Fixed mindset vs Growth mindset, why your mindset matters when you are building an investment portfolio.

Hey, have you ever met a real plonker, and then been surprised that they are really wealthy? Many people think that intelligence is the key to growing wealth. Sure some extremely clever people have made millions or billions of dollars. But the reality is mindset has a lot more to do with wealth building than intelligence.

"Mindset" is defined as "the established set of attitudes held by someone." The mindset of an individual will determine their success in all avenues of life. A positive, open mindset that promotes learning and evolving will give you a higher chance of success. A negative, close-minded mindset that refuses to allow change can dwindle your chances of success. It is all about your attitude.

Property investment follows tried and true rules. You would have heard them -location, location, location, you make your money when you buy, not when you sell, rule of 72 etc. There are truths that many people bank on, but there are also unknowns and risks. The interests may go up, the market may go down, tax rules may change.

People who have a fixed mindset look at their unknowns or variables and decide that they know what's best and do not take the opportunity to invest.

People with a growth mindset will seek answers from experts to understand these variables and what they can do to take advantage of them.

Let's have a quick look at the difference of thinking

These little stories we tell ourselves keep us in our place. We need to remember it is our ego protecting us. Maybe the version of ourselves worked or at least was perceived as working, so our ego says - “right, let's stay here. Let’s lock our mindset into this position”. And for a while it does work, but everything in the universe expands and so our world starts to expand, and if our mindset is locked, it becomes tired and stressed trying to hold back. You will have come across people who have a fixed mindset, the older they get the more resentful and bitter they sound when they describe the world.

People with growth mindsets are not perfect, but they do see the world more open and filled with more opportunities.

A growth mindset isn’t as protective. Your ego is not as controlling.  There is a willingness to understand more. You allow yourself to be vulnerable and ask for help. People in a growth mindset can do things better, faster and are willing to learn.

When it comes to building wealth, a growth mindset doesn’t see barriers, it sees opportunities and you will find the right people to help answer questions, and put together sensible plans. People with a growth mindset are not afraid if plans change as they have the tools to adapt and see the change as a way to improve their skill set.

When we talk to clients, we know the people who are not going ahead with wealth building, because they already ‘know it all’ or they don't see themselves living a life larger than the one they have created. It is sad to see them trap themselves through their own limiting beliefs, but we are realistic and know we can’t help everyone. We also can tell the people who will flourish, as they are curious and excited about the world and are not afraid to learn.