Mindset Is Everything: The Key To Investing Success
“Get your mind right son!” This is what I’d hear each time I stepped into the gym when I was living in South Louisiana from one of the “regulars”.
I was fresh out of dental school and didn’t know what he was really trying to do…I just thought he was being funny.
It took years of trials and tribulations to realize that he was trying to get me to focus on changing my frame of mine. And he was exactly right. If you want results in life, the first step is knowing that:
Your mindset is everything.
Don’t Miss Any Updates. Each week I’ll send you advice on how to reach financial independence with passive income from real estate.Sign up for my newsletter
What Is Mindset?
Mindset is nothing more than your perception of the world around you. In other words, it’s your beliefs, emotions, assumptions and thoughts that run around your head on a daily basis.
Over time, this collection of views is what shapes habits thus dictating your decisions, actions and how you see yourself and others.
Research shows that our mindset can actually influence our outcomes.
Stanford psychologist Carol Dweck has performed numerous studies about the mindset.
Her main conclusion is that some people have either a:
- growth mindset
- fixed mindset
Man, I wish I’d learned about the different types of mindset and had some type of “mindset training” when growing up.
Especially in high school.
Back then as a teenager, it was so easy to give up if failure or mistakes were made. I didn’t have a strong mindset.
The internet was non-existent back then so mindset resources weren’t available. The only way we were exposed to developing a right mindset was from a teacher or coach.
My coaches growing up (football, basketball and baseball) would motivate us and tell us to never quit but that was more for team play instead of individual performance.
Looking back, my first encounter with someone with a positive growth mindset was watching Rocky Balboa overcome adversity each time he fought a new opponent. Even though he wasn’t the biggest, strongest or quickest boxer, he always had the perseverance and work ethic to somehow win.
From Clubber Lang to Apollo Creed or Ivan Drago; Rocky somehow always pulled it off!
A person with a personal growth mindset believes in achieving whatever they desire with education, practice and persistence.
They don’t quit when they fail and learn from those mistakes and failure.
A growth mindset person embraces mistakes and flaws for growth and accept setbacks as part of the learning process to reach goals.
Those who adopt a growth mindset are more likely to:
- Embrace lifelong learning
- Believe intelligence can be improved
- View feedback as an opportunity to learn
- Put in more effort to learn
- Believe failures are just temporary setbacks
- Willingly embrace mental challenges
A person with a fixed mindset believes that everything they have (talents, intelligence, etc.) is, you guessed it, fixed.
These individuals think that because they’re born with certain abilities and if they can’t accomplish something (no matter how hard they work) then there’s no room for change.
Because of this type of thinking, they typically don’t try hard, give up easily and are intimidated by other’s success. They don’t see talent and intelligence as something that can be continually developed.
Those with a fixed mindset are more likely to:
- Feel threatened by the success of others
- Believe intelligence and talent are static
- Avoid challenges
- Have a negative mental attitude
- Ignore feedback from others
- Easily give up
- Believe putting in effort is worthless
- Avoid failure
- View feedback as personal criticism
Why Mindset Is Everything – Especially With Investing
After studying ultra-wealthy people, I’ve come to realize the many different types of lens they view life through.
For instance, when the world began shutting down in 2020, they immediately started thinking about what a lot of people would need in order to survive vs thoughts of fear and panic.
This type of thinking led to the formation of new products and services while the masses were worried about hoarding toilet paper.
It’s all about the mindset.
No matter what you want to accomplish, mistakes and set backs will be encountered.
Sacrifices have to be made but that’s part of being successful.
When I began learning about real estate investing, most of those already successful mentioned they started with getting in a right state of mind.
For me, I’d been taught that owning real estate was only for the rich and difficult to break into. But conference after conference, most speakers stated they all started by changing the way they thought about money and then were able to approach investing in a different manner.
They understood that it’s virtually impossible to master a new skill WITHOUT mistakes. And as long as they continued learning from them, that was the KEY to success.
Remember, your mindset influences what you can and can’t achieve, assumptions about what is possible and the goals you set for your future.
If you harbor a fixed mindset and want to invest in real estate, more than likely you’ll never start because you think it’s too hard. Quitting is much easier to do than trying.
3 Reasons Why Your Mindset Is Everything
#1. Can turn failure into fuel
Those that view failure as a roadblock will have a hard time accomplishing personal goals. If there’s something you’ve been trying to achieve yet have been reluctant to pursue, more than likely it’s a fear of failure.
“Failure is simply the opportunity to begin again, this time more intelligently.” – Henry Ford
Having a healthy mindset helps to find ways to work through huge challenges to make things happen.
When it comes to failing, Thomas Edison comes to mind regarding his thoughts about creating the lightbulb.
He said, “I have not failed. I’ve just found ten thousand ways that won’t work. Many of life’s failures are people who did not realize how close they were to success when they gave up.”
As a practice owner and entrepreneur, I realize that failing is part of the process. I use this failure to stay motivated and set goals to keep moving in the right direction.
#2 Help develop strategic thinking to solve problems
Most people go through life only thinking about what they don’t have or the problems they’re facing. If this is where you focus your energy and time then nothing can be done to fix it as you only see the problem.
“Problems cannot be solved at the same way and level of consciousness in which they were created.” – Einstein
To be an entrepreneur is to be a problem solver. The first one that solves the problem wins. Once you obtain a mindset that seeks solutions and avoids focusing on problems, that’s when your life starts to change for the good.
#3 Be successful
Being successful is no longer about spending 20+ years to specialize in a career. This path doesn’t guarantee you anything as the world is constantly changing.
Many of the companies and jobs that existed a few years ago won’t in the future (i.e. Blockbuster). The key is becoming adaptable and developing the tools, skills and knowledge that will be needed for the future.
As a real estate investor, I’ve learned that more people are moving away from owning a home and renting instead. Some of this is due to astronomical home prices but also millennials favor renting so they can pick up and move at any given moment.
Overtime I’ve had to train my mind to be flexible to respond to changes and adapt to the unknown.
If you want to have a competitive advantage then training yourself to think, adapt and act will help bring success.
When it comes to obtaining success and even happiness, then your mindset is everything.
The right mindset will allow you to be more confident and ready to take on any challenge as you’ll realize that failures allow you to make better decisions moving forward.Join the Passive Investors Circle Subscribe To My Youtube