How to have a growth mindset
What makes people successful?
Is it primarily the attributes they are born with or the effort they put in to develop those attributes?
According to Stanford psychologist Carol Dweck, true potential is not limited by your character, skill, or intelligence, but by your mindset.
She calls this the growth mindset: a tendency to believe that you can grow, and those who strive toward this thinking tend to accomplish more.
of those who are categorized at very-high-net-worth were self-made.
Source: Imberg, M., Shaban, M., & Warburton, S. (2021). Preservation and Succession: Family Wealth Transfer 2021. Wealth-X.
The millionaires and multi-millionaires today aren’t primarily those who were born into money. They are the people who believe that consistent effort leads to long-term growth.
Similarly, the biggest impact you can make in multi-generational wealth-building is teaching those who look up to you how to think.
Then, when they do inherit your assets, they know how to handle it.
Here are some tips on how to continue to develop a growth mindset in yourself and model it for future generations:
5 ways to build a growth mindset
1. See challenges as opportunities.
If we avoided obstacles, would we ever grow?
When a baby learns to walk, with each misstep they get back up and prepare for a potential tumble. It’s physically, mentally, and even emotionally taxing on their little bodies, but the struggle is worth it!
When you recognize your own trials as opportunities, you develop growth mindset and prepare yourself for more advanced challenges (and opportunities!) in the future.
2. Celebrate the success of others.
One characteristic of a fixed mindset is believing that success is in limited supply and that others’ achievements threaten your own.
A way to combat this is by intentionally celebrating when others do well. Compliment a coworker on a good idea, send flowers to a friend who was recently promoted, or bring a housewarming gift to your new neighbor and see how it shapes your idea of abundance!
3. Focus on your positive actions, rather than traits.
As you assess yourself, focus on the positive behavior you’re developing over the traits you possess.
“I am smart,” becomes “I am proud of the research I put into that project.”
“I am a hard worker,” becomes “I successfully prioritized my time to accomplish my to-do list today.”
4. Recognize failure, then move on better.
As with most things, fixed and growth mindsets aren’t one or another. Everyone will fall between the two beliefs, and this will change day-to-day, hour-by-hour.
On the days when it seems all goes wrong, you can name those failures, recognize what they taught you, and learn how to make a change to avoid repeating them.
5. Remember growth is a process, not a destination.
Challenges, opportunities, success, and failure are all part of the process, and the balance of these things may not always progress how you want or expect them to. This is normal.
You can keep setting goals, working toward them, picking yourself up when it goes wrong, and celebrating when it goes right day after day, year after year.
In the world of finance, growth won’t always be linear, but you can surround yourself with people who share your values and help you maintain perspective to stay encouraged.
A financial professional is a great source of guidance and inspiration.
If it’s been a while since you’ve connected with your financial advocate, why not give them a call just to catch up?
Or, if you’ve been lacking support in this area, it may be time to start working with a financial professional and begin to implement strategies toward the future you desire.
We’re here to help you take the next step in financial security, confidence, and freedom.