Our mindset is an absolutely critical component that we must develop and improve upon on a daily basis to naturally align ourselves with the process of attracting more money and abundance into our lives. Hopefully by the end of this discussion you will come to understand the ingredients that make up the mindset of the rich and poor, and as a result you will alter your thinking, beliefs, habits and behavior accordingly to help you reach your desired outcomes.

The Characteristics of Frugality
Dictionary.com defines the word frugal as:

“Economical in use or expenditure; prudent saving or sparing; not wasteful; entailing little expense; requiring few resources…“.

In short, it basically means that you live a life well within your means.

Those who built their wealth over an extended period of time, are often not big spenders but rather tend to live their life frugally. Living frugally involves specific ways of thinking and some simple yet effective action.

A frugal personality always negotiates better prices.
A frugal personality always focuses on their net worth.
A frugal personality creates a budget plan and sticks to it.
A frugal personality does not buy designer made clothing.
A frugal personality makes purchases using cash.
A frugal personality buys in bulk wherever possible in order to save as much money as possible.
A frugal personality does not purchase a brand new car.
Finally, a frugal personality marries a frugal spouse who is responsible, loving, supportive, capable and honest.
You must therefore look for as many ways to save, to reuse things, to do more with less, to avoid following the lavish expenses of your neighbors and friends, and to get the most out of every dollar that you earn. Living sparingly, and investing wisely is the key to a frugal mindset and way of life.

An Indispensable Attitude to Cultivate
A wealth attraction mindset always proactively controls their life and circumstances. They create and control their life in ways that brings greater stability and security for the long-term. They are not swayed in their decision making by the crowd. Instead they aim to follow their own path, to create their own plans that are built around their deepest passions and desired outcomes.

A wealth attraction mindset also understands that the crowd mentality will always react to events and circumstances. This mentality leads to impulse shopping and spending, it leads to emotional management problems and ill-fated decision making.

More Indispensable Characteristics
A wealth attraction mindset also cultivates the characteristics of gratitude, discipline, self-sacrifice, hard work and an innate passion for living a full yet well managed, rounded and grounded life. They cultivate and grow these characteristics at every opportunity they get. And it is these characteristics that provide the foundations for strong habits that naturally build long-term and long lasting wealth.

Setting Clear Wealth Goals
Goals are critical and important aspects when it comes to building long-term success in business and in life. When it comes to growing long lasting wealth, goals become ever so important as they provide you with a carrot stick that is dangled out in front of you as you are progressing along your financial journey towards abundance.

Yes, indeed we are very much like donkeys, and we therefore need both long-term and short-term goals that will motivate us and propel us forward no matter how difficult the road ahead may get. The only difference is that your carrot stick is always within your reach and under your control. There is no one sitting on your back going for a ride. It is just you, the world and the temptations/opportunities that present themselves. This is where self-discipline comes into the picture and becomes one of the most indispensable characteristics towards helping you build long-term wealth and abundance in your life.

Ask the Right Questions and the Answers will Come
It seems no matter what topic we discuss that we always mention the importance of having the ability to ask effective questions.

When it comes to building wealth, questions are no doubt the keys that open the doors to many abundant opportunities. However, we must first come to a realization that questions must be asked. Once we accept this realization, we must then discover means and ways to ask the most effective questions that will stimulate efficient creative thought to bring forth the answers that we are after.

Create a set of wealth creation questions that you will ask yourself on a daily basis. Some examples include:

How can I earn more money this week?

How can I earn a passive income while I sleep?

How can I earn an extra $20,000 this year?

Focus on how questions over why questions. How questions will stimulate creative answers, while why questions usually only stimulate an ever growing list of excuses.

Wealth Attraction Mindset

Wealth Creation Habits
Once you have cultivated the wealth building characteristics into your personality and lifestyle, it will be naturally easier for you to develop some key critical wealth attracting habits that will keep you on track and moving in the right direction towards your financial goals.

Paying Yourself First

The habit of paying yourself first will help you to prioritize what is most important in your life. However, keep in mind that paying yourself first does not mean spending your money. It rather means investing this money into the appropriate wealth building buckets we will discuss a little later.

Delay Gratification

Delaying gratification is another essential habit that will keep you under control and in charge of your financial decisions.

It is so easy for us to be influenced by advertisers to purchase items that are digging us into an ever deeper ditch of financial burden. Always control yourself, your emotions and your expenses. Don’t get sucked into making emotional purchase decisions that you know you will regret.

As a strategy, always delay making a purchase decision until you go home and have a good long hard think about it for a few days. Talk to your most frugal thinking friends and ask them to justify why you shouldn’t make this purchase.

Focus on What You Want

Another habit that you must cultivate is the habit of focusing on what you want. Always focus on the things that you want that will have the greatest impact on your future long-term financial success.

And finally, get into the habit of being patient with your money because often things don’t happen over night, and often you must work diligently and think strategically in order to experience the wealth and abundance you desire to have in the future. Be patient and all will come.

Wealth Creation Beliefs
There are quite a number of beliefs that we could discuss here that will assist you in building a wealth mentality. However, for the purpose of this discussion let’s touch on two of them.

Expect to be Rich

You must expect that you can and will be rich. Expect that riches will come to you by following these sound strategies on a daily basis.

No Limits in Your Ability

You must believe that there are no limits to what you can do. You are in full control of your life and destiny, and you will therefore bring anything you imagine into reality. However bear in mind, that anything you imagine might not come about the way you imagine it be. So be wary of this, be patient, apply what you learn on a daily basis, and things will eventually go your way — most probably in unexpected ways that you may not even have imagined were possible.