Think your way to great wealth

Wealthy people are not wealthy because they were born in special circumstances. They are wealthy because of the way they do and think about things. Here are four things I challenge you to start doing in order to think wealthy.

Start creating income, not creating expenses. You can use new opportunities or new information to do either. For example, there are different reactions to the new lending rates that have been proposed. Some people are happy because it will be easier to borrow money for cars, holidays and other lifestyle issues. However, there are others who are now thinking about the investments that they can possibly make because of access to cheaper mortgages and business loans. Same information, same credit, different ways to utilise it. You can use this credit to create income or to create expenses.

You decide whether to create or spend. Plan with future resources rather than what you currently have. Before businesses raise capital, the owners create a spending plan. They don’t wait to have the money first. In fact, they only get the money when they show their plan. I have worked with couples who sit down at the beginning of the year to map out their investment strategy. For example, they decide to work towards a certain investment, or raise money for a certain university that they want their kids to go to. They don’t have the money there and then, but creating the plan helps them stay in the frame of mind to get it. You can’t achieve what you are not actively thinking about. You have got to see the tree before you start watering the seed. If you want to earn more, plan to earn more rather than waiting to be guaranteed of it.

SPEND TO MAKE MONEY

Spend to make money. What portion of your spending goes towards investment? I have given talks to several investment groups (chamas) over the last couple of years. It has always fascinated me at how many times chama members will argue over the fees charged, and many even try to get away without paying, yet they want to be taught about money and how to generate wealth as an investment group. That doesn’t make sense.

If you are in a chama, you also know the disputes that people have whenever the subject of contributions come up. People will argue over a proposed Sh5, 000 increment to monthly contributions and then spend that same amount in the bar that night. I’ve noticed wealthy minded people will use the right advisors or consultants and will not unnecessarily squabble over paying to gain. You cannot have this scarcity mindset if you want to generate wealth. You may need to spend money to access the information, get plugged into a certain network, learn about a certain investment, upgrade your business practices, etc.

The cost of you not spending money is usually more expensive. Many entrepreneurs have learnt that hiring the right people – who may be a tad more expensive – is actually cheaper in the long run, than hiring the wrong person. The next time you get an opportunity to move forward, don’t waste it because it will cost you some money. Wealth creation is not free. Be willing to be uncomfortable in the short term for long-term benefit.

It’s not all about you. You will limit yourself if you only focus on you and your immediate family. If more people were to try to impact a few more people, we would be much better off. And you can even start with your house help or nanny. What have you changed about their life since they started working for you? Truly wealthy people are very generous. This doesn’t mean they carelessly give everybody who asks; however, they want to achieve some sort of impact with what they have.

They are more concerned with legacy than displaying their material possessions. This generosity doesn’t suddenly start when you are worth millions. It starts now, with what you have. It doesn’t even have to be money. It can be time. Giving puts you in the much needed mindframe to create wealth. If you believe you lack, you can’t be wealthy. Giving helps you remember what you have, and that attracts more into your life. Ensuring your own comfort can’t be your biggest achievement.

Waceke runs programmes on personal finance & wealth creation. Find her at [email protected]