The brain is an amazing thing. Bill Viola had this to say about the human brain: “the human brain is probably one of the most complex single objects on the face of the earth; I think it is, quite honestly.” The brain is such an important thing that our whole being is built around the way we think. It’s so important that a whole field of medicine is dedicated to probing the way the brain works and how it produces thoughts and countless philosophers throughout the ages have tackled the way people think.
Perception, in essence, is vital. For entrepreneurs who wish to embark on their journey to success, it’s important for them to master their thought process and start thinking like an investor.
What sets entrepreneurs apart from others is that many have a consumer mindset. People want to buy things in order to acquire things they believe define them. They want a fancy car to show everyone they make a lot of money or a big house to show off their affluence and wealth. Many think that the way they spend their money helps them become the person they want to be.
Entrepreneurs, on the other hand, have to think like an investor. They realise the value and purpose of things they buy. Famed investor Warren Buffet has many books and articles written about him and rightly so, as he was known for being the world’s wealthiest man in 2008 and has been on the list of the world’s richest people for several years now. You can tell that Buffett doesn’t have a spending mindset when he said there’s nothing material that he wants very much. Buffet is also known as a value investor and thinks carefully about the companies he invests in before taking the plunge.
But how can ordinary people who’ve been bombarded by ads about the latest fancy car and have followed the lavish lifestyles of the Kardashians on TV, shift their mindset from being a consumer to that of an investor? Author Robert Kiyosaki—who wrote the bestselling book Rich Dad, Poor Dad— shared his insights into how people can build a mindset to help them earn and save a wealth of money.
Kiyosaki pointed out that the brain has three basic parts. The left brain is the logical side of the brain and people who use this side of the brain more excel as scientists, lawyers, and schoolteachers. The right brain, on the other hand, is used for creativity. People who use their right side of the brain more excel in creative fields such being a designer, musician, or architect.
What’s important in building a mindset for wealth, Kiyosaki pointed out, is the state of the brain’s subconscious. This part of the brain reacts on instinct and is responsible for our fight or flight responses, as well as for how we relate to others because this part of the brain controls our intrapersonal intelligence.
Controlling the subconscious part of our brain is the key to building a mindset of wealth according to Kiyosaki. It’s the fear of failure that holds back some people from taking risks and going into business. This fear response stems from our subconscious brain and Kiyosaki argues that we can control this part of the brain.
Some people can keep on doing what they’ve been doing for years: go to work and cash in on their paycheques. Howeer, if they want it badly enough, they can make calculated risks and become entrepreneurs. To help people shift their mindset into investors and entrepreneurs, Kiyosaki recommends people to change their environment. They can hang out with other entrepreneurs or investors or read books, as well as attend seminars to increase their financial intelligence. Doing these things will help people control their subconscious brain and start changing their mindset.
From having a consumer mindset, people can choose to be wiser with their finances and become investors. The transition to becoming an investor can be risky but thinking things out carefully will reduce the risks. Investors must also make sure not to put all of their money in their investment and maintain a savings account that still earns interest so they have something to fall back on. Having savings and investments are always wise. No one knows what will happen to tomorrow or the day after. So while doing your best as an investor is crucial, it’s equally important to make sure you’ve got something else to fall back on in case the business goes belly up.
Mark Yasay is a social media enthusiast and a writer for MoneyMax, the Philippines most comprehensive online platform for comparing financial and telecom products. MoneyMax aims to consistently find the best broadband plans, credit cards, loans, and other services and products that suit your needs.