Changing Your Money Mindset is the Key to Success
We've all read the how-to guides to reach our money goals. Cut costs, reduce debt, save more, create a budget, etc. These are great, and true, and work -- absolutely. But most of those guides leave out one crucial element that should come before anything else -- changing your mindset and the way you think about money.
Here's a little secret: "Rich," "poor," "wealthy," "frugal," these terms don't actually mean anything. Let me amend that: Those terms don't mean anything on their own. In a vacuum, "rich" doesn't mean anything. Rich compared to what? Rich doesn't exist without poor. Now, why that matters is because it shows us that everything is relative.
We're don't have to pigeonhole ourselves into some rigid class system of the haves and have-nots. In other words, you can be happy and live a good life, while still living frugally. It all starts with changing our mindset.
How it Works
Let's run with the getting out of debt example. Getting out of debt should be seen as a lifestyle change, not just a diet. As we all know, diets never work. Maybe temporarily, but eventually the weight comes back. Likewise, viewing getting out of debt as a one time thing will eventually lead us to more debt in the future.
Dieting in the financial world would be like that big S word: Sacrifice. We don't want to make sacrifices. We want stuff and we want to have fun. But we also must learn the difference between what we want and what we need.
Viewing not buying that new car not as a sacrifice but rather as an unnecessary and frivolous expense is how we create a lifestyle change. And that's what we want. Change your way of thinking, and debt will never come back.
So before you start with the all-important budget and number crunching, work on changing how you approach money and your financial independence. Is buying that new purse or watch really worth continually being buried under debt? You may have what you want temporarily, but you're not free. Financial freedom is what will bring long lasting happiness.