16 – Low-Risk Living to Build Wealth

Adopting a Low Risk Wealth Mindset

When you strive to develop a low risk wealth mindset, you’re setting yourself up to build wealth rather than having it disappear with no clue where it went. That means impulse shopping is a thing of the past and you should analyze every purchase you make – even the small things.

Both personal and business spending should be limited to what you need. Jumping at every shiny new object like a new pair of shoes you don’t need or software and plugins that aren’t beneficial to your business isn’t the way to nurture a wealth mindset.

Stick to time-honored methods to avoid financial mistakes that could take years to recover from. When you’re leveraged to the highest point, you won’t be able to take calculated risks and invest when the best opportunities present themselves.

Don’t Spend More Than You Should

One rule of thumb for personal or business spending is to avoid credit unless you can afford to pay cash. It’s okay to build a good credit rating by wisely cultivating the advantages of having it, but don’t simply pay by credit if you don’t have the cash to back it up.

There are so many bright and shiny objects to tempt you to open your wallet that it can be difficult to know which are the best investments. In your personal life, that might equate to a big screen TV or shiny new car and bumping your credit to the max.

Stop Chasing Shiny Objects

In business, you might be attracted to the promises and hype that other marketers throw out to entice you to buy. Some of these are excellent deals and can provide guidance and advice for your future.

Other offerings might sound good, but you find out it’s a bunch of fluff when you download it. Do your research before you plunk down the money or go into debt for software, plugins or to join a mastermind group.

One way to ensure you don’t jump at the latest deal or succumb to an impulse is to delay making the purchase. Don’t let sales people – online or offline – pressure you into signing on the dotted line before thinking about it first.

You may be itching to say “yes” to that advertisement promising overnight success for your online business if you sign up for a product or online class. And that new car may sound like a deal you can hardly refuse until you read the fine print and find out what you’re really paying.

Never think you can’t get the same deal if you walk away and think about it for 30 minutes or a day or two. It’s beneficial to step out of the bubble and see the big picture of what the deal truly entails.

Be Careful How You Spend

Another way to ensure that your budget will remain intact is to deal only with cash. This is a great idea for those who just can’t seem to pass up deals that may or may not be a good idea.

One good method for watching your spending is to open an account designated only for spur of the moment purchases – and cancel the overdraft protection. You’ll have to be vigilant about the balance and careful not to go over.

There’s a thing called FOMO (Fear of Missing Out) that affects many marketing entrepreneurs. If it seems that everyone is jumping on the bandwagon of a good deal, you don’t want to be left out, even if you can’t afford it.

You may be tempted to go on a fun, but expensive trip with your friends because you don’t want to miss out on the experience even though it will take months for you to completely pay off the debt.

Think about the benefits you’ll derive from your spending before you plunk down cash or a credit card and you’ll be on your way to developing a low risk wealth mindset. Sometimes the reward doesn’t outweigh the risk involved.