Having the same income, but one person is always short of money, another has savings. It all depends on how you think about money.
Many people have bad habits and unhealthy views about money, affecting the way they spend and save. That’s why two people with the same salary have different feelings about finances. One person is constantly running short of money, while another is budgeting and managing to save for a down payment on a home.
Money coach and trainer Sarah McCalden (London, UK) believes there are such different perspectives due to the “money mindset”. “Money mindset is all about your beliefs and attitudes about money. It drives the decisions you make and the actions you take to earn, spend, save, invest,” says Sarah.
According to Sarah, the way you spend money and keep it stems from your money mindset.
Illustration: Metro
How to define your money-making mindset?
The money-making mindset has two aspects: the lack mindset and the excess mindset. Sarah gives the example of a young couple. Both earn the same amount. The husband grew up with his parents, who thought they couldn’t afford what they wanted. Growing up, the boy always had the feeling that it was never enough and that something always happened to make him spend every last penny. He said he couldn’t save enough and even if he did, the coins were gone.
“My husband always feels struggling every month, every day. Looking to the future, he feels hard and worried,” Sarah said.
Meanwhile, the wife is not worried about money, because she grew up in a wealthy family. Mom used to tell her “we’re so lucky to have everything we need”. Her parents encouraged her to think, “How can I buy something?”, instead of saying they couldn’t afford it.
She puts £40 a month into savings right after she gets paid and has accumulated savings of almost £500 over the past year. The wife knows she has the ability to prevent herself from using credit cards and using emergency funds. She believes she is good with money and always carries a £50 note in her purse to remind herself that she has money, and is pleased with it.
“Money beliefs are often rooted in childhood. We can’t go back and change our childhood, but we can change our beliefs and attitudes about money,” Sarah said.
She advises being considered and conscious of what we believe. What do you learn from watching your parents talk and use money? What are their fears? What is their point of view? Their rules around money? How do they exercise with their money? What is their attitude to money?
Write these down for a clear picture. Ask the question, if money were a person, how would you describe your relationship to it? What is your family’s purpose of making money at this time? What do you do to earn more money to meet your life purpose?
Think about the people around you. Do they have positive or negative thoughts about money? What do they say and do regarding money? It sounds like a waste of time, but seriously, sit down and write the answers to these questions. In the end, you can completely change your approach to money.
Change your mindset about money by following these steps:
Practice Gratitude
The first thing experts recommend is to practice gratitude. If you are grateful for what you have, you will feel better. Focusing only on what you lack is always thinking “I can never have enough”.
Write a positive affirmation
The second thing, which will take a little more work, is to sit down and write down at least one positive money affirmation. Write the opposite of what you have in mind and program it in your brain. Say over and over that you want to change that mindset.
Learn
Read a book about money. There are many to choose from, but Sarah recommends one of the books to read is “Rich Dad, Poor Dad” by Robert Kiyosaki.
Give
If you feel lacking, buy Big Issue (a cultural and entertainment street magazine that helps the homeless) or take a friend out for coffee. Being generous to everyone will make you comfortable and realize your wealth.
Keep track of your money
Last but not least, keep an eye on your money. Everything comes to you every day. Write it down in a diary or on a spreadsheet. Even if it’s zero.
This one activity, if you do it every day, will completely change your life. Make this a habit.
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