4 Money Mindset Secrets to ATTRACTING Wealth & Abundance
In this episode of The School of Greatness podcast, Dan Martell, Lewis Howes, and Ken Honda examine common limiting beliefs and negative associations about money that can hinder wealth-building. They discuss the importance of cultivating an abundance mindset and a positive relationship with money, viewing it as a form of energy to circulate and invest in meaningful experiences beyond ego-driven goals.
The experts share practical strategies for building wealth, from adopting a savings and investment mindset to developing financial literacy and money management skills. They emphasize the need to overcome societal pressures and ingrained beliefs that perpetuate overspending, while striking a balance between spending and saving for long-term financial growth.
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1-Page Summary
Limiting Beliefs and Negative Associations About Money
Financial experts Dan Martell, Lewis Howes, and Ken Honda discuss beliefs that prevent wealth-building, like equating money with evil. Martell shares guilt around wealth prevented him from enjoying luxuries. Howes notes language reinforces these beliefs; Honda advises tracking negative self-talk.
Abundance Mindset and Positive Relationship With Money
Howes and Honda view money as energy to circulate through spending on experiences. Honda recounts how investing in a seminar led to mentors. Howes and Honda say tie financial goals to values beyond ego, using wealth to give back. Martell values generous wealth stewardship.
Practical Strategies and Habits For Building Wealth
Adopting a Savings and Investment Mindset
Howes stresses investing over spending. Singh advocates separating earning and spending, funneling income into investments. Martell notes investing time.
Developing Financial Literacy and Money Management Skills
Howes highlights learning from financial experts to distinguish making money from building wealth. Singh says just earning high income doesn't create wealth without management. Martell and Singh discuss overcoming limiting beliefs and societal pressures to overspend. Honda counsels on spending-saving balance.
1-Page Summary
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Counterarguments
- While equating money with evil can be a limiting belief, it's also important to acknowledge that the pursuit of wealth can sometimes lead to unethical behavior if not tempered by strong moral principles.
- Feeling guilt around wealth can be a sign of a well-developed social conscience, and it's important to address the root causes of this guilt rather than simply trying to enjoy luxuries without concern for broader social implications.
- Language does reinforce beliefs about money, but it's also a reflection of cultural values and historical context, which can provide important insights into how societies view wealth and its distribution.
- Tracking negative self-talk about money is useful, but it's also important to recognize systemic barriers that may contribute to financial struggles, which are not simply the result of individual attitudes.
- Viewing money as energy to circulate can encourage consumerism if not balanced with a sense of environmental sustainability and the impact of one's spending habits on the planet.
- Tying financial goals to values beyond ego is commendable, but it's also necessary to ensure that these values are inclusive and consider the well-being of all members of society, not just one's immediate community.
- Generous wealth stewardship is important, but it should not replace the role of fair taxation and public policy in addressing societal needs and reducing inequality.
- Investing over spending is a sound financial strategy, but it's also important to recognize that not everyone has the means to invest, and for some, immediate spending on basic needs is a priority.
- Separating earning from spending is a good practice, but it's also crucial to understand that for many people, especially those with low incomes, this separation is not feasible due to the need to cover immediate living expenses.
- Investing time is valuable, but it's also important to balance time investment with rest and personal well-being to avoid burnout.
- Learning from financial experts is beneficial, but it's also important to critically evaluate their advice, as it may not always be applicable to one's personal financial situation or may be influenced by their own interests.
- Earning a high income is not the sole determinant of wealth, but it's also important to recognize that for many, a high income is a necessary foundation for wealth-building, especially in the face of rising living costs.
- Overcoming limiting beliefs and societal pressures to overspend is important, but it's also necessary to acknowledge that consumer culture is deeply ingrained and changing personal habits may require broader cultural shifts.
- A balance between spending and saving is crucial, but it's also important to consider that some people may need to prioritize saving for emergencies or future needs over immediate gratification.
