7 mentally strong financial traits everyone should have

Money is a mental game. Mentally strong people use their mind to set themselves up for success. How does one do this? Through repetition, learning, and a strong desire to succeed.

#1 They Understand The Power Of Each Decision

Each decision creates a result. The collection of those results creates the financial future for you and your family. Those who want to create wealth, understand that no matter how small a sum of money is, it will grow much larger over time.

If you spend $20 a week on something consistently, in 20 years you have spent $20,780.

If you invest that $20 a week with the market average of 8% interest, you would have $51,310.30 in 20 years.

30 years invested: 130,037.35
40 years invested: 305,139.62
Realize that the decision you make today, can have a huge impact on tomorrow.

#2 They Remove Emotion From the Equation

This may be the most important trait that any mentally strong person can have. Emotions will destroy your financial decision making in every aspect. How many times have you gone into a store and made a purchase. Immediately after, you regret the decision you just made? 99% of the time, that is a result of a choice based on emotion. It is the entire premise of "buyers remorse".

Mentally strong individuals can control their emotion when making decisions with their money. This is especially important when they make large purchases (such as a home or investment). Just because the house is perfect in every aspect does not mean you should pay above market value to have it. You can almost always find a similar house below market value for the same price. I know, I know, it has the exact granite countertops you saw on Chip and Joanna put in, but it is still above what you should be paying.

Many people make the same mistake when purchasing investments. In the late 90's during the tech boom, many people thought Yahoo would had infinite potential. It would have to be worth the Gross Domestic Product of the United States to be worth buying. Yet, emotional investors kept buying Yahoo, feeding off the media frenzy. Well, the buy train did not last forever. Their emotions got the best of them and ended up costing folks thousands if not millions of dollars.

#3 They Are Consistently Persistent

The money game is a long one. One that takes stamina to endure. Financially strong people are extremely persistent. Each day they stick to their plan. They work at it, learn, and tweak their plan. That plan, in turn, becomes their success.

Say your goal is to simply be a millionaire. If your plan lays out a foundation of what you must contribute to your investment account to achieve that goal. Then by-golly you better contribute your planned amount to that account every month. You know that this persistence will get you where you want to go, and nothing should get in your way.

#4 "Can't" Is Not An Option

Setting out to achieve your dreams is an absolute characteristic of any mentally strong individual. Fear is an emotion that can get in the way of this. Many people set out on their financial journey, stumble into a few roadblocks, and are paralyzed into inaction because they fear they "can't". When you focus on fear of failure, you will never achieve your goals.

Those with a strong mentality know this, and use their failures as learning experiences. I have achieved more success learning from my failures than I can count. You need to be willing to keep trying until you get it right.

#5 They Roll With the Punches

Failure is inevitable. Everyone makes mistakes. It's how you handle those mistakes will dictate your life.

If you overspend on your budget, don't beat yourself up, adjust. If you buy an investment that doesn't pan out, learn from it and move forward. Letting mistakes keep you down will never enable you to reach your goal.

#6. They Aren't Afraid To Put In a Little Sweat

Having a strong financial mentality also requires the willingness to work. Even though work ethic requires action, it is your mentality that drives that action. If you put in calculated work, the results will follow. Hard work in your early years can reap rewards that will last your entire life.

#7. They Never Stop Learning

The greatest money mind of all time, Warren Buffet, is known to read 80% of his work day. Those who have a strong mentality will never stop learning. Knowledge is such a powerful tool and we have so much information at our fingertips. If you are not pushing yourself to learn on a daily basis you will fall behind. Mentally strong people know this. In the book Rich Habits, the author studies that everyday lives of the rich. He looks for the things that they do on a daily basis that separates them from the rest of the pack. The author notices that those who have a multi-million dollar net worth all have the same habit. They would read non-fiction books with direct correlation to their goals every single day.

Learning also helps put the person who cares the most about your life in charge, YOU! You can kiss that financial advisor goodbye, which is good for you and your wallet. Financial literacy should be at the forefront for anyone looking to build wealth. Knowledge is the fuel for a successful financial mentality.

