Rich Dad Education Blog

A Rich Woman is a woman who is financially independent—a woman who is dedicated to taking charge of her financial life, and who is not depending on someone else for her financial well-being. She is a woman who insists on becoming financially free.

So the first question I usually get is, “Where do I start?” And if you’ve already started then the question is, “How do I keep growing what I have?”

For me, the answer isn’t in a precise, step-by-step formula. The most important next step is found in you–specifically in how you think–and your mindset.

Why is the mindset so essential? Because how and what you think, what you say to yourself, how you react to circumstances, and what you aspire to will directly affect what you receive in life.

For example, if you think life is tough then life will be tough. If you say, “I can’t do that,” then you can’t do that. If you’re so afraid of making a mistake that you avoid the new and unknown then you don’t learn or grow. Yet if your words are, “I can!” “I will!”–in other words, if you say “Yes” more often than “No”–and you look at the new and unknown as an adventure and an opportunity to learn, then your chances for success increase dramatically.
James Allen, the author of my all-time favorite book As A Man Thinketh, says, “All that a (wo)man achieves and all that (s)he fails to achieve is a direct result of (her) own thoughts.”

He also states, “Men are anxious to improve their circumstances, but are unwilling to improve themselves.”
Adopting a mindset that produces what you truly want in life versus one that leaves you struggling is definitely a willingness to improve yourself.

So it’s easy to simply say, “Change your thoughts, change your mindset,” but is it actually that easy to do it? This is the question I began asking. And it’s amazing when you start seeking out answers how quickly they appear.
One day a friend, out of the blue, gave me a book she had just read (so appropriate to this message) titled Mindset, written by Carol Dweck. Ms. Dweck’s research struck a chord. Here is a quick summary:

There are two types of mindsets. The first is the Fixed mindset. People with a fixed mindset believe that a person is born with a certain amount of intelligence and that amount does not change. Her personality, talents, strengths and weaknesses remain constant throughout her life. She may learn new things but her intelligence does not grow.
The second mindset is called the Growth mindset. These people believe that your intelligence, abilities, aptitude and character can constantly change and improve through learning and experience.

Here’s the key: Because a fixed mindset person has a set amount of intelligence they spend their whole life proving how smart they are. These are the people who flaunt their degrees and titles. They know all the answers. They constantly seek out validation. And because of this they cannot make a mistake. They cannot fail. For if they did, that failure would jeopardize their very existence. They think, “If I make a mistake or fail then I’m not as smart or talented as I portray myself to be.” They do not seek out the unknown. They do not take chances because, God forbid, they might fail. These are definitely not the entrepreneurs of the world.

The growth mindset people, on the other hand, welcome challenges. They want to tackle the unknown. They opt for the more difficult problems. They have a passion for learning and for growing. They want to constantly stretch themselves because that’s how they get better.

When it comes to success, Carol Dweck points out, “In the world of fixed traits, success is about proving you’re smart and talented. Validating yourself. In the other (growth mindset) it’s about stretching yourself to learn something new. Developing yourself.”

I love learning. I know very well from first-hand experience that the way I personally grow is to face things I don’t know I can do, things that are often frightening, and to do them. That’s the ultimate! Yet, in understanding the two mindsets, I realized that I actually have both mindsets in play–depending upon the subject. For instance, I’ve always thought of myself as all thumbs when it comes to painting and drawing. I now realize that’s not true. I simply have not taken the time to learn it and do it. The same with gardening–hopeless. Again, not true. If I learned gardening and applied what I learned, I’m sure I could be an excellent gardener.

Which brings me full circle–360 degrees back to the focus of The Rich Woman In You: money and investing. Have you ever heard a woman say (or maybe you’ve even said this), “I’m not good with money.” Or “My eyes glaze over when I think about investing.” How about this one: “Investing is too difficult. My mind doesn’t think that way.” Or this: “I started investing but I’m bored with it.” Those thoughts are all coming from a fixed mindset. The growth mindset would say, “I don’t know much about investing today but I can learn it and apply it and probably become a great investor.”

So if you have a fixed mindset, how do you adopt a growth mindset? I’ve found that the first and easiest step is to simply be aware of the two mindsets. If you listen to your words and watch how you react to situations you’ll begin to recognize when you’re in a growth or a fixed mindset. What you say to your kids is another sure giveaway.

When it comes to investing, if you stay in a fixed mindset I believe your chances for success are slim. I see people freeze up when I guarantee them that they will make mistakes with their investments. It’s part of the process. But if you’re in a mindset where mistakes threaten your very existence then what I’ll hear are all the reasons why investing won’t work. In investing, sometimes I win and sometimes I lose, but I always come away smarter and better prepared for my next investment. Making mistakes, learning from them, and getting smarter are all part of the investment process and, as you can see, are ideally suited for the growth mindset.

Investor, entrepreneur and author of Rich Woman, Kim Kiyosaki educates women about money and investing through books, speaking engagements, a PBS TV show and RichWoman.com. Kim and her husband Robert created the CASHFLOW® board games and own The Rich Dad Company.

© 2007 Rich Woman, used with permission