When you strive to develop a low risk wealth mindset, you’re setting yourself up to build wealth rather than having it disappear with no clue where it went. That means impulse shopping is a thing of the past and you should analyze every purchase you make – even the small things.
Both personal and business spending should be limited to what you need. Jumping at every shiny new object like a new pair of shoes you don’t need or software and plugins that aren’t beneficial to your business isn’t the way to nurture a wealth mindset.
Stick to time-honored methods to avoid financial mistakes that could take years to recover from. When you’re leveraged to the highest point, you won’t be able to take calculated risks and invest when the best opportunities present themselves.
Don’t Spend More Than You Should
One rule of thumb for personal or business spending is to avoid credit unless you can afford to pay cash. It’s okay to build a good credit rating by wisely cultivating the advantages of having it, but don’t simply pay by credit if you don’t have the cash to back it up.
There are so many bright and shiny objects to tempt you to open your wallet that it can be difficult to know which are the best investments. In your personal life, that might equate to a big screen TV or shiny new car and bumping your credit to the max.
In business, you might be attracted to the promises and hype that other marketers throw out to entice you to buy. Some of these are excellent deals and can provide guidance and advice for your future.
Other offerings might sound good, but you find out it’s a bunch of fluff when you download it. Do your research before you plunk down the money or go into debt for software, plugins or to join a mastermind group.
One way to ensure you don’t jump at the latest deal or succumb to an impulse is to delay making the purchase. Don’t let sales people – online or offline – pressure you into signing on the dotted line before thinking about it first.
You may be itching to say “yes” to that advertisement promising overnight success for your online business if you sign up for a product or online class. And that new car may sound like a deal you can hardly refuse until you read the fine print and find out what you’re really paying.
Never think you can’t get the same deal if you walk away and think about it for 30 minutes or a day or two. It’s beneficial to step out of the bubble and see the big picture of what the deal truly entails.
Another way to ensure that your budget will remain intact is to deal only with cash. This is a great idea for those who just can’t seem to pass up deals that may or may not be a good idea.
One good method for watching your spending is to open an account designated only for spur of the moment purchases – and cancel the overdraft protection. You’ll have to be vigilant about the balance and careful not to go over.
There’s a thing called FOMO (Fear of Missing Out) that affects many marketing entrepreneurs. If it seems that everyone is jumping on the bandwagon of a good deal, you don’t want to be left out, even if you can’t afford it.
You may be tempted to go on a fun, but expensive trip with your friends because you don’t want to miss out on the experience even though it will take months for you to completely pay off the debt.
Think about the benefits you’ll derive from your spending before you plunk down cash or a credit card and you’ll be on your way to developing a low risk wealth mindset. Sometimes the reward doesn’t outweigh the risk involved.
Analyze Purchases to Avoid Financial Mistakes
That cheap bargain may seem like a good deal, but when you actually download it and take a look at it, you see all sorts of flaws that make you sorry you paid any amount for it.
You would have been better off purchasing a better quality product and one that would give you a better return on your investment. It’s the same in both offline and online marketing.
Purchasing products or services which seem like a deal you can’t refuse sometimes leads to disappointment and failure. A good rule of thumb is to only purchase products from those people you trust.
Most online entrepreneurs have a track record that you can easily check. Educate yourself about the seller before you commit to anything. Most of us feel good about purchases we make at first.
It’s a rush of adrenalin to spend money on something that you think is going to make you look or feel good or benefit your own business. It’s so disappointing to find that what you thought was a great bargain is flawed in many ways.
Hopefully, you didn’t break the bank and you can recover. Now you’ve learned a big lesson in purchasing. Research before you buy and are sure you’re purchasing from a reputable source.
Ask yourself if you really need the bright, new, shiny object you’re attracted to. You might find a better deal if you shop around a bit more. Or, you could find something less expensive that will do the job just as well.
Don’t skimp on quality. You may have to pay a little more, but in the long run it will prove to be a bargain. Some smaller purchases may seem like a good deal – and you’re really not spending that much – but little things add up and you may find yourself spending more than you intended.
Use Everything You Buy or Don’t Buy at All
Going through the grocery aisles when you’re hungry isn’t a good idea. You end up filling your cart with extras that you may not have intended to buy, but the promise of taste and fulfillment makes it hard to resist all of the tempting delights.
A week later, much of what you’ve bought is ruined and you end up throwing it away – or what you bought on impulse wasn’t as good or fulfilling as you thought it would be and it goes to waste.
