Breaking the Broke Mentality
Many of you starting out in business may be broke. This could be a good thing. Having limited resources will force you to be resourceful if you have a burning desire for success.
Starting any business broke should spark a creative mindset to enable you to do more with less.
When I was a government employee, I wanted to pour as much money as I could into my growing real estate portfolio! A portion of my disposable income was invested in my real estate portfolio regularly.
In order to make this pot grow, I reduced my personal living expenses to the point I was living a meager lifestyle.
I would not hang out, I didn’t have cable, I didn’t own a car while living in New Jersey, I didn’t buy new clothes, and I lived in an attic converted into an apartment to save money.
If you were looking at appearance only, then I would have appeared to be beyond broke. I was broke when it came to having material objects, but rich in assets.
After succumbing to this lifestyle for four years, I was able to earn enough passive income to the point where I no longer needed a paycheck from my day job to survive.
In fact, the returns from my real estate portfolio greatly exceeded my lifestyle to the point I was able to live anywhere and anyway I wanted!
Shortly after submitting my two weeks notice, I moved out of that makeshift apartment and headed south to Atlanta, GA, where I moved into a real apartment with great amenities.
I took it a step further and even bought myself a Mercedes Benz as a reward for all the sacrifices and the hard work I did in those four years.
Yes, I treated myself to better living and driving conditions, but I realized I still had a broke mindset lingering around.
It can be a slow transition to go from always thinking of how you can save money, to how you can spend a little extra money on things that don’t add passive income to your portfolio.
I recognized I had to develop a system. Each time I reached a business goal, I decided to celebrate my success by buying something new, taking a nice trip, or outsourcing mundane activities like hiring a cleaning lady, etc.
To break it down even further, when I purchased a nine-unit apartment building that was cash-flowing $800/mo, I used a portion of it to get a nicer place to live in, and started taking weekend trips every month, and set a budget to buy myself new clothing periodically.
Slowly break the broke mentality once you start earning additional income.
Each time you reach a business goal, celebrate your success by using some of the proceeds to hire a virtual assistant, to buy a better piece of equipment or anything that will increase the efficiency or effectiveness of your organization.
One last thing, don’t forget to reward yourself too!