The Investor's Mindset

Did you know that anytime economic crisis hits, there are some companies who see no economic impact simply because of their customer? One of my favorite examples is the fashion icon Prada. Prada's customers is wealthy and values the finer things in life. They typically have a sound financial setup to afford luxuries. This may have been inherited, gifted or built. When markets waiver due to national or global economic hardship, (aside from catastrophe) Prada doesn't typically see much fluctuation in revenue. Why?

Prada's customer has build a strong loyalty and is fixated on their products. Their customer has made their product a priority in their expenses and will actually make lifestyle adjustments to continue to afford those products. This can include things like deciding to walk more places versus taking a taxi or skipping the morning coffees to save for what they value more. 

If you know me personally, you know that I am not a collector of material things. I am not a shopper. I am actually a pretty intense minimalist focused on few quality things. While that may come as a surprise to the readers that know my field of professional work, this lifestyle has been a catalyst to my entrepreneurial life on the backend. Growing up with parents who were entrepreneurs and inventive, this mindset was instilled in me from an early age: The Investor's Mindset. The Investor's Mindset is how you can think about money like an investor. It can be a scary and a hard concept to grasp, but a compounding one. 

Most People's Approach to Money vs. The Investor's Approach to Money 

Invest first and then put money into your savings. 

Being focused and knowing what you want is going to help you tremendously with truly building the life you want. Social Media is a major distraction. Don't let it suck you in. Read more on ways to Feed Your Focus.

Why Build a Savings?

Paying interest is expensive.

It gives you freedom.

It allows you room for emergencies.

It helps your stress levels.

It instills discipline. 

How to Rework your budget to build a savings:

Decide on your priorities.

Find ways to cut expenses and save money.

Make your saving automatic.

When to Invest?

Once you have your savings at a comfortable amount, start investing more and saving a flat rate. 

Why does your personal financial situation matter so much for running a businesses? It helps you have lending power and lock in the best interest rates. It will also influence your business practices whether you are running small or large companies.