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Do you have a Billionaire’s Mindset?

The wealthy buy luxuries last, while the poor and middle-class tend to buy luxuries first. Why? Emotional discipline. “

 

Robert Kiyosaki

Don’t we associate people who wear Prada, Gucci, Armani and more, as the wealthy class? They certainly belong there, but this depends on the mindset.

The billionaire’s mindset.

Have you heard about the lifestyles of the wealthiest people on earth?

Wealthy people and their lifestyles (CNBC, 2017):

  • Warren Buffet, the CEO of Berkshire Hathaway, said that he doesn’t spend more than $3.17 for breakfast and drives a Cadillac.
  • Mark Zuckerberg, the CEO and founder of Facebook, drives an Acura TSX because it is, “safe comfortable, and not ostentatious”.
  • Alice Walton, the heiress of the Wal-Mart empire, drives a 2006 Ford King Ranch.
  • Kevin O’ Leary a star and investor of ‘Shark Tank’, says he doesn’t buy ‘fancy coffee’ for $2.50 because he knows it can be made for less than 20 cents. “I drink coffee, one cup every morning,” he explains. “It costs about 18 cents to make it, and I invest the rest.”

“I don’t buy a lot of crap. I buy good stuff that I need, and I invest the rest, and it works. Try it sometime.”

 

Kevin O’ Leary

What does this mean?

This is the now vs future mindset! According to financial post, there are 12 million millionaires in the world but only 2,325 billionaires. Looking at their lifestyle many people wonder, ‘Why?’ The simple answer would be that they think of the future compared to the present. They want to spend on the resources that will give them good returns or where they think it is meaningful. This directly relates to Robert Kiyosaki’s quote which states that wealthy people buy luxuries last.

In my opinion, I feel people who inherit wealth or get it through means that doesn’t involve hard work, usually opt for luxuries quicker. But self-made entrepreneurs usually have a billionaire’s mindset, which involves spending less on luxuries or on products that have low or no rate of return.

What is emotional discipline and how does it relate?

Leadership Expert, Charles C Manz. Ph.D suggests that we shouldn’t let our emotions dominate us. He further suggested that we should control them and direct them into constructive channels. Emotional discipline according to him is the ability to choose how we feel.

How does one discipline their emotions?

According to Emotional Discipline: the power to choose how you feel, there are a few things to review when making a decision (Charles Manz, 2003):

1.     Cause – Why are you making the decision in the first place? What is the cause? What are you feeling and what is the root of it? Is the decision really worth it?

2.     Body – Are your emotions causing any physical distress? Are you feeling a sensation in your body while making the decision? What is your gut telling you?

3.     Mind – Identify your thoughts. What are you going through? Is your self-talk negative or positive? For example, are you telling yourself, “I shouldn’t do this because I will mess up in front of the clients!” or are you telling yourself, “I can, and I will!”?

4.     Spirit – Determine what part of yourself is ignited by the decision which is about to be made. Your ego? Or your healthy spirit? Are you buying a Bentley with your healthy spirit or purely to feed your ego?

Once this self-review is completed, you can re-frame your mindset. If you were initially basing your decisions on your emotions, now is the time to come out of the emotional phase and take decisions practically. It is not about what looks good or feels good, it is about what is good for your future.

I have dealt with many clients who based their business decisions purely on ego and revenge, we helped them turn their setbacks into goals by setting milestones and by future-proofing their businesses.

Emotional discipline is beyond buying cars, coffees or luxuries, it is about having the right mindset to do what is right for you without being carried away by various emotions.