A Crucial Conversation
We want to spark a dialogue about finance game and the transition from saving to building wealth. Over the past few weeks, we’ve met numerous families who’ve made significant strides by purchasing properties. A notable mention was a young individual, exceptional in his savings and budgeting skills—truly phenomenal. His accumulation and control of finances represented a solid foundation. However, transitioning from a mindset focused on savings to one prioritising net worth presents a substantial challenge for many.
Beyond Savings
When engaging in the Poverty Game, one’s wealth is often viewed through the lens of transactional accounts—savings, checking, etc. This is markedly different when entering the Wealth Game. The focus shifts from mere savings to an emphasis on net worth; calculated by the difference between the value of your assets and their cost. This pivot is crucial, yet challenging for families accustomed to the poverty mindset. Often, leading to a misuse of Poverty Game metrics in a Wealth Game scenario. It’s vital to recognise that the strategies that work in one domain don’t necessarily apply to the other.
The Concept of Comfort Numbers and Hustle
An interesting aspect of financial management is the “comfort number”—a threshold in your bank account that, when exceeded, provides a sense of security. However, the true Wealth Game begins when you’re able to invest beyond this number into assets, pushing you to enhance your hustle as your account dips below your comfort level. This cycle of investment and hustle is key to continuous growth and staying away from the complacency of the Comfort Game.
Investment and Mindset
The journey from your first property to managing multiple assets is a transformative one. It involves significant financial outlay not just for the purchase, but also for subsequent renovations, pushing you to adapt and increase your hustle. The mistake many make is reverting to their Comfort or Poverty Game habits once they’ve stepped into the wealth arena. Preventing this requires a steadfast commitment to investing more into assets and perpetually rolling the ball forward.
The Psychological Game
At the heart of this transition is the battle of mindsets. Behaviours are a manifestation of our beliefs, and those ingrained in the Poverty Game often struggle to adopt and maintain Wealth Game strategies. The key to overcoming this is not just adopting new behaviours but fundamentally changing your mindset to align with wealth-building principles. Success in this game is not a one-off achievement; it’s a relentless pursuit that requires daily commitment.
Surround Yourself with Wealth Builders
A crucial strategy in maintaining your wealth-building momentum is to immerse yourself in circles that embody the Wealth Game. Conversations and attitudes in these groups differ vastly from those in Poverty Game circles. Being around people who discuss assets and investments naturally elevates your thinking and hustle.
Transitioning from saving to wealth building is more than just a financial shift; it’s a comprehensive change in lifestyle, mindset, and the company you keep. If you’re ready to keep your hustle alive, we look forward to seeing you at the top of the mountain.
