November 11, 2016

As an “Abundant Life Coach” I get asked about the meaning of “financial abundance” very often. What this means to you can be the difference between living the lifestyle of your dreams, or settling for something less than your dreams. I want you to live the life of your dreams!

Here, then, are 5 Essential Factors of Financial Abundance:

“The Abundant Mindset”

Thousands upon thousands of books, articles, media, programs, and so much more have been produced that discuss the awesome power of our minds, and the influence of our thinking upon our lives. It is difficult to say enough or emphasize enough that truth. As I see it, we are exactly as we think.

In my work, I recommend the adoption of an “Abundant” mindset. This means so much more than finance or money, however, for the purposes of this article, I will discuss abundance only as it applies to the world of money and finance.

A financial abundance mindset means enjoying an abundant amount of money, and yet not allowing greed. Greed does not work (sorry, Gordon Gekko). Of course “financial abundance” will be a relative concept; it will probably mean something different to each person. Greed, however, is fairly obvious; it is almost like knowing (within your mid or heart) the difference between right and wrong.

Further, a financial abundance mindset means having the monetary means or resources to enjoy an abundant lifestyle, yet balancing your financial wealth with philanthropy and generous giving (see point 4). When one’s personal motives are clearly defined and one’s goals are aligned with those motives, then financial abundance becomes clear.

“Specialized Knowledge”

The largest difference between the rich and poor (or the “haves” and “have-nots”) is knowledge. Or, more specifically, the largest difference is a specialized knowledge; meaning that they have the “right” knowledge and also know how to use that knowledge to their advantage. In other words, specialized knowledge is the information or data itself, coupled with the wisdom to know how to use the information or data.

For many, specialized knowledge is an academic education such as medical or law school, while for others this might mean computer programming, aviation repair, or something. Further, many of those with a financial education know how to leverage their own money to make more money. Obviously the point is that specialized knowledge translates to earning ability.

“The Power of Compounding Interest and Investing”

For many people, diligent savings and investment of a consistent percentage of income over considerable lengths of time has lead to financial abundance. I would certainly add that economic factors always play a significant role with regard to risk in investments. Even so, living well within one’s means while investing and saving can very often lead to financial abundance.

“Generous Giving”

Generosity does not necessarily mean giving away or donating money. Mr. Zig Ziglar has said: “If you can dream it, then you can achieve it. You will get all you want in life if you help enough other …

This is the second in a series of articles based on the groundbreaking best-seller “Rich Dad, Poor Dad” written by Robert Kiyosaki. As stated in the first article, the book compares the mindset of Kiyosaki’s father-who held several degrees and an important position in the government, but struggled financially–, with the mindset of his best friend’s father-who never even finished high school but left his son a financial empire. In his book, Kiyosaki explains that the mindset held by each of these two men, his “poor dad” and his “rich dad”, was largely responsible for each man’s financial destiny.

The following quote by T. Harv Eker, author of “Secrets of the Millionaire Mind”, refers to the concept of a rich person’s mindset: “Rich people have a way of thinking that is different from poor and middle class people. They think differently about money, wealth, themselves, other people, and life.” Kiyosaki expounds this same principle in “Rich Dad, Poor Dad”.

Below you will find seven mayor differences between the “poor dad” and the “rich dad” mentality:

1. The “poor dad” mentality states that your wealth depends on your family of origin. That is, to be rich you have to be born rich. “Rich dad” espoused the view that being rich or poor is something that you learn. You can learn to think in ways that will support you, and you can raise your financial IQ by reading books on finance, talking to financially successful people, and attending seminars and lectures. When you have the right belief system and the necessary knowledge on how to create, build, and protect wealth, you will become rich even if you were not born into a wealthy family.

2. “Rich dad” taught Kiyosaki that he should get a job to learn and to acquire the necessary skills so that he could go on to start his own business. “Poor dad” saw his job as his source of income for life. While “rich dad” taught Kiyosaki to strive to become financially independent, “poor dad” taught him to depend on his employer for his financial well being.

3. When faced with an opportunity, “rich dad” would ask himself: “How can I afford this?” This forced his mind to think and to come up with creative solutions to be able to take advantage of the opportunity that had presented itself. Instead, when presented with an opportunity, “poor dad” would dismiss it by saying: “It’s too bad I can’t afford this.”

4. While “poor dad” stressed scholastic education, “rich dad” always stressed financial education.

5. For “rich dad” the main cause of poverty or financial struggle was self-inflicted fear and ignorance. “Poor dad” blamed the economy and the job market. That is, “rich dad” always took responsibility for himself and felt that he created his circumstances, while “poor dad” often felt like a victim of the outside world.

6. As for risk taking, “rich dad” taught Kiyosaki to learn to manage risk. “Poor dad” taught him that when it came …