When I graduated from university and found a job, it is as if there is a great opportunity that lies before me.
I haven’t taken pocket money after I went to the army and during university, I had to balance strenuous school projects with one or two part time jobs. I barely have enough to eat and have sometimes have to work through lunch and go back to eat dinner.
After finding a job, the cash flow looked tremendously different between working with $300 to working with $1800.
That does not afford me a millionaire lifestyle, but if you think about it, the lifestyle is what millionaire in the past would envy.
Some of the great food we can eat weekly, entertainment that only came about in recent years. And these are not limited to the rich.
Essentially here is our problem: we desire the lifestyle of millionaires so much so that businesses helps us to satisfy that at reasonable prices.
And the ultimate: We listen to what they say and give in to their stories and subscribe to that lifestyle.
The worse part about this subscription is we usually make it so recurring, so habitual and we think this is the standard and we couldn’t go below this standard anymore.
Ultimately, you look back at when you are 35 years old and are confronted with the problem that you have not saved up for retirement or your children’s education.
You start venting your dissatisfaction with your boss, your company and your government that you are so disadvantaged and the system is wrong.
The world might be challenging but there are a lot of things within your control. One thing is that you are the biggest driver to convert your untapped potential into real wealth capital.
Enjoying the perks of a Wealthy before Actually being Wealthy
The problem with most folks is they like to put the cart before the donkey.
This means that they chose to enjoy the fruits of their labor without putting in the labor.
This usually take place because all this while they been in school, they thought that is “real hard work”. To an extend that is true, but graduation is not the finishing line that you can enjoy the fruits of your labor.
It is the starting line. Working life is likely tougher than school.
As they are not actually wealthy, they spend their cash flow from income on unproductive assets that satiate their morale at work because work is “tough” and they “deserve it”. Whether work is tough is subjective and in alot of cases is more of an excuse to rationalize why they need to spend.
When you do not build up productive assets, you failed to build wealth.
Here are some productive assets:
- Improving your primary domain skill set
- Improving complementary skill set
- Put money in educating on your skillset or something that have a potential to be a useful domain to master
- Building wealth machines
The ironic thing about being wealthy, is that you need to develop the mindset of a wealthy person first.
That means that you need to think like a wealthy person before you see the wealth.
Becoming a Wealthy person before you have wealth
Many would think “Think like a wealthy person? I will treat my whole family at Tung Lok Restaurant!” That is not what I meant.
The wealthy are likely to be very conscious how they spend their time. They would not spend it with people that sapped their psyche compared to people that positively influenced them. They choose their peers well.
They tend to not give themselves excuses, but reflect well before actions, be realistically aware of the end results they could expect.
Then they execute, review, tweak their plans and try to get better.
This does not mean starting a business. A wealthy person could be one that is fiercely focus on their career milestone and are willing to investing their time, into themselves to make them more valuable and command a higher compensation.
The wealthy mindset also involves a internal or external system to continuously improve, tweak and execute well.
They want to learn more from others and actively seek to do so instead of being very passive about it (read relying on chancing upon Facebook stream posts)
Most of all the wealthy mindset involves understand opportunity costs well.
They understand there are limits and they have to choose. They have to make hard decisions.
Being wealthy before getting wealth is not common
There are less wealthy people because you need parents or mentor to incept this mindset to you. Usually rich parents would know this better.
The second group are those who are not just smart but reflect well about things. They tend to be a sponge for knowledge.
These 2 groups tend not to be large because majority of the money belongs to the top minority percentages. The second group is not common because we been so utterly distracted to do or react to things that we don’t have the time to reflect we need to change the way we frame things.
If you want to build wealth, you got to fashion yourself as a wealthy person before you can be wealthy.
Be someone in the second group: Be a sponge for knowledge, execute, reflect, tweak your plan. Then rinse and repeat.
Don’t be someone who fails to strive to become better.