10 Ways Financially Free People Think


One of the things I enjoy most about being a money coach is having conversations with financially free people. After years of meeting with hundreds of those who are wealthy and financially free, I began to notice some commonalities. Almost every one of them had these ten ways of thinking.

1.    They always think of ways to reduce or minimize living expenses. 

I got a call once from a man who wanted advice on eliminating his cable movie channels. The odd thing about it was, he was the head of the cable company!

2. They maximize their fun.

They know what they like and value and don’t mind spending money on that. 

However they are careful to not waste money on things which are not important to them.

3. They think in terms of net worth. 

They do not think in terms of how much they will earn but how it increases their net worth. 

Net worth takes into account the value of assets minus any debts. 

4. They believe it’s better to have money than it is not to have money

Sounds simple, right? However if people really felt that money was better to have, then they wouldn’t spend so much of it. Instead, they would save and invest more of it. 

5. They are always scheming about ways to earn money. 

They typically have multiple streams of income. 

6. They believe they should earn interest instead of paying it.

Interest works for the wealthy and against the poor.

7. They avoid paying excessive taxes.

While many see a tax refund as a bonus, wealthy people see it as the government borrowing their money without paying interest. 

They don’t want to pay a penny over what they are legally required to pay. 

8. Financially free people are focused on being wealthy and not looking wealthy. 

Everyone invests in assets. The typical person invests in assets which depreciate like cars, clothes, shoes, etc. 

Financially free people invest in assets that appreciate like stocks, mutual funds, real estate, etc. 

9. They believe it is not about how much you earn, but about how much you save.

I’ve seen plenty of folks who earn over $200,000 a year who are not financially free. 

It seems the more they have, the more they want. 

They always want a bigger house or a newer car. They borrow from the future expecting that they will catch up one day. They have everything that riches can provide, and yet they do not have financial freedom. In contrast, I have seen many financially free people who never earn what we may consider a substantial income and yet manage to save and live debt-free.

10. They are always learning when it comes to finances. 

We receive more calls and questions on finances from those who would be considered wealthy than I do from people who are struggling financially. 

Those who are financially-free tend to see the value in getting good advice from others. 

Financial Freedom is a choice that each of us has. We can start with thinking more like those who are financially free. Their way of thinking perpetuates the existence of money in their lives and allows them to build real wealth. 

So, are you thinking like the financially free?

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