One thing that is consistently discussed at every level of churning and MS is a need to adjust your mindset away from conventional wisdom. Those mental blocks can make it difficult for you to take advantage of profitable opportunities, whether you’re dipping your toes in or approaching dolphin level.
In the neverending “what volume qualifies you as a whale” internal dialogue, I’d say that mastering the ability to be comfortable in the uncomfortable is right up there with raw throughput. The mindset shift from why you can’t do something to thinking why not try is huge.
At the beginner level, the conventional wisdom you’re pushing back on is your garden variety Dave Ramsey advice. Getting too many cards tanks your score, you’re going to go into massive debt if you even think about putting a tank of gas on credit, debit card only even if you’re worth nine figures, etc. etc.
Those are pretty easy to push through, especially once you open a few cards with zero effect on your credit score (maybe even an increase), have no problem paying off your card in full, and maybe even take a couple of free trips.
When moving from beginner to intermediate, the mental blocks will be a little tougher. Why does my dog walking business need a business card with an $895 annual fee? Why does this issuer not care if I spend more than my credit limit? Why is it a bad thing to hold on to all of my points until I find the perfect redemption?
Over time, you’ll figure out new ways of thinking to approach these questions too. The torrent of points you’ll earn hitting intermediate status will make you realize that you have to spend money to make money, and that, in most cases, earning and burning while holding on to an emergency fund is more than enough.
However, it’s a little bit trickier going from intermediate to advanced, and advanced to expert.
The longstanding thinking that you’re pushing back on is less related to how your decisions affect an imaginary number that was made up after many of us were already born, and more actual human nature related to money.
Don’t spend all your money in one day. Don’t gamble all your money away. Don’t keep your money in a place with regulations that may or may not exist.
These are deep-seated beliefs that most people that approach this level of the hobby hold true, because you’re probably financially responsible and well organized. That also means that they’re even harder to override.
But a whale will tell you that there’s no better feeling than waking up on a Monday, seeing that your transfers from late last week have settled, and promptly spending that balance down to zero by the end of the day.
And that money may be tied up in a place that “you from a few years ago” would shudder to hear about.
It feels so foreign because it’s the upside down version of the meme of being afraid to check your account balance. I remember when I was in college and my net worth fluctuated between two and three figures. I was always afraid to look, but I needed to, because that determined how seedy the happy hour spot needed to be that weekend.
While we’re on the subject of weekends – is there a bigger mindset shift than being happy that it’s a work Monday and not a weekend or holiday? Until RTP is everywhere, we’ll have to keep snoozing the alarm while remembering “at least I get to run some loops today”.
At an intermediate level, you can likely already see these mindset shifts coming. It’s clear that spending a lot earns a lot, and that points and money often don’t show up when the bank isn’t open.
But somewhere in that advanced to whale level, you’ll need to push back on some of the hobby’s conventional wisdom you’ve already adjusted to, as well. Otherwise, you’ll spend a lot of time wondering why the heavy hitters sound like Dave Ramsey when they’re talking about spending methods.
Topa!
