Our thoughts control our actions and thus our life. Ever since we are born, we are programmed to do things in a certain way only. But it’s important to ask yourself- Is your mental approach to finance keeping you broke? A bad money mindset can become a hurdle between you and your financial goals. Let’s try to break out of our bubbles and see money from a different perspective.
- Most people, even financially educated ones have this notion that having a strict budget in place is a must. Following this rule religiously will bring a time when the budget, which was supposed to protect you will become a burden. A budget is a diagnostic tool, NOT another debt hurling on your head. Don’t turn it into one. Finances are best managed when breathing space is left between rules and execution. Budget is a doctor which manages your expenses, savings and investing habits. A doctor won’t stress you up if you have high fever. He will give you information and medicines to fix the problem. Similarly, the budget should allow you to better understand your money instead of spiking your blood pressure. Creating a budget should bring clarity and happiness, not stress.
DON’T go nuts and bolts about having a strict budget in place. Make budget with a changed mindset, for the purpose for which it is really made for.
- Busting next money mindset will make you smile. Do you think your love of lattes is why you are broke? Good news is- it’s so not true. Keep enjoying your favorite coffee.
Money brings in trillions of feelings in our gut- guilt, anger, frustration. But most of the times, they are just natural human resistance to spending money. Depriving yourself from small pleasures will keep you from attaining bigger savings and investing goals. It is not a good habit to pinch on every penny. When you go about fixating on each cost, you may lose the bigger picture- like finding ways to earn more money.
Remember, whatever we resist, ultimately ends up persisting in our brains. Don’t go on a spending spree, but don’t devoid yourself from small pleasures as well.
- This money mentality is found in most people. Breaking free from it will give you peace. I call it, scarcity money mentality. Do you scrunch yourself every time someone takes money from you? Do you feel everyone on this planet has a hand in your pocket? You aren’t alone. Even I had a hard time breaking from scarcity money mentality. Many people I know didn’t grow up with wealth, so for obvious reasons they didn’t acquire abundant money mentality. The truth is, this is a rusty mentality and can bring numerous unnecessary financial fears.
You can totally bust it. Start from appreciating what you have got in life, a roof, clean water, etc. and remember 80% of all humanity lives on less than 50 rupees per day. As Opera said, “Be thankful for what you have, you will end up having more. If you concentrate only on what you don’t have, you will never have enough.” Second, repeat this line to yourself every time you part with money- bid it a goodbye and say, there is always more from where it came from. Finally, start an emergency fund, fun fund, build your knowledge about money and get on the road to becoming rich!