- Managing Tech Millions
- Posts
- 7 crucial steps to rebuild how you think about money (and build lasting wealth)
7 crucial steps to rebuild how you think about money (and build lasting wealth)
Change your mindset for the win!
Christopher Nelson
November 12, 2024
👋 Tech Equity & Money News 📈 your go-to source for building wealth with tech equity and managing the money that comes with it.
Every Tuesday, we'll deliver a concise and powerful lesson on building wealth working for equity compensation or on managing your seven and eight-figure portfolio.
Our mission is to demystify equity compensation, investment strategies, and financial independence for tech professionals.
Money Mindset is critical to navigating your exit from the W-2. This week I lay out the 7 key mindset shifts that helped me go from just starting to where I am now.
Also check out the podcast this week as I review the mindset shifts required to trade your time and talent for equity.
Time to Read: 3 Min
Money Mindset -> Reset
The Wealth Building Money Mindset
In tech, we get good at making money but soon realize that managing and growing are different skill sets.
After my first IPO with Splunk in 2012, I oscillated between joy and fear. I felt joy that I had reached this point in my life and career where I reached financial success, but I also felt fear that I would be the idiot who lost it all.
Like many, I was raised not to talk about money, so when I had it, I was not equipped to deal with it.
What I did understand was how to look for patterns of success and how to reverse engineer them. So, I started to study the ultra-wealthy and people who had built significant wealth to understand what worked for them.
To manage and grow your wealth, it is essential to be self-aware of your mindset and relationship with money.
I observed that the ultra-wealthy took time to understand their mindset toward money. Your money mindset is essential because it directs financial decisions and strategies toward long-term wealth accumulation.
Many tech employees fail to grow their wealth beyond what they make due to a lack of exposure to such mindsets or failure to apply them consistently.
Here's the truth: shifting from basic financial knowledge to a ultra high net worth money mindset isn’t just about saving; it's about strategically managing and growing wealth.
Today, I want to share the top lessons I’ve learned that have helped me grow and manage my money, achieve financial independence, and live a lifestyle by design.
Each lesson is a step toward greater financial wisdom and freedom.
Money Mindset Mastery: A 7-Step Framework
This framework systematically reshapes your financial thinking and habits, leading you to significant wealth.
Lesson 1: Prioritize Assets Over Liabilities
It’s easy to get caught up in the earnings and spending cycle.
The true path to wealth involves shifting focus from short-term gains to long-term asset accumulation.
Recognize that every financial decision should enhance your asset base. For instance, choosing real estate investments over luxury cars can significantly impact your net worth's trajectory.
I learned this lesson early in my career by watching mentors who focused on building cash flow and strong balance sheets. Their ability to retire early and confidently directly resulted from this strategy.
Remember, it's not just about how much you make, but how much you keep and grow.
Lesson 2: Embrace Lifelong Learning About Wealth
There's a misconception that once you reach a certain level of success, the learning stops.
This could not be further from the truth. The landscape of wealth management, market conditions, and investments constantly evolves.
It is crucial to stay educated on financial trends and investment strategies.
Every successful financial figure I've followed has committed to continuous learning.
It’s not just about understanding money, but mastering it.
Lesson 3: Control Your Lifestyle Expenses
Many fall into the trap of increasing their spending as their income rises.
This is often short-sighted and can impede proper wealth accumulation.
Real discipline involves maintaining a modest lifestyle even as your earnings increase.
This prevents financial setbacks and ensures consistent wealth growth.
While living in the Bay Area, I saw many colleagues fall into this trap; they built a lifestyle that required the input of salary and equity to maintain. This means they must keep working to fuel that lifestyle.
Hard Choices will give you an easier life; easier choices will give you a harder life.
Lesson 4: Value Health Over Wealth
It’s a common mistake to prioritize wealth accumulation at the expense of health.
The money-over-health approach is fundamentally flawed.
Without good health, the enjoyment and use of your wealth could be severely limited. Too many professionals neglect this balance, leading to regret later in life.
My experience taught me to maintain a rigorous health regimen, keeping me professionally and personally effective while working in tech and beyond.
Lesson 5: Fix Your Relationship With Money
Many people have an unhealthy relationship with money, whether it’s fear of losing it , overspending it, or being embarrassed to talk about it.
If I had not overcome my fear of talking about money with other people, I would not be financially free.
Acknowledging and addressing these issues is crucial.
Learning to get uncomfortable and ask for help allowed me to realign my attitudes and behaviors toward money, paving the way for healthier financial decisions.
Lesson 6: Network with Like-Minded Achievers
The power of a strong network cannot be overstated.
Surrounding yourself with individuals who share similar financial goals can provide support, insights, and opportunities.
Building a network of wealthy, knowledgeable individuals has opened doors, I did not think possible.
My network has allowed me to build deep relationships with people on the same journey and accelerate my learning.
Lesson 7: Mentor Others
Sharing your knowledge not only helps others but reinforces your own understanding and commitment to these principles.
Teaching about wealth has allowed me to reflect on my journey and solidify my strategies.
It’s both fulfilling and beneficial.
To recap, the path to significant wealth is not just about making money; it's about making smart choices with your money.
Remember:
Build and prioritize your assets.
Never stop learning.
Keep your spending in check.
Never sacrifice your health for wealth.
Heal your relationship with money.
Network wisely.
Pass on your knowledge.
These lessons are the pillars of a sustainable approach to wealth.
By implementing these steps, you prepare yourself to have wealth and maintain and grow it sustainably.
Thanks for reading this week.
If you have feedback or questions, just reply, as I respond to all emails.
Tech Equity & Money Talk
Tech Equity & Money Talk is a Weekly Podcast that explores the process of building wealth through Tech Equity and managing the money that comes with it.
If you like the podcast, support us by leaving a review; please do that now! (LINK)
Another mindset shift is when working for equity, you are the asset in the trade for equity.
In this episode, I break down the way you need to reframe your thinking to compound your career compensation compounding.
Check it out now 👇️
What did you think of today's newsletter? |
Here is How I Can Help You
When you are ready, there are 3 Ways I can Help You:
1.) Start up-leveling your knowledge - 🎧️ Follow our Podcast
2.) Get our detailed How To Videos- 📺️ Subscribe to our Channel
2.) Accelerate your actions, work with me 🧠 Book a 1:1 coaching session
Disclaimer: This newsletter is for informational purposes only and does not constitute financial or career advice. Always consult with qualified professionals before making any decisions based on the information provided.