It’s the same with every bright and shiny object you’re attracted to. You pay hard-earned money because it promises success beyond what you expected and you purchase it only to find out it’s not all it was cracked up to be.
If you were an employer, you’d quickly get rid of an employee who made non-useful purchases time after time. Make it a point to implement all of your purchases within a two-week time period and you’ll be surprised about how much more you’ll think before you buy.
Be careful not to purchase products and then demand a refund because you can’t use it within a certain time period. That isn’t fair to the seller who has to deal with the refund in many ways that take time and effort.
The time-period you set to use a purchased item should be a tool to help you avoid procrastination and to force you to carefully think about the implications before you push the “Buy Now” button.
This one act of thinking clearly before you purchase will help you save money. If the item is just going to sit in a drawer or remain in your downloads until you forget about it, then it isn’t worth buying.
Experts say that having too many possessions can be a burden in your life. A big house with a pool and lots of amenities can keep you from taking advantage of traveling to the places you’ve always wanted to see.
Too many bells and whistles in your business can keep you so busy you’re unable to focus on the real desire of making your business grow. Choose your purchases wisely and avoid the shiny new object syndrome.
Create Products That Will Convert
Conversion is one word you’ll hear often in the pursuit of wealth when you’re an entrepreneur. You have to create products that will covert to sales or you won’t be successful in your online ventures.
The best way to know if a new idea that could turn into an amazing product that will convert is to diligently research it. What is the competition doing along these lines – and has it been done before?
If it has been done before – was it done successfully, and can you do it better or make it different than other marketers? Check out forums and comments to see if someone has mentioned wanting or needing your product or service idea.
Remember to carefully think out your product pages. They will be the deciding factor on whether or not your traffic will convert. You’ve thought of the idea, taken time to work out a strategy and goals and then spent hard work and money on the idea, so give the customer a chance to be wowed.
The first look of the page has to provide the customer with a good experience. Then, the information needs to assure and motivate him or her to buy. One good tip from the experts is to de-clutter your page.
Cut out the frivolity that doesn’t tell your customer something about why he needs the product. Pictures and text that don’t really serve a purpose should be cut from the page – and keep the information simple and succinct.
Your customer likely doesn’t want to waste his time on reading or looking at stuff that doesn’t have a thing to do with the product, so get to the point quickly on your page. Make sure you include a call to action. Without that, the customer won’t know where to go next.
With every page you create, you’re helping build your customers’ confidence in you and your product. Let them know you have their best interests in mind and be convincing about how the product is going to help them.
One element that’s essential when creating products that convert is to always give the customer an option if they choose to pass up the deal (such as a one time offer) at the present time.
You might offer a downsell that extracts part of the original offer – or show them something entirely different. You’ll be creating trust with the customer that you always have them in mind and want to help as much as you can.
Diversify Your Earnings to Keep Risk at Bay
To keep investments safe from the fluctuating economy, many experts recommend that you diversify. That means you keep money in various types of investments, so if one type fails, you still have growing savings in the others.
That bit of wisdom also applies to your online business. When you operate with various business models – info products, affiliate marketing, Kindle fiction, coaching, AdSense and others, you’re diversifying your business so that if one part wanes, the others can make up for the slack.
It’s also called not putting all your eggs in one basket. You have much more chance of something happening to a single basket and crushing all of your eggs than if you divide the eggs into various baskets to weather any storm that might come your way.
A good example in the online marketing business is Squidoo.com. So many people built their one business model on it and counted on it to pay their bills. One day it wasn’t there anymore.
The site was shut down without much warning and everything – all of the hard work and time invested was gone. Diversification has worked for many corporations who wanted to enter a new market by creating a product that the corporation had not yet entered.
When a company is diversified properly, it’s not so devastating if the new idea doesn’t work – they still have other products to fall back on. There are several strategies that good marketers use to diversify their businesses.
One is to change the product ever so slightly so that it appeals to another type of customer. For example, if you offer an online course with an expensive price tag, try cutting the course down and lowering the price.
This strategy can attract those people who are looking for something less expensive and simpler. You can also tailor your products to different demographics, such as weight loss products that cater to men versus women – or even age groups such as seniors or the over 40 crowd.
You can also offer a book along with a course for more information. This strategy also sets you up as an expert in your field and takes you to the next step on the ladder to monetary success. Diversification is one of the best strategies of adopting a low risk wealth mindset.