Personal Finance

Quick question: What is the first thing that comes to mind when you hear the words “millionaire mindset?” Is it the various books about money and business tips, probably “Rich Dad, Poor Dad” by Rober Kiyosaki or “The Art of the Deal” by (future US president) Donald Trump? Is it an acquaintance who suddenly invites you for coffee, and then tries to get you into this glutathione-selling pyramiding scheme? Not exactly. To think like a millionaire is not the same as to think about being a millionaire.

It’s NOT all about the money

Far from all those money-oriented things we initially think about, the concept of a millionaire mindset has less to do with “millionaire.” When he was once asked about the driving force behind his two NBA championships with the Detroit Pistons in the late ‘80s, basketball legend Isiah Thomas said, “The secret of basketball is that it’s not about basketball.” He then explained that the heart, teamwork, and willpower that he and his group exhibited on their way to success defined the championships more than their combined talent. Now, what does this have to do with a millionaire mindset?

In other words, success in basketball, or in just about any other field, is not about the actual target. The key term in millionaire mindset is actually the mindset. We don’t have to be millionaires first to be able to think like one; it’s more likely the other way around. In her book “Mindset: The New Psychology of Success, renowned psychologist Carol Dweck talked about the two different mindsets that a person has: the fixed mindset and the growth mindset. Now, before we proceed, guess which mindset is closer to a millionaire mindset *cue in GoBear staring at you while waiting for an answer like Dora does every time she asks a question.

Dweck explains that the fixed mindset is possessed by a person who thinks that success is based on a person’s innate talent, while the growth mindset is seen in a person who thinks that success is based on self-improvement, effort, and determination. (By the way, if you guessed that the growth mindset is closer to a millionaire mindset, you win, and here’s your prize: GoBear says “You’re cute.”)

Mindset matters for (and before) money matters

Applying what the psychologist and the basketball player just said on our topic, the millionaire mindset is not about thinking about money. It’s about having a right attitude regarding chances and opportunities to earn money.

For instance, in about a month’s time, you will receive your hard-earned Christmas bonus. A person with a fixed mindset would see it as a cash bonus and think of where to best spend the money so that he can get the most out of it. Meanwhile, a person with a growth/millionaire mindset also thinks about getting the maximum value out of the bonus money, but with a plan to growing it beyond its current amount.

The fixed mindset person, who thinks like he won a million bucks, is more likely to consume the bonus on great shopping deals and some other fun stuff. The growth mindset person, who would more likely think like a millionaire, is more likely to seek ways to improve that current pile of cash into something bigger; it could be an investment or an enrollment into lessons that give him new skills to make him more valuable. This millionaire mindset of seeking ways to grow (and it doesn’t necessarily have to be money that’s being grown) puts him in a better position to transition from a person who would think like a millionaire to a person who is actually a millionaire.

Do you want more money-wise tips to add to your millionaire mindset? Explore more financial wisdom blogs here at GoBear Philippines.