How to build a positive wealth mindset on your road to financial independence‪.‬ Finance & Fury Podcast

Welcome to Finance and Fury. Positive wealth mindset, or a growth mindset for your finances
To start with – lets imagine that you’ve hit the lotto jackpot!
Say you win $20m – it is a lot of money – enough for any person to reasonably retire on So, now that you may be able to be considered FI - what are you doing with your time? Where are you living? And how are you living your life? This might be pretty hard to actually think about for some people - it depends on much time you’ve actually spent thinking about it before If you had $20m of financial resources at your disposal - how would you spend your time? and what would you do? and would all your problems be solved? For a lot of people – these aren’t the focus when it comes to fantasising about winning the lotto – it is on how this $20m would be spent The same goes for FI in general – the focus can be solely on the target of what we need to retire – and not on the rest of the picture – what we will be doing – This is where having a mindset not only to focus on personal growth but also financial growth is very important Going back to the lotto winner - With $20m – if you invested the full balance – you could reasonably generate around $1m of passive income p.a. (assuming 5%) – after taxes – may be closer to $524k of income (not assuming any trust structures are implemented) Does this now mean that this individual is now financially independent? FI is a two-sided problem to tackle First - it doesn’t really matter how much money you have, it more so matters how you much you need to have - what would you do with your independence? And how much would that cost? This first focus is about defining what independence actually is. And that’s an issue to really tackle because if you are just aiming for that million-dollars-a-year of income, and it’s only going to cost you $80,000 then financial independence is almost something that may never be achieved - if you think it’s a million dollars a year This brings in the second part - how much you actually have – or believe that you can have – back to the economic problem – finite resources for the potential of unlimited wants These unlimited wants can get in our way – and cloud our mindset when it comes to FI and wealth Very easy these days with social media and the internet – can see how the top 1% of the 1% live Money provides ability to have independence but creating a picture of what your independence looks like is the best place to start – which is all about having the right mindset in place A trap that a lot of people can fall into when winning the lotto is not being in a wealth mindset when they win the money – think of it as a money maturity – if you have been able to accumulate $3m over time, then getting another $3m lump sum likely means you have the right mindset and knowledge to deal with these additional funds Examples of people who win the lotto - you get a lot of money meeting all your goals for financial independence – if you win $20m you’ve likely got all the FI - but that’s a lot of responsibility in your hands in one day. unless you’ve got the habits formed around money and really fully prepared for receiving that level of responsibility, it can actually go pretty wrong without a plan. It’s actually almost impossible to prepare for - so last minute - to get such a large level of funds and to actually change your mindset and be ready to reach that financial independence If you are going from being broke to now having $20m at your disposal – this can create a very uncomfortable feeling – we are hedonic and revert back to our normal state of being – for someone without money – and if this is their mindset – then their subconscious thoughts can turn into actions to try and get rid of this money as soon as possible Our mindset can be our best friend - or our worst enemy
I’m sure many people out there are familiar with the p