4 Valuable Tips for a Healthy Money Mindset

Have you been thinking about what you need to do to ensure a comfortable retirement? Do you want to learn how to invest now, so you'll have enough wealth built up to thrive in your golden years? There's a big difference between dreaming of becoming rich and being committed to having financial independence. Understanding this difference is critical to accumulating wealth and preparing yourself for your future. To understand this, you need to first establish a healthy money mindset.

I've asked my good friend John Assaraf to guest post about the power of your mind in becoming wealthy.

Before diving in, remember that a healthy money mindset isn’t just about abundance thinking—it’s also about clarity, discipline, and long-term vision. In Rule #1 investing, your mindset determines your strategy. It’s what enables you to resist market hype, stay patient, and make decisions based on value—not emotion. Let’s explore how to get your mind ready for wealth creation.

What Is a Healthy Money Mindset (And Why It Matters for Wealth Building) by John Assaraf

John Assaraf is a serial entrepreneur, brain researcher, and CEO of NeuroGym. In the last 25 years, John has grown 5 multi-million dollar companies in real estate, Internet software, brain research and life and business coaching and consulting. He’s the author of 2 New York Times best-selling books, Having It All and The Answer.

It’s time to invest in yourself.

If you believe in yourself, see yourself as a financially independent person, and practice being whom you want to become . . . it will eventually happen!

Take a moment to visualize your future self. I call this exercise the “Rocking Chair Technique.”

• Close your eyes and project yourself forward in time to when you’re 80 years old.

• See yourself having a conversation with your older, wiser self.

• Ask your future self to give you clear and precise answers to the following questions: What should I stop doing? What should I start doing? Is there anything you’d change about your life?

• Listen for the answers; allow the knowledge to seep into your psyche . . .

• When you’re ready, open your eyes and write down what your future self said to you.

You want to experience your ideal lifestyle, right? So how will you heed the advice you received from your future self? How will you make enough money so you can realize your goals and dreams? And once you’re financially independent, how will you get your mind primed to manage your money? How will you invest your money wisely? These are all important questions to ask.

Follow the tips outlined below to get you started on your wealth paradigm shift, your path to financial well-being, and overall success.

4 Powerful Ways to Build a Financial Freedom Mindset

1. Understand what money is . . . And your personal relationship with it.

Money is an idea that was created to establish a value system. It’s a means for fair exchange between those involved in transactions such as trading, investing or saving. So money is nothing more than an idea. And ideas are nothing more than electromagnetic energy.

However, factors other than just thinking about money contribute to its flow and circulation into and out of your hands and bank account. Once you understand the neuroscience behind attracting and earning as much as you want, things will become a lot clearer and easier.

In Rule #1 investing, understanding money also means understanding how your money should work for you. Instead of chasing quick returns, the Rule #1 approach focuses on buying wonderful businesses at attractive prices. This shifts your mindset from trading to owning—thinking like a business owner, not a gambler. Your relationship with money should be one of stewardship and responsibility, not just accumulation.

2. Value yourself first and foremost.

There’s a saying: “We don’t see the world as it is. We only see the world as we are.” The money results you’re experiencing are a reflection of your internal framework. When you change your mental blueprint and financial self-image (a.k.a. your money story), you transform external results.

If you keep telling yourself that you aren’t smart enough or good enough, or that you don’t know enough, it’s not going to be easy to turn on the steady stream of cash flow. And with a fixed, low-earning mindset and constant negative self-talk, you won’t be likely to retire early.

So instead of all that unproductive thinking, implement a “millionaire mindset” and put a high value on yourself. When you value yourself first and foremost, you increase your deserving level through a self-worth vibration and resonance.

When you begin to truly value your time, your energy, and your potential, you’ll also stop settling for poor financial returns. Rule #1 teaches that every dollar you invest should reflect how much you value yourself—by putting it into businesses that align with your values and that you understand well. As Warren Buffett says,

“Never invest in a business you cannot understand.”

3. Align your emotions with your goals.

If you don’t have an emotional reason why you want to accomplish your financial goals and dreams, you won’t have the necessary fuel to keep you motivated when self-doubt and fear show-up to crush them.

You must use your emotion and your higher purpose as fuel. Do you want to have enough money to help save the sea turtles? Do you want to be able to spend more time with your loved ones? Do you want to heal yourself and help others to heal themselves? How will your financial success create a life full of purpose and meaning for you and your values?

You can’t just set goals. You have to get every cell of your entire being involved with your goal process. This is the secret ingredient to following your goals through to completion.

Remember the conversation you had with your older, wiser self? Incorporate that wisdom into your goal setting and planning. Make a list of your reasons for setting goals. Why do you want to achieve your dreams?

This is where the Rule #1 concept of mission-driven investing comes into play. When your investments are tied to a greater purpose—whether it’s early retirement, charitable giving, or generational wealth—you’re more likely to stick with your plan during volatile markets. Emotionally fueled goals strengthen your discipline.

Figure out what motivates you.

When you set big goals, you have to switch your thinking, beliefs, and behaviors. And this rewiring takes a lot of practice and dedication. As humans, our brains are wired to a fear circuit . . . and as a result, we love our comfort zone. We fear the unknown, so we stay complacent and tolerant of our current (not necessarily ideal) situations. Let’s face it; we’re creatures of habit.

So my next question to you is all about motivation. Do you have a big enough motive for taking action on your goal/dream?

Now ask yourself: Does it matter to me if my life has real purpose or meaning? The reason I want you to ask yourself this question is that the answer may help you override your current biological and psychological wiring that keeps you stuck in the comfort zone.

4. Hone your skills and make a plan.

Once you’re clear about what you want and why you want it, the next step is to gain further insight on how to accomplish your goals and dreams. You have to figure out what really motivates you to be committed to taking action toward your goals.

Let’s take the money as energy concept one step further and add this statement: You will get paid in direct proportion to the service and value you bring to the marketplace for which you charge.

If you are currently not earning more than enough, it’s because you are not yet offering enough of your services, knowledge, and expertise to either enough people or the right people. Remember, money is part of a value system, and the more you get people to value what you offer, the more you will earn . . .

Ask yourself these questions:

• What must I learn?

• What skills must I upgrade?

• What beliefs and habits must I develop?

• What beliefs and habits must I let go?

• Who can help me achieve this?

Once you have the answers and are clear about what you must do, create a plan and start taking immediate action. You’ve probably heard that a goal or a vision without a plan is only a dream. But with a plan, you can make your dream your reality. No one ever stumbles into success without a strategic plan. Get a clear understanding of where you want to go, whom you want to be, and what you want to accomplish.

This is exactly why Rule #1 investors spend significant time learning how to evaluate companies. Skills like reading a company’s financial statements, calculating its intrinsic value, and identifying its “Moat” and “Meaning” are essential. The more you sharpen these skills, the more confident you’ll be in your investing decisions—and the more successful you’ll become. Learning how to invest well is one of the highest ROI skills you can develop.

Why Mindset Is the First Step to Successful Investing

Money becomes a tool for freedom when you align your mindset with time-tested principles. Whether you’re just starting your wealth journey or looking to deepen your financial discipline, remember this: a wealthy life begins in the mind—and is built through deliberate action. Rule #1 investing isn’t about taking big risks—it’s about making smart, patient, values-driven decisions that compound over time. The mindset comes first. The money follows.

Ready to invest in yourself to create an amazing life? My Pillars of Personal Finance will get your finances in order to get on track to start investing.

**Editor’s Note (Updated April 2025): This article was originally published in 2017 and has been significantly updated in 2025 to reflect current examples and Rule #1 investing insights.