How a Growth Mindset Can Increase Your Wealth

Imagine a world where there was a recipe you could follow to get rich.  What ingredients do you think would feature in it? A high-paying job? A diversified investment portfolio? Disciplined saving?

Introduction to Growth Mindset

Why are some of us crippled by failure when others take it in their stride? Why do so many people struggle with minor setbacks when others rebound quickly from the direst of straits? And why do some people settle for mediocrity when others can't accept anything less than perfection?

What Is the Difference Between Growth and Fixed Mindsets?

With a fixed mindset, you believe your talents, skills, abilities, intelligence, and character are fixed. You think they don't change throughout your life and thus perceive talent (i.e., what you're born with) as the key to achievement. As a result, if you can't do something, there's little point in trying. In essence, you're resigned to your fate.

Embracing the Growth Mindset in 4 Steps

That begs the question: how do you develop a growth mindset around money if you've spent forever thinking your skills and abilities stay fixed throughout life? When you shy away from challenges because a) you're afraid of failure and b) making an attempt seems pointless in the first place? Here are four strategies to get started.

1. The Power of Yet

"I can't invest; I don't know how." "I don't know how to get out of debt." "Budgeting doesn't make sense to me." "I don't understand how to save money each month."Do any of those thoughts sound familiar? A simple and powerful way to shift your perspective is to put "yet" at the end of each sentence. 

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