Our experience in investing indicates that mindset is essential. Its two keys are a positive, optimistic perspective and an entrepreneurial outlook. Together, these powerful attitudes will help you to develop other important traits, including determination, perseverance, the ability to effectively set and achieve goals, and resistance to fear. The sum of all these qualities is an outstanding ability to take action and overcome all obstacles to creating wealth through real estate investing.
There is no question that we live in a land of opportunity. There are many ways to succeed in life, financially and personally, and with the mindset of success there are no limits to what you can achieve. In matters of wealth, happiness, healthy relationships, and ambitions, you don’t have to know in advance how you’re going to accomplish your goals and dreams. But you must believe that you will. To achieve success, it is vital that you first expect to succeed.
A small percentage of the world’s population earns more than 90% of all the money. This is not necessarily because they are better or smarter than you. It’s because they have developed a positive, optimistic attitude that puts them in a prime position for success.
Positive-minded people don’t seem to be any more intelligent than negative-minded people. They don’t have a particular advantage in life and their social status doesn’t seem to be a factor. But they are perceptive; they will recognize great opportunities with the potential for success, and they have the confidence to turn those opportunities into stunning triumphs.
We all have tremendous potential for achievement, but are held back by self-doubt and a lack of self-confidence. There are ways to overcome this, and it is crucial that you do. You cannot expect other people to respect you, or your goals, if you don’t.
All people have the ability to succeed by developing a positive attitude, but not all choose to think this way. If asked, most people wouldn’t identify themselves as negative-minded. They will claim they have a positive attitude, and then give dozens of reasons why they can’t achieve their goals in life. Most people live with a negative frame of mind, content to work their nine-to-five job, year after year, paycheck to paycheck, for the rest of their lives because of fear. They fear they can’t do better, or they fear failure.
Fear of failure.We all have doubts, such as, “I’m not good enough to succeed at the goals I have set, or smart enough to handle any crises that may arise along the way.” If we let them, our doubts can paralyze us from even trying, they can cheat us of the joy in achieving our goals, and they can prevent us from achieving financial or personal success.
If you believe that you will fail, then you have set yourself up for failure. If you live your life, day to day, focusing on the things you don’t want to happen in your life, such as the fear of failure, then you will have a life filled will negative things and a long list of failures. You will create a negative mindset and will get exactly what you expect.
You need to focus on what you want. Then your mind will begin programming itself for success. Be clear about what you desire the most. What goals do you want to achieve?
With a positive mindset, visualize your goals in your mind and “see” yourself successfully achieving them. Do not visualize how you’re going to get there, but only that you are going to get there. Feel the positive emotions that will come along with your success. You are telling your mind that you will achieve these things and it will respond to what you want. Here are some techniques for strengthening goals within your mind.
Write down your goals and describe them in detail. Then read them over and over again. The key to success is believing that you will achieve what you wrote.
Cut out pictures of the things you desire and the goals you want to achieve. Create a visual representation of your goals and desires―this is commonly called a “vision board.” Place this vision board where you will see it most often to remind yourself about what goals you have set to achieve and keep your mindset positive.
By focusing only on the successes in your life, you will learn to manage the fear of failure. You will learn to achieve your goals in life, and feel the satisfaction that comes from each success, which will continue to drive you. Successful people fail all the time but they look for the lesson within each failure; then they get up and try again. They also push themselves past the fear by focusing their energy on how it will feel when they accomplish their new goals.
Fear of losing money. You will never meet a rich person who has not lost money at some point in their life. Everyone has the fear of losing money, but rich, successful people will not allow fear or doubt to control their thoughts and emotions or diminish their positive mindset. Failure inspires these winners to achieve more. This is the secret to their success: how they handle fear.
A less successful person will allow fear and doubt to overpower his or her thoughts and create a negative mindset; this is a formula for failure. With most people, the fear of losing money is greater than the joy of becoming rich. The main reason that more than 90% of people struggle financially is that they play it safe and never take risks to realize their dream of becoming wealthy. These people will also never experience the joy in success and achievement.
To overcome fear, we must step out of our comfort zone and take risks. In the field of creating wealth, bankers and financial planners are often viewed as confident, positive-thinking people, but this is not always the case. They are adept at offering suggestions for investing your money, not theirs. This creates no fear or negative thoughts of failure because there is no risk to them or their personal wealth if your investments don’t do well. When it comes time for these financial experts to invest their own money, however, their true mindsets are revealed.
Financial professionals are just as vulnerable to fear, doubt, and negative thinking. If they haven’t developed effective ways to counter this negative mindset, they may not invest at all, even if it is the same investment they recommended to you. A banker may handle money daily but this does not guarantee wealth or success unless his or her interest in finance is accompanied by a positive mindset.
Fear of not being good enough.Always remember that people with a positive mindset expect to succeed, but people with a negative mindset expect to fail. They often blame their lack of confidence on external influences.
For example, some people believe that their lack of education is holding them back, and yet there are many people with college or university degrees who lack what it takes to succeed. In today’s world, a person may finish school at the top of his or her class but fail to do well when applying that knowledge outside the classroom. We have all seen people with college or university degrees working at fast food restaurants or other low-paying jobs.
Success is not always determined by the grades that students get in school; their attitude is another big factor. Teachers have reported that, when asking a question in class, many students will not offer an answer for fear of giving the wrong one, while other students will quickly raise their hands. The latter students are positive thinkers: they will not fear trying, and will feel joy and satisfaction when their answer is correct.
The students who won’t even try are lacking self-confidence and courage―in short, the mindset to achieve their goals. Negative thinking, self-doubt, and the fear of failure will severely hamper their future.
One student may have a higher grade average than another student, but if the one with lower grades also possesses a positive mindset and the courage to overcome fear, he or she is more likely to succeed in the real world. This is one reason why teachers encourage students to set aside their fears and take risks when answering questions or solving problems. It helps to eliminate the fear of failure, increases their self-confidence, and puts them in a more positive frame of mind. This increases their chances for success.
To succeed in the real world, it is as important to develop self-confidence and a positive mindset as it is to get good grades in school.
Fear case study
Many people desire to be real estate investors but, even after many courses and seminars, never invest simply out of fear. Years ago, when I was just getting started in real estate investing, I shared my venture with a childhood classmate. He was a close friend and quickly became interested in how I went about obtaining properties. After months of learning and watching what I was accomplishing in the real estate market, he asked me to help him get started with his first investment.
All people have the ability to succeed with a positive mindset, but my friend let fear affect his desire and ability to succeed. I researched some excellent investment opportunities for him, all with a positive cash flow and in areas with plans for future development. But even after completing the due diligence measures that are essential to success, and proving to him that these were good solid investments, he was still too nervous to invest.
He was only willing to invest in real estate if I would agree to go in on the investment with him. His fear of investing on his own was too great. He believed that a joint venture would ensure the success of his real estate investment. I spent time explaining the importance of doing proper research, including how to do an area study and property analysis. Despite spending months educating my friend on real estate and real estate investing, his fear was too great to invest on his own.
More than 10 years have passed and, to this day, my friend continues to let the fear of failure control him. His fear has prevented him from investing in any type of real estate property. Many people would rather play it safe out of the fear of failure than enjoy all the success they could achieve in their life with a positive mindset.
This article was excerpted from Real People with Real Strategies for Real Estate Investing, by McKinnon and Quinsay, available now.
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