For many of us, when our money is not feeling the way it should, we end up robbing Peter to pay Paul. However, what if you were to embrace the Matthew Effect in your life? Never heard of the Matthew Effect? The term was coined by sociologist Robert K. Merton in 1968 and takes its name from the parable of the talents in the biblical Gospel of Matthew.
And he (Jesus) answered them, “To you it has been given to know the secrets of the kingdom of heaven, but to them it has not been given. For to him who has will more be given, and he will have abundance; but from him who has not, even what he has will be taken away.”
— Matthew 13:11–12
Essentially, the Matthew Effect says that you get more of what you are focused on and known for. And so small advantages build up to big ones over time.
One of the greatest points of leverage is leveraging your “mind.” Successful property investors just think differently to the average person.
The not so rich have a different way of thinking – a different “reality”.
To put it simply your reality is what you think is real in other words your perception is your reality.
What stops many people becoming successful investors isn’t what they know or don’t know.
It’s what they think they know that isn’t so that stops them moving forward.
They say things like:
- I can’t afford that
- I can’t do that
- I already know that
- That’s wrong
- I tried it once and it didn’t work
- That’s impossible – you can’t do that.
- If you want to become truly wealthy you will need to open your mind to new ideas and develop the skills to take on the possibilities greater than your current abilities.
It’s just too hard to become wealthy from a perception or reality (because your thoughts – your perceptions become your reality) of lack and limitation.
Author Robert Kiyosaki, said in one of his Rich Dad Poor Dad books that a cynic’s reality does not let anything new in, while a fool’s reality does not have the ability to keep foolish ideas out.
So don’t be a cynic or a fool when it comes to helping your money feel better. In order to benefit from the Matthew effect in your life, sit down and think about it the ways you can be seen as an expert. How does the people in your life treat you as an expert and how can you leverage your skills, your creativity, your intellectual property, your net worth, and your reputation to build wealth?
Remember, the Matthew effect essentially says when you have more, you get more. And we also in this series defined money as more than cash. So if you take the two principles, you can begin to see that you are more than what you think. You have more than what you think.
It is now time to work with a coach or a financial advisor to dig up the hidden treasures inside of you and create the Matthew effect in your life.