How To Build Wealth & Create An Abundant Financial Future

Understanding your relationship with money and cultivating a healthy mindset about wealth are crucial to achieving financial prosperity and freedom. Experts like Jaspreet Singh, Lewis Howes, and Mark Matson share insights into how to foster an abundance mindset, assess the role of money in shaping character, and overcome inherited financial beliefs.

Acknowledge that you can and will become wealthy through a mindset of abundance, not scarcity.

Jaspreet Singh suggests that one must believe they can and will become wealthy by adopting an abundance mindset instead of a scarcity mindset. He points out that wealth isn't a zero-sum game and that there's plenty of money in the world for everyone. Lewis Howes adds that many live paycheck to paycheck with a survival mindset, but advises how to shift from scarcity to abundance.

Money is a tool to gain financial freedom, options, and the ability to provide for yourself and your loved ones.

Singh defines money as a tool for financial freedom, providing options like when to vacation or where to dine, and enabling significant choices like determining the quality of healthcare or education for one's children. He underscores the role of money in improving one's quality of life.

Understand that money itself does not make someone a good or bad person - it simply amplifies who you already are.

Singh clarifies that money doesn't inherently alter one's personality, but instead amplifies existing tendencies. He criticizes the habit of creating excuses around money, such as labeling it as bad, which often stems from personal insecurities about finance. He advises against judging individuals based on their financial status since such assessments are usually unfounded.

Recognize and overcome any generational money traumas or limiting beliefs you may have inherited.

Be willing to challenge long-held assumptions about money that were taught to you, even by well-intentioned family members.

Mark Matson emphasizes the importance of challenging and changing detrimental ...

In an insightful discussion, Jaspreet Singh distinguishes between earning a high income and the distinct process of building financial wealth.

Making a high income does not automatically translate to building wealth.

Jaspreet Singh points out a common misunderstanding that earning a high income equates to wealth. He reveals that some high earners, including doctors with incomes ranging from three to six hundred thousand dollars a year, still live without savings or investments.

Many high-earners still live paycheck-to-paycheck and have no significant savings or investments.

Singh nods to the trend where high-earners normalize expensive purchases, like BMWs during their twenties, which contrasts with investing in assets that contribute to wealth. He suggests, without direct mention, that high income does not equate to financial prosperity, indicated by a lack of savings and unsure financial management among substantial income earners.

Building wealth requires consistently saving and investing a portion of your income, rather than spending it all.

Singh criticizes the social habit of spending extravagantly, displaying wealth through high priced homes, vacations, and fashion, which does not equate to wealth-building but rather diminishes it.

Avoid the trap of immediate gratification and conspicuous consumption, and instead focus on long-term wealth-building.

Throughout the conversation, hints emerge that immediate gratification and conspicuous consumption are trappings to avoid. Instead, Singh proposes the 75-15-10 plan — an approach where one spends no more than 75% of their income, while investing at least 15% and saving a minimum of 10%.

Singh, reflecting ...

The foundation of building wealth, as suggested by the experts interviewed, is to focus on learning how to make dollars work for oneself, not just earning them. It's crucial to understand methods to increase earnings, be disciplined about saving and investing, and educate oneself on effective investment vehicles and strategies.

Identify ways to increase your income through raises, promotions, or side hustles.

While the interview did not directly cover strategies for getting raises or promotions, experts like Vivian Tu provide indirect insights. She emphasizes the importance of performing well and becoming an indispensable A-plus employee. In industries that are performing less well, those doing the bare minimum are often the first to be let go, while those who excel are more likely to maintain job security and receive opportunities for financial growth.

Implement a disciplined savings and investment strategy, even if it's a small amount at first.

Jaspreet Singh advises on the necessity of allocating parts of one's income specifically towards investing. He states emphatically that wealth cannot be built if all earnings are spent. He recommends starting small with investments, enforcing the importance of being disciplined with savings and investing money to observe compound growth over time. Lewis Howes echoes this sentiment, suggesting reinvesting a certain amount of income every month into investments before spending elsewhere.

Educate yourself on effective investment vehicles and strategies.

Fundamental to wealth-building is understanding how, where, when, and what to invest in. Singh addresses the necessity of education in investment strategies, indicating questions that need answering when considering investing. Lewis Howes adds to the conversation by mentioning different investment opt ...

Understand that our brains are not naturally wired for long-term investing and wealth-building.

Individuals often struggle with managing their finances effectively. Lewis Howes mentions, "Our brains are not naturally wired for investing," which hints at the challenges many face, such as impulse control and seeking immediate gratification. Singh alludes to people selling their investments prematurely due to the lack of immediate returns, which underscores the difficulty in overcoming these psychological hurdles.

We tend to struggle with impulse control, delayed gratification, and overcoming psychological "money demons."

The psychological battle with money is evident as Singh reflects on how investing lacks the immediate social rewards of conspicuous spending showcased on social media platforms like Instagram, Facebook, or TikTok. Mark Matson underscores this by mentioning the allure and trappings of the American dream, which can trap people in a scarcity mindset. He elaborates on "money demons" that can discourage individuals from taking opportunities for financial advancement based on personal or inherited beliefs about money. Matson also points to the challenges individuals face in their relationships, where wealth is intertwined with personal character.

Recognize that the desire to display wealth and status can be a powerful emotional driver.

Resist the urge to prioritize outward appearances and material possessions over genuine wealth-building.

People often prioritize appearances and status symbols over genuine wealth accumulation. Singh provides an example of high school students prioritizing the purchase of Jordans over food. He stresses that such choices reflect a person's priorities and emphasizes the importance of prioritizing wealth-building over luxurious expenditures. Matson speaks to the emotional drive to obtain status through material possessions, citing the urge to upgrade to better things upon seeing others with more.

Reframe money as a tool to achieve your deeper life purpose and values, not just an end in itself.

Lewis Howes introduces Matson's concept of the "Destructive Cycle of Wealth," where individuals chase wealth without attaining happiness. Matson, realizing that clients with significant wealth can remain unsatisfied, indicates that money does not meet spiritual needs, suggesting that a purpose ...