What Is An Entrepreneurs Mindset? There is a strong distinction between wealthy entrepreneurs and broke entrepreneurs. It has nothing to do with all the money that wealthy entrepreneurs have that others don’t. Nor is it the extravagant luxury, or their exuberant lifestyle.
The difference is in the entrepreneurs mindset! Statistics have proven this occurrence over and over again. Most, if not all, the people who won the lottery or came into an obscene inheritance overnight go back to being broke shortly thereafter. What’s more shocking is that they waste the money so fast that they don’t even stay wealthy long enough to have a long term impact on their life!
This acts as further proof that it’s not the money and luxurious lifestyle that improves people’s lives.
It’s having the right entrepreneurs mindset!
People with an entrepreneurs mindset behave in very different ways towards money. But it doesn’t stop there, it’s also how they treat all their belongings that have a monetary value! Their minds process all things money different to the majority of the population’s traditional mindset.
In contrast, let’s look at how the average Joe/Jane handles a hefty check… 99% of the population would go shopping and most likely not for the stuff that maintains it’s value either. Cars, clothes, phones, home renovations, etc. lose value as soon as you buy them and depreciate like crazy. And don’t get me started on extravagant vacations, fancy dinners, hotel nights, etc. as soon as it’s over the money is gone, never to be seen again!
The average folk think that to become and feel rich, they have to look and live rich. I hear you, “But Tareq, I saw such and such guru driving a Lambo”… Listen, it’s ok to have all these things, just not with all the money you have. When you can afford 10 or 20 Lambo’s go ahead and buy one it won’t put a dent in your wealth my friend! Don’t focus on LOOKING “well-off” shift your mindset to BEING “well-off”.
Avoid falling in the trap of thinking that to become wealthy you need to ‘act’ and/or ‘live’ like those who actually are! These ideas were created to feed and grow the consumer mindset. To get rich you need to THINK like wealthy people.
Which brings us back to the entrepreneurs mindset and how central it is to actually getting rich!
Developing An Entrepreneurs Mindset
The first step in developing an entrepreneurs mindset is to let go of the idea “buy now, struggle later”. In psychology they refer to this behavioral phenomenon as “instant gratification”. Marketers all over the world know this phenomenon way too well and exploit it in most of their campaigns. It’s the psychology behind impulse buying.
This is one of the instances where someone with an entrepreneurs mindset thinks differently… They welcome and prefer the mindset of “delayed satisfaction”. Postponing the act of buying until there is an immediate and very real need to buy that commodity.
Side note: This mindset is also why some are more successful in stock and forex trading than others.
Unfortunately, the majority of people who are so deep sunk in debt suffer from an addiction to instant gratification in some form. With time they end up worse off every day than the one before from loans and credit card bills piling up. These people, as an inevitable result, end up being slaves to their jobs to be able to honor their financial obligations.
Having and keeping a job stops being a choice for them and becomes one of life’s necessities. The no longer have the freedom to choose based on what they love to do and sometimes end up taking a job they hate because it pays better as a start. Such people can’t even retire early if they wanted to, the obscene debt they have compiled won’t pay itself will it?
Let’s take a look at how the entrepreneur mindset avoids this debt trap… In 2013 I was having a chat with a friend who handles the real estate investments of some high net worth entrepreneurs. I asked him how do they manage to have so many properties and still manage to have huge sums in their bank accounts. What he said really blew my mind.
I, myself have never thought like that until that day! They leverage loans in a clever way. Most of us normal folk, buy a house on mortgage… We pay a deposit and pay off the rest of the loan over time, end of story.
Not them though…
They don’t spend a penny, instead, they have large deposits in their banks. Deposits that they spent years growing. These deposits are locked in as long term investment funds in banks accruing interest and growing. They use these deposits as insurance for the loans and take a loan that’s only a fraction of their investments. That way it’s the interest of their deposits that pay off the loan and their wealth keeps growing.
They recognized earlier on in their lives the risks of debt and the benefits of living a debt-free life. I shared this story with you here because you hear many talking about being debt-free…
But rarely do you find someone telling you exactly how it’s done.
