Recently I read a book on finances and entrepreneurship, The Millionaire Fastlane by DJ DeMarco, and the author gave an excellent piece of advice. He said, “Be an owner, not a consumer.”
The author mentioned this phrase within the context of achieving financial freedom, and went on to write that the only way to do this is through a shift of the mindset.
The average mindset in this country has shifted to being a consumer instead of an owner. Most people seem to believe that wealth is built by possessing more things.
However, the true path to wealth (and “wealth” takes many forms) doesn’t usually take that direction. To illustrate my point, here are several ways that being an owner differs from being a consumer.
Traditional advice says that you should be smarter about your purchases, and I wholeheartedly agree. Some people, though, take that to mean that you should never buy a nice car or nice clothes. I don’t particularly agree.
I believe that it’s your mindset that makes all the difference. If you look at a seemingly extravagant purchase through the eyes of an owner, you’ll see a long-term investment. On the other hand, a consumer sees short-term gain, trendiness, and disposability.
Here’s what real estate looks like to the average consumer. They want to live in the nicest, trendiest locations and will pay a large amount of rent to live there. They don’t often consider the long-term potential or the growth of the asset.
Real estate owners, on the other hand, exhibit a certain pride that comes across loud and clear. Whether you’re a landlord or simply own your own home, ownership leads to improvement.