People have vastly different attitudes towards money. Some people can be incredibly reckless with their money and constantly mismanage it. Some can be too scared to spend it or afraid to lose it and therefore don’t take any calculated risk and miss out on good opportunities to grow their wealth.
This is why a money mentor can be very handy.
A money mentor is someone who helps you to make money, but how does a money mentor differ from an accountant and financial advisor? An accountant does not really advise you on how to make money, so much as just instruct you on how to minimise tax, and make sure all your accounts tally.
A financial advisor may give you some advice on where to invest, how much to invest and when to invest but be careful as many financial advisors are paid commissions to promote certain financial products such as shares or investments and therefore their advice might be biased and not in your best interest.
A money mentor is basically a coach for your money. They encourage you to reach your true financial potential. They give you the skills you need to keep making sound financial decisions into the future. They don’t just tell you what to invest in, they educate and train you on how to make money today and into the future, as well as help you manage and protect the money and assets you already have.
A money mentor will build your knowledge about money and improve your attitude toward money. They will teach you things you wish your parents told you.
Thanks to a money mentor you will be able to develop a much healthier and more positive relationship with money. If you tend to be reckless with money or have a few bad habits with money, a mentor will keep you on the right path, remind you of your goals, help you avoid costly mistakes and hold you accountable so you can achieve what you want much faster. A mentor is also someone who will challenge you, ask hard questions and help guide you through big financial decisions. Ideally, your money mentor should be someone you admire, respect and trust.
A money mentor is also someone who has made a lot of money and is now willing to share their secrets to success. A money mentor may work as a professional advisor, or they may just be a friend. It could be your successful father-in-law who became wealthy from his family business, and now wants to see you succeed in a small business.
Robert Kiyosaki’s money mentor was actually the father of his best friend Mike. His name was Richard Kimi and he inspired Robert Kiyosaki to create the character of “rich dad” in his best selling book “Rich dad, poor dad”.
Many people who are wealthy lead modest lives, so you might not even realise that someone close to you could become an excellent money mentor. Avoid people who like to appear successful when seeking a money mentor, and instead keep your eyes open for a quiet achiever.
When looking for a money mentor, look for someone who has excelled in the area you want to excel in. If you run a small business, you need a money mentor who got rich by running small businesses. Let them tell you stories about their experiences in business. Learn from their mistakes. Allow them to give you guidance, encouragement and support. Tell them about your challenges. What would they do if they were in your shoes?
If property investment is for you, seek out someone who successfully invested in property. If your passion is the stock market, then you need a money mentor who knows all there is to know about stocks, shares and trading.
Other times, you may search far and wide for a money mentor and go to a range of sources for mentorship such as books, financial bloggers or columns by media personalities. You might not know these people personally, but they end up helping you manage your money well.
Money mentors can guide you personally and professionally, meaning they can help you sort out your personal finances and give you advice on how to make more and keep more. Plus, good money mentors encourage you to examine your past, analyse your present and prepare for a better future.
More specifically, money mentors will help you:
- Work to pay off debts, and teach you how to avoid debt in the future
- Review credit cards and loans, and consolidate debt
- Review all your financial habits and make improvements in your attitude to money
- Set a budget and live within your means
- Develop good shopping habits and encourage you to embrace bargains
- Understand what bank interest is on debts, on savings and on mortgages;
- Plan for your future
- Save and look for high interest reward savings accounts
Luckily, you can find fantastic money mentors online. Do they have books, blogs or podcasts? If there’s someone you’ve come across online that you enjoy learning from or listening to, try to reach out to them through their social media channels. Alternatively, attend events on money and wealth creation, listen to each speaker and try to identify who you could hire as your money mentor.
You can work with a mentor for as long as you like. Remember your mentor will still be growing and experiencing so there is always more you can learn from him. A money mentor is someone you talk to on a consistent basis who helps you navigate any challenges that come up along the way. It’s important when looking to hire a money mentor to have a long-term mentality and not have a closing date in mind. Some people have a money mentor all their life even when they’ve become very successful, because their money mentor helps them see what they can’t see and identify any blind spots they may have. Plus, money mentors allow them to take advantage of their experience, their network and their contacts so they can fast track their success.