Building wealth requires more than just saving money. You should also focus on making choices that are sustainable long-term, says financial expert Patrice Washington. That includes prioritizing the right mindsets and planning for a financially healthy future.
Washington likes to approach building wealth holistically. Shifting the way you think about money and how you spend or save it is just as important as deciding how much you want to put away, she says.
Here are three mindsets to adopt in order to build wealth, according to Washington.
1. Have gratitude
With the ongoing Covid-19 pandemic, it can be hard to recognize your blessings and have gratitude, Washington says. But it's worth making an effort. "Sometimes we just have to fight to see the good first. That's an attitude that we all need, no matter who you are," she explains.
Staying positive and recognizing your fortunes, no matter how big or small they are, can go a long way toward helping you get your financial future on track.
"Every day I really try to look for something good to just dwell on," Washington says. "I think that allows you to open up space to be more creative, to have more ideas flow in and to really start to brainstorm more about what's possible."
2. Recognize that every dollar counts
We all make small purchases thinking that they will not have a large impact on our finances, but Washington disagrees. All those small, meaningless purchases eventually add up. "Everything really does matter. Every dollar really does matter," Washington says.
"Whenever we're struggling with finances or there's a lot of uncertainty in the marketplace, we start to throw caution to the wind," Washington says. "We are just doing the things that help us feel good, but the things that help us feel good don't always really serve our finances."
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Unimportant expenses, such as subscriptions you never use, should be the first thing you cut when trying to save money or accumulate wealth.
"It's so easy to throw money at those very little expenses. But really, this is when you want to cut down some of the small things that just don't matter," Washington says.
3. Take care of your body
Staying healthy can go a long way toward improving all aspects of your life, including your financial well-being, Washington says.
It may sound unorthodox, but "I really equate your fitness to your finances," Washington says. "That doesn't mean going to the gym, because many of us can't go to the gym in the same way. But it does mean paying more attention to what you're putting in your body."
It is important to make sure you are taking care of yourself and finding new ways to stay active during the pandemic, as well as getting the rest your body needs. "Without health, there is no wealth," Washington says. "Make sure you're taking care of yourself."
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