The post 7 mentally strong financial traits appeared first on Dollar After Dollar.

RELATED: Personal finance books for everyone

Personal finance books for everyone
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Personal finance books for everyone
The Millionaire Next Door

"The Millionaire Next Door is my go to finance book. It’s a great book to get your thinking differently about your money, and find out how others have been successful building wealth." -Debt Discipline

"The Millionaire Next Door is an explanation of how average people with average incomes have been able to attain millionaire status. If you don't think you're ever going to become wealthy, this book is here to prove you wrong!" -Financial Fanny Pack

"This best-selling book by Thomas J. Stanley dispels misconceptions about the wealthy and reveals the common traits they share. It was an eye-opening book that helped me get a better vision on my journey toward financial freedom." -Marriage, Kids and Money 

I Will Teach You to be Rich
"Ramit is amazing at explaining boring and complicated personal finance topics in a conversational, fun, and easy to understand way. This book totally covers everything you need to do for healthy finances and dissects it into simple, actionable steps you can start on immediately. Recommended for anyone who wants to get their money matters in order!" -InvestmentZen
Your Money or Your Life
"This book offers unique perspectives on personal finance, including challenging the reader to consider how many hours were spent working towards items they've purchased, rather than just the price. If you're looking to transform your finances, this is a great resource." -Mystery Money Man
Scarcity: Why Having Too Little Means So Much
"This book explains how powerful scarcity can be, whether it’s a lack of time or money. It’s not exactly a personal finance book--it’s more about psychology and poverty, but it’s one of the most interesting “finance” books I’ve read." -The Wild Wong
The Simple Path to Wealth

"The Simple Path to Wealth by JL Collins. Most people over complicate personal finance. This is one of the easiest books I've read about getting your finances in order and investing in your future." -The Jenny Pincher 

Rich Dad Poor Dad
"Rich Dad Poor Dad focuses on stories from the author's life to reveal the differences in how the "rich" and the "poor" think about money. Kiyosaki's explanations are easy to follow and can be a good starting point for some basic financial ideas that anyone to use." -Financial Fanny Pack
The Top 10 Distinctions Between Millionaires and the Middle Class 
"The Top 10 Distinctions Between Millionaires and the Middle Class by Keith Cameron Smith is a quick, easy read that challenged my thoughts on making money and inspired me to stop chasing paychecks and pursue financial freedom! I wrote a post about it here." -Saving with Spunk
The Total Money Makeover

"This book has inspired millions to turn around their finances and get out of debt. The information is straightforward and understandable and would be a great gift for anyone from college student to the soon-to-be-retired." -Hope + Cents

"Dave Ramsey provides 7 easy to follow "baby steps" that lead people to financial prosperity. This book helped me to become debt free and create a plan to pay off my mortgage by age 35." -Marriage, Kids and Money 

The Richest Man in Babylon
"The Richest Man in Babylon's collection of short stories cuts out a lot of today's financial jargon in order to get back to the basics. This book offers simple and actionable strategies that can, and should, be used by financial experts, complete beginners, and everyone in between." -Financial Fanny Pack
Money Talks: When To Say Yes And How To Say No
"This book would make for a great gift, because it’s not your run-of-the-mill, dry finance book. It focuses on real-life experiences with practical solutions to get out of sticky money situations. I devoured this book and it’s my go-to recommendation whenever a friend or family member asks me for one." -Jessica Moorhouse
The Wealthy Barber Returns
"In The Wealthy Barber Returns, David Chilton mixes great financial advice and laugh out loud humor.  A few chapters are geared towards Canadian readers, but anyone interested in personal finance would find this a great read!" -Mystery Money Man
99 Minute Millionaire
"Scott Alan Turner pens this no-nonsense book focused on reducing your stress when it comes to investing and retirement. It opened my eyes to hidden broker fees and the simplicity of an index fund-based investment portfolio." -Marriage, Kids and Money 
Awaken the Giant Within
"If you're going to make any money or be successful in this world, you need to understand yourself and get clear on what you want.  There is no better book out there for accomplishing your goals." -Jiu-Jitsu Finance

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