Personal Finance

Create A Winning Financial Mindset: 10 Principles You Must Understand If You’re Ever Going To Succeed Financially

If we’re ever going to succeed with money, then we must have the right mindset—one that inspires, motivates, informs, and directs. Here are ten principles we must plug into our head in order to create the right mindset and ensure we win with money.

Create A Winning Financial Mindset: 10 Principles You Must Understand If You’re Ever Going To Succeed Financially

Too many of us live well below our financial potential.


Often, it’s because we fall victim to our own thoughts. We let our own limiting and distorted beliefs distract us and stunt our growth.

Hopefully that’s about to change.

When we’re able to control our mind and our thoughts, then we’re well on our way to succeed. Here are ten principles we must understand and firmly set in our mind in order to become financially free.

1) Financial Freedom Is Possible For You

First things first. Financial freedom is possible for you!

You’ve probably heard the Henry Ford quote: “Whether you think you can or you think you can’t, you’re right.”

This is so true, especially with money. No matter how hard you think it may be, you cannot let yourself believe financial freedom is impossible for you. Doing so will stifle your willpower, ruin your drive, kill your ambition, and become a self fulfilling prophecy.

No matter how short of a time frame you have or how little you’ve saved, it’s still a achievable for you.

Remember, no matter your situation, financial freedom is possible for you, even if it seems like a far stretch. Think big. Dream Big. Go Big. It’s your life, make it happen.

2) You’re In Control Of Your Own Financial Destiny

Whether you succeed or fail with money is up to you. You’re in control. You’re the owner of your financial achievement.

Your success is not determined by Uncle Sam, your family, your employer, your church, or your friends. It’s up to you.

Yes, there are many factors that are outside your control. Laws may change, the economy may tank, you may get hit with huge medical bills, but none of these are excuses to fail. Winning is too important.

Take ownership. Take control. Create the financial destiny you want.

3) You’re Not Entitled To Financial Success

Whether you like it or not, the world will compensate you what it feels you’re worth. It doesn’t matter what you think or how you feel.

You are not entitled to financial success. You must create it.

It doesn’t matter where you were born, how hard your life has been, or how many years you’ve spent working, there is no entitlement.

Just because you’re 65 doesn’t mean you should be able to retire. Just because you’re in college doesn’t mean someone else should pay your way. Just because you work hard doesn’t mean you should succeed.

Success is earned, not given. Earn it!

4) It’s Your Obligation To Increase Your Stewardship

Have you ever read the parable of the talents? Lets recap.

Long ago Jesus told of a man who was travelling to far country. Before leaving town the man called three servants and gave them stewardship over some of his money. To one he gave 5 talents, to another 2, and to the third he gave 1.

The servant that received 5 talents went and “traded” and earned 5 more. Likewise, the servant that received 2 talents gained 2 more. But the servant that was given 1 talent was afraid and buried the money.

After a long time the master returned home and was very happy with the two servants that had doubled their stewardship. To each of them the master said, “Well done, thou good and faithful servant: thou hast been faithful over a few things, I will make thee ruler over many things.”

But to the servant who was afraid and only returned back to the Lord that which was originally given him, the master was very displeased. He said, “Thou wicked and slothful servant. … Thou oughtest therefore to have put my money to the exchangers.” And then the money was stripped from the unprofitable servant, and he was cast into outer darkness.  

Now there are many lessons which can be learned from this parable, but there’s one in particular that I want to drive home.

Returning to the Lord what he originally gave us is simply not enough. We must increase and expand our stewardship. Anything less gets us labeled a wicked and slothful servant.

We have an obligation to make the most of our resources and be wise stewards over what we’ve been blessed with. The parable of the talents is not simply a “use it or lose it” lesson. Rather it teaches we must increase it or we’ll lose it. We must increase our resources, not just simply use them.

5) Money Is Not the Root Of All Evil

Many argue that money is the root of all evil, but it simply isn’t true.

Money can be the source of much bad, but it also provides the means of accomplishing much good in the world.

When people say money is the root of all evil, they are actually misquoting a popular New Testament verse:

“For the love of money is the root of all evil” 

This is an important distinction. The “love of money” is vastly different than “money” being the root of all evil.  

Money can and should be pursued for wholesome and virtuous purposes like taking care of those in need, securing freedom for you and your family, building up a stronger society, and much more. 

However, if we purse money because we love it, then our motives are impure and are much more likely to lead to oppression, hostility, and exploitation.

Remember, money is NOT the root of all evil—the love of money is. Misunderstanding this brings a sense of guilt that stifles the necessary incentive and ambition to increase your financial stewardship and maximize the value you can bring to the world.

6) Money Is Not Too Complicated

Despite what so many financial “pros” say, money doesn’t need to be complicated. In fact, for the vast majority of us, money should be pretty simple.

Sure, some financial transactions and strategies are going to be messy, but 99% of what we do should be rather straightforward.

When we think money is too complicated, we fail to take action. We fail to invest wisely, budget appropriately, or save adequately. We fail to get the most out of our money.

