4 Steps To Revolutionize Your Financial Mindset & Money in 2022

1. Develop a Growth Mindset

The first thing that you need to do to revolutionize your financial mindset and money in 2022 is to cultivate a growth mindset. A growth mindset is a mindset that believes that talent can be significantly developed and improved upon with hard work, dedication, and guidance from others. People who have a growth mindset tend to achieve more than people with a “fixed mindset.” A fixed mindset is a mindset in which a person believes that talent is innate and fixed and cannot be significantly developed.

By adopting the growth mindset, you can help to put yourself in the best position to embrace hard work, persistence, and growth over time. Most people who become independently wealthy have to overcome many challenges and have to work extremely hard to succeed. Don’t expect the road to be easy, but obtaining higher levels of wealth can happen for you if you work hard enough and adopt a growth mindset.

2. Aim Higher & Don’t Settle for Less

A lot of people have the potential to reach much higher levels of success than they actually do. Part of the reason why many people fail to reach their full potential is that they don’t aim high enough and they settle for less than they should. Don’t be one of these people! Set your goals higher. Imagine the life you truly want, where you have financial abundance and are free to travel anywhere, vacation at your leisure, be your own boss, and have true financial freedom. Stay focused on these goals and don’t stop chasing them until you achieve them. If you work hard enough, you just might be able to succeed.

To prevent yourself from settling for less, you should surround yourself with people who are on a similar journey as you are and who also have high goals. Reduce the amount of time you spend with people who have settled for less in life. Friends can have a very strong impact on us, so make sure that you surround yourself with the right influences.

3. Invest in Multifamily Real Estate

For many people, investing in multifamily real estate is one of the absolute best things that they can do to improve their financial circumstances. There are many reasons why this is the case and why multifamily real estate can be a significantly better option than other types of real estate, such as single-family homes for investing purposes. Here are some of the top advantages of multifamily real estate investing:

• Cash Flow

Multifamily properties tend to generate significant cash flow year in and year out.

With multifamily real estate investing, you can become an owner of a property with 300, 500, or even 600 units or more. This prevents you from having to go and obtain many different loans to obtain many different properties, as you would have to do with individual commercial properties or single-family homes. While $100,000 could secure you a loan for a single-family home, that’s only one “door”. Why buy 1 door when you can own 600? This makes it easier to scale multifamily real estate investments and grow significant wealth.

Many multifamily real estate properties tend to produce stable returns over many years. In fact, the average annual return for multifamily real estate ranges from 9.6% - 10.3% or even higher. The main reason why multifamily real estate investment returns are so stable is that people always need a place to live, no matter what is happening in the economy.

With multifamily real estate, it is possible to make your investments truly passive. This is because you can invest through a multifamily syndicator which manages the investments and properties on your behalf. By investing with a multifamily syndicator, all you have to do is provide the money upfront, and they will take care of all of the details, allowing you to have a truly passive source of income.

There are many unique tax benefits associated with investing in multi-family real estate, which is why nearly all very wealthy investors include real estate in their portfolios Some of these benefits are deferring capital gains tax through cost segregation, 1031 exchange tax deferments, and depreciation recapture. You can learn more about these tax benefits through our blog on the tax benefits of multi-family real estate investing.

4. Define Your Why

Once you know your why, it is significantly easier for you to deal with the how. You need to find the things that motivate you so that it can feed your fire throughout the entire year and beyond to keep you working hard and focused. For some people, the why is that they want to create a better life for their family. For others, it’s because they want to be able to take three months off per year. Some people are simply motivated by competition and want to make more money than their spouse, their friends, their siblings, etc.

Your why is going to be something extremely personal to you. If you don’t already know what it is, then we recommend taking some time to think deeply about it. What do you want most, and why do you want it so bad? Once you figure this out, you will be way ahead of the game. 

Conclusion

If you work hard enough, and if you make the right decisions, it is definitely possible for you to improve your financial mindset and money in 2022. Each year, there are people around the world who dramatically improve their financial situations because they make changes to the way they approach their jobs, investments, saving habits, spending habits, etc.

If you want to be wealthy or wealthier, then you need to start developing a growth mindset, aiming higher, investing in multi-family real estate, and defining your why. By doing these things, you can turn yourself into a financial warrior who is prepared to win the battle for financial freedom.

You should also be well aware ahead of time that that the journey to higher levels of wealth is often marked by challenges and difficulties. So, if you too face challenges on your journey, this is normal. When you encounter these things, don’t give up! Just regroup and find a way to overcome them. The key is finding solutions and continuing to learn and grow from them.

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