Actionables
- Create a "money mantra" to shift your mindset by writing a positive affirmation about wealth that aligns with your values and repeat it daily to reprogram negative beliefs about money.
- For example, if you've always thought of money as something that corrupts, you might write, "Money is a tool that amplifies my ability to do good in the world." Place this mantra where you'll see it often, like on your bathroom mirror or as a phone wallpaper, to reinforce a positive association with wealth.
- Set up a "values-based budget" where your spending is divided into categories that reflect your core values, ensuring that your money circulates in ways that enrich your life and align with your beliefs.
- For instance, if one of your values is education, allocate a portion of your budget to books, courses, or donations to educational charities. This approach ensures that your spending habits support what you truly care about, rather than being driven by impulse or societal pressure.
- Initiate a "wealth stewardship day" once a month where you review your finances, educate yourself on investment opportunities, and plan how to use your resources to benefit others.
- During this day, you might spend time reading financial blogs, talking to a mentor about investment strategies, or deciding on a charity to support. This regular practice encourages proactive wealth management and reinforces the concept of using wealth for generous stewardship.
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Limiting Beliefs and Negative Associations About Money
Dan Martell, Lewis Howes, and Ken Honda tackle disempowering mindsets related to wealth that can hinder financial success and explore how language plays a critical role in shaping financial beliefs and actions, leading to procrastination and other self-sabotaging behaviors.
Beliefs That Keep People Broke or Financially Limited
Dan Martell and Lewis Howes delve into the belief systems that keep people financially constrained. Common misconceptions include the notion that rich people are inherently evil, engage in tax evasion, take advantage of others, or are fundamentally unhappy.
Martell suggests that these negative beliefs can prevent individuals from aspiring to be affluent by seeding a fear of wealth and its potential negative connotations. Lewis Howes expands on this, saying that believing in these negative stereotypes about the rich may subconsciously make someone reject any wealth they might accumulate.
Martell shares personal experiences to illustrate guilt and shame around wealth. Despite having made his first million at 27, he refrained from indulging in luxury until he was 36, highlighting the internal struggle individuals often face in acknowledging their own success. He kept his own McLaren hidden, a symbol of his success that caused discomfort and worry about how others would perceive him.
Moreover, clients often struggle to own the identity of being "ultra-rich," indicative of societal pressures and guilt associated to wealth. This guilt, Howes echoes, can act as a barrier to attaining or enjoying the fruits of one’s success.
Language's Power In Shaping Beliefs and Behavior
The importance of self-talk and internal narratives is underlined by both Howes and Martell as being crucial in determining life outcomes. Language, they argue, can either reinforce a limiting belief or empower individuals toward desirable goals.
Martell illustrates how everyday language reveals one's limiting beliefs. Phrases intimating obligation or imply wishful thinking, such as "should" or "it'd be nice," can innately expect failure and undermine progress. Ken Honda contributes to the conversation, advising people to identify whether their subconscious affirmations are happy or negative and to unders ...
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Limiting Beliefs and Negative Associations About Money
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Clarifications
- Ken Honda is a well-known author and speaker in the realm of personal finance and self-help. He emphasizes the significance of understanding one's relationship with money and how it impacts overall well-being. Honda often discusses the power of language and self-talk in shaping financial beliefs and behaviors. His insights focus on transforming negative money mindsets into positive ones to foster a healthier approach to wealth and abundance.
- Guilt and shame around wealth can hinder success by creating internal conflicts that lead to self-sabotage and fear of judgment from others. These negative emotions can prevent individuals from fully embracing their achievements and enjoying the benefits of their success. The societal pressures and negative associations attached to wealth can make individuals reluctant to identify as affluent, limiting their ability to pursue and maintain financial prosperity. Overcoming these feelings of guilt and shame is crucial for individuals to break free from self-imposed constraints and pursue their financial goals with confidence.
