How to adopt a wealth mindset for financial independence

Updated in January 2020

Learn how to adopt a wealth mindset to accelerate your journey to financial independence. I am convinced that nearly everybody has the capability of achieving financial independence and early retirement (FIRE). Many people have doubted this; after all, who can afford to save up 100,000s of pounds.

But anyone can join the fast track to financial independence and learn how to adopt a wealth mindset. This is directly applicable to everyone, no matter where you are in your life, as long as you are not severely disabled or nearing retiring age.

To ensure Monethalia remains free of charge, this post contains affiliate links.

What is financial independence and early retirement (FIRE)?

Being financially independent means you make enough passive income that you never need to work for another second in your life. You can thus retire in your 30s or 40s and spend your time doing what you like. You do not need a million to achieve FIRE but you will likely need to save up money for a while.

Read more about FIRE and discover which actionable steps you can take today.

What is a wealth mindset?

A wealth mindset is the separator between the rich and the poor. People with a wealth mindset know how to use their money efficiently and make the most of it, irrespective of their starting point in life.

How to adopt a wealth mindset for financial independence

1. Change your thought process

If you are staring at the screen right now thinking you cannot achieve FIRE, you are right. You need to change your thought process first by adopting the mindset you need to achieve FIRE.

Instead of “it is impossible” try thinking “it may be possible”. Instead of “I cannot do this” think “I can try doing this”. If you start with this mentality, then over time the “maybe” and “try” will turn into “definitely“ and “will do” on their own.

The first secret of how to adopt a wealth mindset is to challenge your current attitude.

2. Get informed about personal finance

Reading and becoming immersed in the topic is an important step when learning how to adopt a wealth mindset. When you do this, you will realise that there are plenty of ways to increase your income and reduce your spending.

Often, information is available for free through blogs or books from the library. I have created a list of nine financial independence books that will change your life. In addition, I highly recommend reading Tim Hale’s Smarter Investing: Simpler Decisions for Better Results.

3. Surround yourself with the wealth mindset

Learn from others how to adopt a wealth mindset

A powerful method is to surround yourself with the right people. Even if you are not as wealthy or successful as them, just by spending time with them, you will naturally adopt a wealth mindset. This includes listening to their podcasts or reading their posts, in case you do not have rich friends lined up.

This approach is really effective because by nature, humans want to fit in. Back in the old days, being excluded from a social group meant death. A single human could not defend himself against bears, wolves, lions or whatever else was roaming around. Hence, humans quickly adapted not to stand out within their social group, as to not increase the risk of exclusion.

4. Write about your JOURNEY to adopt a wealth mindset

Taking this whole “surrounding yourself” thing one step further, blogging about money, financial independence or how to adopt a wealth mindset is a great idea for two (and possibly more) reasons:

People are interested in your perspective

There already are a ton of blogs out there, but it is the perspective that matters. Documenting your journey will be the inspiration somebody else needs to start.

Blogging is a powerful motivator

Having a proven record of your achievements will help you stay motivated through your journey. You have an accountability partner in your readership and a reason to keep going if you feel down.

Blogging also has numerous other advantages, such as earning a passive income each month and developing your communication skills. Learn how to set up your own blog in under 15 minutes.

5. Leave your comfort zone to adopt a wealth mindset

I always imagine my comfort zone as my bed. It is nice and warm and nobody will bother you. If someone does, you can kick them out of your bedroom. Leaving my comfort zone, on the other hand, feels like venturing through the Arctic. It is cold and who knows whether there are food and shelter.

Master life outside your comfort zone

If you try hard enough, even the Arctic can become your new comfort zone. Perhaps you befriend the locals, build yourself a little hut and learn how to hunt. Looking back at your bedroom, would it not feel cramped and limited compared to the wide Arctic?   

Leaving your comfort zone will enable you to see your past limitations, your weaknesses but also your strength more objectively. You will gain confidence from having achieved something that felt unachievable before.

Beat your fears to build a wealth mindset

What is holding you back? Fear. You fear to take the risk because there is no 100% success rate. This, again, is a natural reaction shaped by evolution. Even if your living situation is suboptimal, you are likely to just accept it and over time it becomes the new normal. You may not even notice that your life could be so much better. And if you do, you feel the risk is not worth trying to change your situation.

This is because your most important needs, food, and shelter, are secure, so your brain is not alarmed. In the distant past, this behaviour was advantageous as you were more likely to survive this way.

Realise that your life is not in danger

Let us face it: when was the last time you had to make a decision on which your survival depended? For most people, including me, the answer will be “never”. Changing our lives nowadays is much less risky, but our brains still live in the past. People often talk about “rewiring your brain” and this is what you should do.

How to adopt a wealth mindset for financial independence summary

If you are looking to adopt a wealth mindset, you can start by taking the following steps:

1. Change your thought process
2. Get informed about financial independence
3. Surround yourself with the wealth mindset
4. Write about your journey to adopt a wealth mindset
5. Leave your comfort zone

Learning how to adopt a wealth mindset is a journey and getting there may take some time. Especially in the beginning, it is easy to fall back into old habits so you need to constantly remind yourself of your goal.

If you like this post, help Monethalia grow by sharing it on social media using the buttons below. You can also sign-up to my newsletter by entering your name and email address into the top bar.

Jennifer