We can alter our lives by altering our attitudes. The mind is a dutiful servant and will follow the instructions we give it. Mind and money share a close relationship. I can say that from personal experience. Whenever I’d make enough money, I’d go on to invest, pay off my debt and do whatever. It’d vanish. Thus, a realisation dawned on me that no matter how much money I made, it was never enough! I had to change my attitude towards money.
What does money mean to you? It’s helpful to understand that. I am sharing below a classification of people based upon their monetary attitudes. If these are taken to an extreme, these can sabotage a person’s wellbeing.
Spenders: You only live once philosophy. No kidding! Dead giveaways – new clothes, latest accessories, credit card vacations etc. Spenders live in the present, are forward thinking, fun to be around and often the envy of their friends. They like money for the things it can buy. Danger zone – can get into trouble when they spend everything they have, and more.
Builders: Money is a tool. They use it or sometimes even risk it to turn their plans and dreams into reality. Danger zone – because they are so intent on building, they miscalculate the risk involved or fail to leave a margin for error like the entrepreneur, who keeps expanding the business without creating a cushion in case of a failure.
Givers: Charities, relatives and friends love them! They feel wonderful taking care of others, denying themselves of things and sometimes even necessities so that they can leave something for the children or buy gifts for others that they would never buy for themselves. The danger lies in ignoring their own needs. By doing things at the expense of their financial independence, they risk ending up being a burden on their children in the long run.
Money Avoiders: You need to challenge your belief that money management is tedious and boring, or that you just cannot understand it. Start to educate yourself about money to build up confidence in your own ability and judgment.
Money Procrastinators: They think that they don’t have enough time to learn about money, or that it will be too complicated and unpleasant. They must regain their money power by concentrating on getting past such illusions. Money Dependents: They avoid money matters. They should seek assistance instead. However, they could surrender their financial well-being to others (partner, friend, financial advisor) without knowing enough to ensure they are in good hands. They should sharpen their financial knowledge to be more confident about their own expertise and judgment.
We’re all influenced by money messages from childhood. Think about your attitude towards budgeting, spending, planning, goals and savings. Revisit your childhood to see how you were influenced by events or attitudes of those you looked up to.
Some habits of ineffectiveness are rooted in your social conditioning towards quick fix and short-term thinking. However: It’s never too late to start financial planning.
The quick, easy, free and fun approach won’t work on your retirement fund, college education for your children or your family’s welfare and security. A little is better than nothing; saving money is a good habit.
If you don’t save anything from your current income, you won’t be able to save anything from your future income either.
Pay yourself first, take at least 10% off the top to save and invest. Clearing up debt is a short-term pain for a long-term gain.
The interest you pay is money that you cannot spend on yourself.
Let compound interest work for you and not against you.
If you do not want something in the first place, it is not a deal, no matter how cheap it is.
By taking care of yourself, you are helping others.
To overcome the pull of ‘Habittudes’, the powerful restraining forces of culture, custom and habit, count the costs, then rally the forces necessary to bring about the desired change.