- Language plays a crucial role in shaping beliefs and ...
Counterarguments
- While rich people are not inherently evil or unhappy, wealth can sometimes be accumulated through unethical means, and it's important to acknowledge and address these instances.
- Aspiring to be affluent is not the only path to a fulfilling life; some individuals may find greater satisfaction in non-materialistic pursuits or lifestyles.
- Guilt and shame around wealth can sometimes be a healthy response to societal inequities, prompting individuals to consider the social responsibilities that come with affluence.
- Language is a powerful tool, but it is not the sole determinant of success; structural factors and access to resources also play significant roles in an individual's ability to achieve financial goals.
- Positive self-talk can be beneficial, but it must be coupled with realistic planning and action; overemphasis on positivity can lead to ignoring real challenges.
- The idea that simply changing one's language or self-talk can manifest changes may not always ...
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Abundance Mindset and Positive Relationship With Money
Financial experts like Lewis Howes and Ken Honda talk about fostering an abundance mindset and reshaping one's relationship with money by aligning personal values and purpose with wealth-building.
Understanding Money As Energy That Needs to Flow
The attitude towards money can significantly influence financial experiences. Lewis Howes and Ken Honda discuss money as an energy that needs to flow rather than being hoarded or restricted.
Avoiding the Tendency to Hoard or Restrict Money
Honda compares hoarding money to a stagnant pond and discusses the negative consequences of not allowing money to have an outlet. By trusting in the return flow of money, individuals can prevent the physical and energetic constipation that comes from hoarding wealth. Honda suggests that when people let go of money with the intention to "bless the world," they invite the circulation of wealth and open themselves to receiving more opportunities.
Money as a Tool For Experiences and Memories
Honda also encourages the use of money to create memories and experiences. He recounts how investing in an expensive seminar led to incredible mentorship opportunities, showing that spending money on enrichment activities can open doors to future wealth. Similarly, Dan Martell's story about speaking at a rehab center and impacting youth with his success implies that wealth can support one's mission and purpose.
Aligning Personal Values and Purpose With Wealth-Building
Howes and Honda argue that connecting personal values to financial decisions leads to a more satisfying and abundant life. They discuss the importance of developing a meaningful "why" behind financial goals that extends beyond ego-driven desires.
Developing a "why" Behind Financial Goals Beyond Ego
Rob Dial emphasizes the importance of having a compelling "why" behind financial aspirations, suggesting that it inspires action and overcomes fear. For instance, if achieving a financial goal could save a loved one's life, the quest for w ...
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Counterarguments
- The concept of money as energy that needs to flow may oversimplify complex economic systems and individual financial circumstances.
- Hoarding money, in some contexts, can be a rational response to economic uncertainty or a strategy for long-term financial security.
- Spending money on experiences and memories does not guarantee future wealth or opportunities and may not be feasible for individuals with limited financial resources.
- Aligning personal values with wealth-building assumes that individuals have the luxury to make choices that are not solely based on economic necessity.
- The idea that having a compelling "why" behind financial goals always inspires action may not account for systemic barriers that prevent individuals from achieving financial success.
- The notion that financial goals should serve a purpose larger than oneself may not resonate with individuals who prioritize personal or family needs over broader communit ...
Actionables
- You can create a "Value-Aligned Spending Plan" by listing your top five personal values and then tracking your expenses for a month to see how they align. If you value community, for example, you might find joy in redirecting funds you'd normally spend on material goods to local events or charities. This can help you feel more connected to your financial decisions and ensure your money flows towards what truly matters to you.
- Start a "Generosity Jar" where you set aside a small amount of money each week to use exclusively for acts of kindness or donations. This could be as simple as buying coffee for a stranger or contributing to a friend's fundraiser. The act of giving not only fosters a sense of abundance but can also open doors to new relationships and opportunities, as generosity often encourages reciprocity and goodwill.
