Over the course of this multi-part lesson, you will learn all about mindsets. The two primary mindsets that we all have are “The Growth Mindset” and “The Fixed Mindset.” You will learn the difference between the two and how to move away from the one that holds most people back and towards the other that fostered the success of people like Elon Musk, Steve Jobs, and pretty much all of the world’s most successful people.
Though, in terms of achieving success, our mindsets breakdown further beyond the two primary mindsets. The most successful people in the world also handle stress and view failure and risk taking differently than the rest of the world.
Most importantly though, you will learn the difference between True Wealth and Monetary Wealth in part one of this mindset lesson.
“I would rather be poor and happy than rich and miserable.” As I travel, I often find myself expressing this sentiment to people I meet along the way. Afterall, what would be the point of having all the money in the world if you’re miserable despite it?
I suppose if you are miserable, it would probably be better to be miserable and rich than miserable and poor. And, it would of course be preferable to be rich and happy than to be poor and happy. But, the truth is, financial wealth is not actually what most people truly desire when they say that they want to be rich. As much as we might tell ourselves that, what we actually want is to be happy without any financial concerns looming over our lives.
At some point, we have all known someone, maybe you even are that someone, who has said, “If only I had a million dollars…” or even just, “If only I had more money, all of my problems would be solved.”
If that were true, why do most people who win the lottery and other people that suddenly amass a great fortune, end up worse off then they were before?
This is because, despite what most people believe, money does not actually equal wealth. At least not “true wealth.” Nor does it buy us our happiness.
Though not true of all, some of the monetarily richest people in the world are also the most miserable. As Douglas Kruger says in his popular talk, How to Escape Poverty – ‘Is Your Thinking Keeping You Poor?,’ “If you’re a horrible person, a rich version of you is going to be a horrible person who’s able to do more. If you’re a good person who likes to help others, a rich version of you is going to be an amplified version of that.”
So, the question that comes up is, can you be both monetarily wealthy and truly wealthy at the same time? Absolutely. But, people who achieve true wealth, begin to realize that gaining excessive monetary wealth becomes less important.
Further on in this program, you will learn many different ways to achieve monetary wealth. The program will also help you figure out which options for achieving monetary wealth are best for you. But, before you start to think about becoming monetarily wealthy, you need to learn how to be truly wealthy and how the pursuit of true wealth will actually help attract monetary wealth into your life.
True Wealth vs. Monetary Wealth
The meaning of monetary wealth is likely pretty clear to most of us. In simple, dictionary definition terms, “It is to have a great deal of money.” With a wealth of money you are able to buy all of the things that money can buy. People who are monetarily wealthy tend to accumulate valuable possessions and spend their money in ways that people who are not monetarily wealthy can not afford. That’s monetary wealth in a nutshell.
True Wealth, on the other hand, doesn’t rely solely on the amount of money you have. With only monetary wealth, if you were to suddenly lose every penny you had, you would no longer be wealthy and it would be near impossible to regain it without any form of true wealth to back it up. This is the tragedy that people who inherit a large sum of money or who win the lottery experience when they lose everything but had never built up any true wealth.
Unlike financial wealth, true wealth is not disposable and cannot easily be lost. Once you gain it, not only will it not deplete, but it actually builds upon itself the more you use it.
So, what is true wealth then?
True wealth is your personal value as an asset to yourself and to others. It is the accumulated value of your knowledge, experience, abilities, health, quality of relationships, and the way you view yourself and the world around you. More simply put, true wealth is the value of you!
Your Knowledge and Experience
We naturally fear the unknown. Fear is the strongest form of control and keeps most people captive from living the lives they desire. We all desire more freedom in our lives, but money is not the key to freedom. In itself, money does nothing to move us away from our ignorance and fear of the unknown. The two things that free us from fear are knowledge and experience. They are the two real keys to actual personal freedom.
Knowledge, experience, your personal abilities are all highly marketable assets. By honing any one of these, an individual can support the basic needs of their life. You can use them to get jobs or trade them for whatever you need. The best thing about them is that these are the assets of true wealth that never run out. The more you use them, the more they grow, and the more valuable they become.
Health is quite simple. What are we without our health? Our health is practically everything. Our health and strength allows us to run, jump, breath, think properly, protect ourselves and others, fight off disease and illness, and enjoy all the luxuries of freedom. Without it we are held back by the limitations of our own physical and mental weaknesses.
If you maintain your health, you will enjoy the benefits of a healthier, happier life. If your health is above average, you can share, trade, and market the value of your knowledge and experience on how to gain and maintain health with others in exchange for any value they have to offer in return.
Quality of Relationships
Many people who foster a monetary wealth mindset over a true wealth mindset, value the number of their relationships over the quality of their relationships. The fault in this is that the more relationships you try to maintain, be them friends, family, romantic, or business related, the fewer you build strong bonds with. By focusing on the quality of fewer relationships, you will be able to better filter less trustworthy people out of your life and keep those who add value to your life closer. While the process may not be simple, by filtering out the people who decrease value from your life and keeping those who add value to your life closer, your personal value, quality of life, and overall happiness will grow and further build up your true wealth.
Wealth Mindset vs. Poverty Mindset
While all of the above are important for achieving true wealth, the most valuable assets to your wealth are the mindsets through which you view yourself and the world. In addition to all of the other mindsets that will be covered throughout the multiple parts of this lesson, you must also understand the importance of nurturing a general wealth mindset over a poverty mindset.
People that are not born into wealth very rarely gain and keep wealth because they were not raised with a wealth mindset. Families that live in poverty tend to discourage talking about money. This tends to stem from the belief in sayings such as, “Money is the root of all evil,” which is actually a misquote of the original phrase, “The love of money is the root of many kinds of evil.” The original says something very different about money than the saying that most people are familiar with. There is nothing evil about money in itself. It is a person’s view of money that leads them to either benefit or detriment from it.
People with a poverty mindset also tend to view wealthy people as if they are a different species. This fixes in the mind the belief that a person from poverty will always be different than people with wealth. It creates an almost indestructible wall between people of poverty and the achievement of wealth.
Instead of viewing wealth as something only certain people can have and rather viewing it as a mountain to climb, this transforms our perception of the attainment of wealth into something that is still very challenging yet attainable, and with a lot of gradient in between.
People with a poverty mindset think that they want to win the lottery or come up with the next great idea that gets them instantly rich, but without the knowledge and experience of being wealthy, they are more likely lose everything and end up worse off than they were before. This is why, the intelligent route to wealth is to climb the mountain, learning and gaining experience with more wealth at every level along the way, as opposed to breaking through that nearly indestructible wall only to discover the sheer edge of a cliff on the other side.
If you focus on building your own personal value and adopt a true wealth mindset over a monetary wealth mindset, you will live a happier, healthier, more fulfilling life. You will build a wealth of knowledge, skills, and experience. You will gain more freedom, benefit from stronger relationships, and you will gain easier access to all the resources you will ever need. You be a highly valuable individual, with or without money. This will attract other valuable people into your life with whom you will build off each other’s wealth. And as such, by wholeheartedly pursuing true wealth, monetary wealth will follow.