Money is a powerful motivator, but it can also be a source of stress and frustration. Many people struggle to make enough money to meet their needs and want, while others seem to effortlessly attract wealth and abundance. What is the difference between these two groups of people? Is it luck, talent, or something else?
The answer may lie in the way they use their brains. The brain is a complex organ that controls our thoughts, emotions, and behaviors. It can also influence our money habits and decisions. By understanding how the brain works and applying some psychological techniques, we can trick our brains to earn more money and achieve our financial goals.
Here are some ways to train your brain to make more money:
1. Practice gratitude
Gratitude is a powerful emotion that can boost your happiness, health, and well-being. It can also help you make more money by reducing your impulse to spend on things you don’t need or value. When you appreciate what you have, such as food, shelter, water, and health, you realize that you have most of what you truly need and want. As a result, you are less likely to splurge on unnecessary items that may drain your wealth.
Exercise: Every morning, write down 2–3 things that you are grateful for. Keep the list in your pocket, wallet, or purse. Whenever you feel stressed or tempted to buy something, read the list and remind yourself of what matters most.
2. Create multiple income streams
Relying on one source of income can be risky and limiting. If you lose your job, get sick, or face an unexpected expense, you may find yourself in financial trouble. Having multiple income streams can reduce your risk and increase your passive income. Passive income is money that you earn without active involvement, such as from investments, royalties, or online businesses. To create multiple income streams, you need to identify your skills, passions, and opportunities and develop a plan to monetize them.
Exercise: Make a list of all the ways you can earn money besides your main job. Think of your hobbies, talents, interests, and assets that you can leverage. For example, you can write a book or a blog, create an online course or a podcast, sell your crafts or photos online, rent out a room or a car, etc. Choose one or two ideas that appeal to you and research how to get started.
3. Use debt wisely
Debt can be a useful tool or a dangerous trap depending on how you use it. Good debt is debt that helps you invest in assets that generate income or appreciate in value over time, such as education, business, or real estate. Bad debt is debt that costs you money and has no potential for growth or income, such as credit cards, car loans, or payday loans. The rich strategically use debt to leverage their investments and take advantage of tax benefits. However, you should avoid bad debt that drains your wealth and limits your financial freedom.
Exercise: Review your current debt situation and categorize it into good debt and bad debt. Make a plan to pay off your bad debt as soon as possible by prioritizing the highest interest rate first. Avoid taking on new bad debt unless absolutely necessary. Use good debt sparingly and only for investments that have a positive return.
4. Minimize taxes legally
Taxes can have a significant impact on your wealth accumulation so it is important to plan ahead and use various tax minimization strategies. The rich employ tax-advantaged accounts like IRAs, 401(k)s and HSAs, capital gains tax strategies, and charitable giving to benefit from deductions. You should consult with a tax professional to understand the best tax minimization strategies for your situation.
Exercise: Review your last tax return and look for any deductions or credits that you may have missed or could qualify for next time. Research the different types of tax-advantaged accounts and how they work. Consider donating some of your money or goods to a charity of your choice and keep the receipts for tax purposes.
5. Invest in yourself
One of the most valuable assets you have is yourself so you should never stop learning and improving your skills and knowledge. The rich invest in themselves by reading books, taking courses; attending seminars; hiring coaches, and networking with other successful people. Investing in yourself can help you increase your income potential, expand your opportunities, and achieve your goals.
Exercise: Make a list of skills or knowledge areas that you want to improve or learn. Choose one or two that are relevant to your current or desired career path