- Implement a "Future Experiences Fund" where you save a portion of y ...
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Practical Strategies and Habits For Building Wealth
Financial experts Lewis Howes, Jaspreet Singh, Dan Martell, Ken Honda, and Rob Dial provide valuable insights into effective wealth-building tactics.
Adopting a Savings and Investment Mindset
To build wealth, it is critical to adopt a savings and investment mindset, which requires discipline to separate the acts of earning money from spending it.
Separating Money-Earning From Money-Spending
Lewis Howes emphasizes investing money in the future, suggesting a mindset oriented toward saving and investing. Jaspreet Singh warns against spending all one’s earnings and recommends an intentional division between earning and spending money. Howes discusses spending money on preferred items but advises against overspending. Singh talks about his past tendency to buy luxury items like watches and cars but now acknowledges that such consumption doesn't contribute to wealth accumulation.
Consistently Funneling a Portion of Income Into Investments
Dan Martell highlights the value of one's time, which is a resource that can be used for saving or investing, even though he doesn't explicitly mention funneling income into investments. Singh prescribes a practical step in wealth-building: taking money not spent on consumption and redirecting it to investments, thereafter reinvesting the returns for additional growth. Howes recommends making investment a regular monthly practice. Singh shares his transition from excessive spending to boosting his investments, starting with real estate.
Developing Financial Literacy and Money Management Skills
Increasing one's financial literacy is key to discerning between earning money and truly building wealth.
Difference Between Making Money and Building Wealth
Howes stresses the value of associating with financial leaders and experts to learn and improve financial literacy. Singh illustrates that some people, despite high incomes, die broke because they didn’t build wealth—having high earnings doesn’t equate to wealth if it isn’t managed for saving and investing. Singh contrasted a consumer mindset, which focuses on spending additional income, with a traditional savings-oriented mindset.
Lewis Howes concurs that a common mistake is spending more than one earns, particularly on credit, leading to a cycle of debt. Jaspreet Singh emphasizes that mere money-making is not the same as wealth-building; it requires meticulous management of one’s finances.
Overcoming Emotional Blocks and Psychological Barriers To Wealth
Dan Martell speaks to overcoming self-limiting beliefs, like the idea ...
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Practical Strategies and Habits For Building Wealth
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Counterarguments
- While adopting a savings and investment mindset is important, it's also necessary to recognize that not everyone has the same capacity to save due to varying income levels and living expenses.
- The advice to separate money-earning from money-spending may not account for those with irregular income streams, such as freelancers or gig economy workers, who may find it more challenging to consistently allocate funds for investment.
- Consistently funneling a portion of income into investments assumes a level of financial stability that some individuals may not have, especially those living paycheck to paycheck or dealing with high levels of debt.
- Developing financial literacy is crucial, but access to quality financial education and resources may not be equally available to all socioeconomic groups.
- The emphasis on not spending more than one earns can be overly simplistic, as it doesn't consider necessary debt, such as student loans or mortgages, which can be strategic and beneficial in the long term.
- Overcoming emotional blocks and psychological barriers is important, but the text may underestimate the complexity of psychological issues and the professional help that might be required to address them.
- Associating with financial leaders and experts can be beneficial, but it's important to be critical of the advice given, as not all experts have the best i ...
Actionables
- Create a "Wealth Building" board game to play with friends and family that simulates financial decisions, investments, and the impact of lifestyle inflation. This game should include scenarios where players must choose between different saving and spending options, invest in various assets, and navigate financial emergencies. The objective is to educate players on the principles of wealth building in an interactive and enjoyable way.
- Start a "Finance Buddy" system where you pair up with someone who shares your financial goals. Regularly meet to discuss progress, share resources, and hold each other accountable for separating earning from spending. This partnership can provide mutual support and motivation, as well as a platform to practice financial literacy skills together, such as analyzing investment opportunities or creating personal budgets.
- Develop a mobile app tha ...
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