Wealth Mindsets Of The Entrepreneur
In this article, I’m going to talk about how people spend a lot of money outside their business, once they have some money coming in.
I have a friend, and he just started making about $6000 a month, for the first time in his life, as an online entrepreneur. He’s living the ‘lifestyle’ now, and we were discussing some stuff recently, and he was saying: “yeh now I have the income, I’m going to start living the lifestyle; I’m going to go the Gucci store, and buy a shirt. I’m going to hang with the Gucci crowd, and they’re going to see I’m part of them, because I’m wearing the attire I’m supposed to wear, to hang out with them”.
Now he thinks he’s this big entrepreneur, with a big ego, and he’ll be with the ‘in crowd’, and they’re all going to accept him, because he’s wearing the Gucci, and Louis Vuitton. The difference between him, and real entrepreneurs like some friends of mine, who make seven figures, eight figures, is that they reinvest almost every single penny back into their business (they are always pretty much broke).
If you read the book about the founding of Amazon, they didn’t make money for ten years. They reinvested everything, and more into the company (they were basically making a loss).
A real entrepreneur who owns a business, and wants long term success (not cash in some checks, and buy some Gucci), they reinvest everything into themselves, by learning new things, by going to seminars, by hanging out with people who have a clue, and joining masterminds. They don’t just go round spending their cash on consumer items.
An entrepreneur, he spends his money, he reinvests some of his money, whereas a consumer spends his money, as if it’s a ham burger, where he gets an instant good feeling, which goes very very quickly, and doesn’t have a long term result.
The different mind-set between an entrepreneur, and a consumer, is very well defined here. You have to get the timing right, to spend money on whatever you want, and when you’re making enough money, you can spend it on whatever you want, and it’s not going to make a dent in terms of your overall money. In my opinion, when you don’t even notice when you spend $200, $300, $400, on a shirt, compared to not spending it, that’s when you can start buying that kind of stuff.
When you don’t even notice the difference in your bank account, when you’re making $100k profit a month, a $400 shirt becomes an unnoticeable expense, because it’s the same as me buying a $20 shirt.
That’s when you can you spend that kind of money, when you’re not going to notice the difference to your bank account, and it’s not going to hurt your business. It’s not going to hurt your vision of the future, because your money, it’s not just cash, it’s not actually a consumer item, it’s also your time, it’s your life force which you’re using to invest in something. I learnt from a different friend, who’s quite successful in business, that I wasn’t treating money with as much respect as I should have (I wasn’t just spending it aimlessly).
My friend said to me: “when you’re giving money to someone, or to something, you need to really appreciate it, really appreciate every moment, and really think about it”. If you treat your money with respect, if you treat it like a good friend or a loyal dog, you’re going to see long-term that you’re going to be more successful in terms of wealth. It’s a mind-set to get you thinking about every little purchase, and treat it as an investment.
If you assume the mind-set of an investor, in your business, you’re going to have your company grow, instead of stagnating, and always achieving the same exact results month after month. You’re going to go from an employee in your company, to owning and running your own business.
You should also check out the book, e-myth revisited, It’s a very powerful book that I started implementing recently, about systems and stuff. The second book you can check out is, Millionaire Fastlane. If you read these two books, they’re going to go into much deeper detail on topics, that I have touched upon in this video. If you have any questions, comment down below.