By Antonio Porretta
When you explore the lives of successful people, you’ll see a pattern emerge: Rarely will a wealthy person attribute their success to a single stroke of luck. Instead, they often credit their mindset as the key driver behind their prosperity.
This mindset centers on long-term wealth building rather than short-term spending. And if you want to create wealth for your future, it’s crucial to develop this perspective early on. Here are a few strategies to help you cultivate a wealth mindset.
1. Put Real Thought Into Your Spending
If you start making more money, accumulating more money in savings, or both, beware of lifestyle inflation. This is a common phenomenon where a person’s spending habits go up with their wealth.
However, truly wealthy people don’t just spend money indiscriminately. When you develop a wealth mindset, you think about both the short-term and long-term impacts of your spending.
Here’s an example. Let’s say you’ve just gotten a new job making a lot more than you used to. You have a reliable car already, but you’re considering buying a motorcycle to enjoy on the weekends.
Before the purchase, you consider the sale price of the motorcycle. But to truly develop a wealth mindset, you need to look at the various long-term costs associated with the purchase as well:
- Motorcycle gear
- Gas
- Insurance
- Taxes
- Maintenance and repairs
Every purchase comes with an opportunity cost. After all, you could have spent the money on something else.
That doesn’t mean you should never purchase anything beyond the barest essentials—it means you should look carefully at the financial impact of each purchase. Does the enjoyment you’ll get out of the purchase ultimately matter more than the money you’ll lose?
2. Create a Financial Strategy
This might sound like an obvious suggestion. But when it comes to building wealth, too many people focus purely on earning more money. Earning more is a good thing, but truly wealthy people don’t just earn more—they also work hard to manage and grow the money they have. One of the smartest ways to do this is to invest carefully.
When you develop a wealth mindset, you shift your financial focus from the short term to the long term. You master your emotions and implement a strategy. To that end, we recommend choosing wise investments; even small investments count, as they build over time with compound interest.
Unless you already have a strong working knowledge of the investment landscape, you might be unsure of where to begin. Learning about investing on your own may be useful, but an experienced financial advisor can also help you make sense of your options and choose the best strategy for meeting your goals.
3. Ditch the Poor Mindset
If you want to develop a wealth mindset, first make sure that you aren’t holding on to a poor mindset. Plenty of people have this kind of damaging outlook without even knowing it. If you have any of the following beliefs, you might have a poor mindset:
- Wealth is reserved for a select few people.
- I’ll never get out of debt or reach my financial goals.
- There are no opportunities for change.
- Pursuing wealth is inherently immoral.
These beliefs can be insidious and hard to let go of. But the first step to letting them go is to identify them. When these types of thoughts pop up, counter them with your wealth mindset. For example, if you start thinking you’ll never be out of debt, remind yourself that you have a financial plan that helps you move toward your goals.
A Wealth Mindset Begins With Strategy
Few people create wealth by chance. And while wanting to build wealth is an admirable goal, knowing where to start can be overwhelming. That’s why having a financial advisor by your side may boost your confidence as you pursue your financial goals.
At Blackbridge Financial, we work to guide you to define your financial objectives and what you want for your future. But our services extend beyond goal setting—we assist you in implementing your financial plan, making necessary adjustments, while supporting a strong wealth mindset all along the way. Ready to get started? Contact us today to take the initial step by emailing me at [email protected] or calling 704.960.9646.
About Antonio
Antonio Porretta is an independent wealth manager at Blackbridge Financial with over 24 years of experience. He specializes in helping people create, distribute, and preserve their wealth. Antonio received an executive MBA from Saunders College of Business at Rochester Institute of Technology in 2007 and also holds the Accredited Asset Management Specialist℠, AAMS® designation. Originally from Rochester, NY, Antonio has been a resident of Harrisburg, NC, since 2007. Outside of work, he enjoys playing soccer and tennis, coaching, and spending time with his wife, Laura, and their children, Cristiano, Victoria, and Matteo. To learn more about Antonio and how he can make a difference in your financial life, visit www.blackbridgefinancial.com.
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Securities are offered through LPL Financial, Member FINRA/SIPC. Blackbridge Financial is an other business name of Independent Advisor Alliance, LLC. All investment advice is offered through Independent Advisor Alliance, LLC, a registered investment adviser. Independent Advisor Alliance, LLC is a separate entity from LPL Financial.
This material was prepared for Antonio Porretta’s use.