The secret sauce to overcoming this pitfall is to create a financial system that automates our saving, investing, charitable giving, and spending. Check out The 3 Reasons Why People Fail With Money and How To Ensure You Win to see exactly how to create an automated financial system.

Don’t let perceived complexity stifle your financial prosperity.

7) Money Is A Means To An End … But It’s Still Important

Money is far from the most important thing in life, but it sure can get in the way of enjoying what is.

If money and increasing the size of your bank account is what you’re after, you will always be left unfulfilled and empty. Having a rich bank account is not at all synonymous with having a rich life. Money is a means to an end.

It’s a tool that enables you to capture more freedom. It’s a tool that enables you to spend more time with family and friends and pursuing your passions.

If you master your money then you will be able to design the life you want, and more importantly, you will be able to live that life. That’s what living a rich life is all about!

8) Not Investing Is A Heck Of A Lot More Risky Than Investing

So many people are afraid of investing since there’s a possibility they could lose money.

Yes, investing involves risk, and yes, your investments can decrease in value.

But not investing poses a heck of a lot more risk than investing does. For example, let’s look at two scenarios.

Mary and Joseph both have $500 a month they want to contribute to retirement for 30 years. Mary is afraid of the risk of losing money, so she stocks away her money in a savings account that generates a 1% return per year (that’s what I get at Capital One 360 and it’s about 17 times better than most banks).

Joseph, on the other hand, puts his $500 a month into low-cost index funds. Since he uses an investment account rather than a savings account, his balance fluctuates up and down—sometimes significantly. Some years he loses money, but over time his index funds have generated an average return of 7% per year.

Here’s how Mary and Joseph did over 30 years:



You see, Mary thought she was avoiding risk by not investing, but she missed the mark. By trying to avoid risk, she missed out on about $350,000. Now she runs the risk of not being able to support herself in retirement.

Remember, the “good and faithful” servant from the parable of talents was an investor. He doubled his money by putting it to the “exchangers.” Doing so enabled him to be “a ruler over many things.” We would be smart to do likewise.

Investing involves risk, but not investing is a heck of a lot more risky.

9) How Can It Be Done Rather Than It Can’t Be Done

Saying “I can’t” or “it can’t be done” is a cuss word in our family.

The only limits we have are those we impose on ourselves. We are nearly always capable of much more than we allow ourselves to think or do.

“I can’t” or “it can’t be done” is especially dangerous when it comes to money. Too many people fail before they ever give themselves a real chance.

Rather than saying I can’t, ask how can it be done. Don’t say you can’t save $500 a month. Rather ask “how can I save $500 a month?” Don’t say “I can’t double my income.” Instead, ask “how can I double my income?”

Saying I can’t is an excuse. Asking how can it be done will lead to a solution.

Asking how can it be done opens your mind, enables you to find a solution, helps you move ahead, and gives you a real possibility of succeeding.

10) You Must Have A Mindset of Abundance Rather Than Scarcity

Another critical principle you must have set in your mind to succeed financially is an abundance mentality rather than one founded in scarcity. I first learned this from Stephen Covey’s book, The 7 Habits Habits of Highly Effective People. Here’s what he said about a scarcity mentality:

Most people are deeply scripted in what I call the Scarcity Mentality. They see life as having only so much, as though there were only one pie out there. And if someone were to get a big piece of the pie, it would mean less for everybody else.

The Scarcity Mentality is the zero-sum paradigm of life. People with a Scarcity Mentality have a very difficult time sharing recognition and credit, power or profit – even with those who help in the production. The also have a a very hard time being genuinely happy for the success of other people.

When we have a scarcity mindset, we focus on the short term, we lose sight of what really matters, we pit ourselves against others, and it’s extremely hard to succeed financially. However, when we have an abundance mindset, we’re much more likely to succeed. Here’s what Covey says:

The Abundance Mentality, on the other hand, flows out of a deep inner sense of personal worth and security. It is the paradigm that there is plenty out there and enough to spare for everybody. It results in sharing of prestige, of recognition, of profits, of decision making. It opens possibilities, options, alternatives, and creativity.

When we have an abundance mindset, we think win win and are not focused on the short term. It helps give us the creativity and options to succeed and win with money.

Conclusion: Create A Winning Financial Mindset

We will never succeed financially if we don’t have a winning mindset—one that motivates, inspires, informs, and directs.

In order to create a winning financial mindset we must understand that financial success is possible for us. We must understand that we’re in control of our own financial destiny and we are not entitled to success—we must earn it. We must also understand that money is not the root of all evil and it is our obligation to expand our financial stewardship. Money is not too complicated, it’s a means to an end, and investing is well worth the risk. We must also have an abundance mindset where we look for win win opportunities and ask ourselves how can it be done rather than telling ourselves it can’t be done.

Action Steps

Apply the principles of a winning financial mindset!

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Please comment! Please let me know what you think—what you liked, what you didn’t, any questions you have, or future topics you would like to see discussed. I want this to be about YOUR financial freedom! I want to provide answers to what YOU need help with!

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