Debt-free is not exactly debt free, they take loans but not like most of us do. Now that you know how it’s done, you are one step closer to improving your financial health! The greater the wealth people with an entrepreneurs mindset have access to the more they search for opportunities to grow it. This is how they secure a life long state of wealth and abundance. Here’s another mindset shift for you to think about.
Shifting To An Entrepreneurs Mindset
When was the last time you saw an employee who was one of the top 10 or even 100 net worth individuals in the world? Don’t get me wrong, I’m not one of these entrepreneurship guru’s that smashes being employed. There are millions if not billions in the world who are living happy lives in employment.
However, since you have read this far, I would like to believe you are looking for more than the life you are currently living. People with an entrepreneurs mindset have known for aeons that conventional jobs will NEVER make them obscenely rich! It would most likely make their employers rich yes, but in most cases not them.
Let’s think practically for a second.
If we have 24 hours a day, if we deduct 10 for food, sleep, etc. we’re left with 14 hours. Try as we may, we cannot make the day longer. The first criteria of selecting a business with a potential for success is your ability to scale it at will. I hear you, scaling a job through an increase in salary is very possible…
The problem is, that’s taking one part of the criteria, are you able to grow your salary at will? Is that decision in your hands? Finding a higher paying job is in your hands but getting accepted for it is not! So I guess in most cases scaling the business of trading your time for money isn’t possible at will. This doesn’t apply if you are an independent consultant or a freelancer it’s different.
“How though?” you may ask. It’s very simple and logical, in these cases you can hire people to take on some of your clients. In a job you can’t do that and increase your income since you are not paid for work done but time in bulk.
Can entrepreneurs retire early?
The answer is yes! Having your own successful business means you are pretty much set for life. In fact the business would likely continue making money even after you are long gone from this world. So, the goal is to keep on growing your business until the income it generates, exceeds your expenses. It’s also worth noting that the sooner your business generates income without your involvement the better.
That is what is known as passive income.
The Importance of Passive Income To Having An Entrepreneurs Mindset
Passive income is the ultimate goal for anyone with an entrepreneur mindset. It means that you can earn money while you sleep, or are on vacation, etc. At that moment you no longer have to accept or stay in a job that you hate. In fact you could choose to do nothing at all in life but the things you love and still be growing your wealth. This is the true definition of freedom in my opinion as well as that of many others around the world.
It’s the entrepreneurs mindset ladies and gentlemen.
There are people in this world who cringe at the thought of running their own business. Many think that money is the root of all evil…
That business owners are money hungry individuals ready to sell their principles for a buck…
Slaves to the dollars in their bank account! Otherwise how on earth did they manage to get so rich without being so selfish yeah?
People with the entrepreneurs mindset beg to differ. They started their business in the first place to be able to have enough money to spend more time with their loved ones. Choosing to not stress about being held up at work and missing their daughter’s dance recital or their son’s birthday. And in turn can easily whisk away their significant other for a one week cruise with no worry of falling behind on work…
Or missing that job promotion they’ve been trying to get.
They have the liberty of time to engage in volunteering activities and give back to the community.
As an employee keeping the job that pays us can sometimes distract us from the things that really matter in our lives. Which unfortunately puts us against our will in the “selfish” box ourselves.
People with an entrepreneurs mindset don’t just keep earning throughout their lives… Their business keeps generating income throughout the lives of their children and grandchildren. They give their descendants the gift of better education, comfort, and overall a better life. If we take out our biases from the equation, isn’t this an act of selflessness in its own right? Most of these entrepreneurs retire healthy and well, and leave behind a legacy for their family that keeps them set for life. Unfortunately many employees often leave their families with an inheritance of debt.
I hope that by now the blinders have come off and that we’ve together shed some light on the impact of mindset. Do you see now that having an entrepreneurs mindset will help you achieve an abundance in wealth? It offers you the opportunity to live the life you have always dreamed of…
Spend more time with loved ones, be content with your life, and have enough money to help those in need and contribute to a better world. But all this fades in contrast with the idea of leaving your family with enough to live a good life. If you’d like to learn more about entrepreneurs mindset you could check out the following posts:
- How To Develop An Entrepreneur Mindset
- A Journey Inside Millionaire Minds
- How To Make Your First Million Dollars In 2020
I’d like to hear your thoughts and questions, leave them in the comments below and let’s connect.
Evolve Your Wealth,