TC&MN # 26 How my IPO journey and centi-millionaire insights reshaped my wealth strategy (and how it can do the same for you)

The Centi-Millionaire Money Mindset Framework for Growing Your Net Worth

In tech, we get good at making money but soon realize that managing and growing are other skills.

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.

I was taught to look for patterns of success and how to reverse engineer how they got there. So I started to study the ultra-wealthy.

To manage and grow your wealth, it is essential to study the centi-millionaires who are growing and managing their wealth well.

Understanding and adopting their mindset toward money is crucial. The money mindset is essential because it directs your 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 centi-millionaires 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 from observing centi-millionaires, which can help tech employees like you strategically increase your net worth.

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 was a direct result of 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.

It has allowed me to expand my network into building deep relationships with people on the same journey and some on a much higher level than I am now.

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.

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