We each have a certain set of beliefs or attitudes towards a lot of things in life – politics, sports, religion, education, and even money. Your money attitude is how you shape your beliefs about money; what it means to you, and what it represents. How do you feel about money – are you greedy about it or are you bitter? And how much does money influence your non-financial decisions?
If you’re a little unsure about your money attitude, we have just the exercise for you.
Find a secluded spot and take out a piece of paper and pencil (or your smartphone, we’re not picky!). Now try to complete the following sentence:
Money is ________.
Money, for me, means ________.
Think really thoroughly about this because this part is important. Before we go through the different kinds of money attitude and how it affects your wealth, you need to determine where you stand.
Done? Now, let’s get started!
You probably had a personal experience to have this attitude so we understand. To some people, money is a tool of power and this power is often abused by them. But that does not mean money is an evil entity that the world has fallen trap for.
Money is a tool and tools are objects that need ownership for it to function. In this case, the evil entity is the person with the money, not the money itself. We can’t control how people use their money but to generalize it something so cartoonish is a big mistake. Despising money so much to the point you are stubborn enough to want to remain poor is a silly mindset especially when you can despise money, be rich AND do good to ease all the bad in the world caused by awful wealthy people!
Money is the most neutral medium out there and it is your responsibility to use it appropriately.
If money really is as unimportant as you believe it, then why are you working to earn money right now?
Money may not be your priority at the moment but don’t look down on its value. It is unfortunate that money controls the majority of our choices but that only solidifies its importance. Money is how we survive in this world and without it, we would be left behind. While money is not everything, it enables you to protect yourself, to build yourself and your family a better life, and to give back to your community.
Money also allows us freedom. You may not crave money the same way others do, but without money, your choices are limited, which may affect your overall enjoyment in life. The moment you stop taking money for granted, you will find wealth much easier.
This attitude is a huge excuse to poor financial management. No one was born being able to do something by themselves. People who are good at doing something are good at it because they learned and they practiced. So, take the initiative to learn how to manage your money.
Financial literacy is related to financial “success” outcomes more so than cognitive ability, according to Sarah Stanley Fallaw. Having the knowledge required to make appropriate financial decisions was what allowed millionaires to be millionaires.
So, take charge. Knowledge is abundant nowadays. Grab a good financial book or just read it up online for free (SyncWealth, anyone?). Consult with experts if you can afford to, or seek advice from friends and family that have a history of good money management. Or listen to informative podcasts available online to get started.
This is false and yet another lazy excuse. Of course, if you want something, you need to work for it. But working hard doesn’t necessarily mean you’ll get rich. Confusing?
If you have the right skills, and you work hard, you may become rich — but as it requires the cooperation of other people, it’s far from guaranteed. If anything, becoming rich is much easy nowadays thanks to the Internet. Publishing a book, creating a company, or outsourcing tasks to people all around the world can be done online. If you’re willing to get creative, you’ll probably find that making money is easier than you think.
Investing is also how most people obtain wealth. If you’re a smart investor, you’ll reap the benefits faster than you can blink.
Being too lenient about money is entirely another issue.
Your love for splurging and spending money frivolously will lead you to inevitable debt if left unchecked. If you spend every cent of your income and not consider the benefits of investments or savings, you will never truly experience wealth.
The trick is to make changes. If you’re addicted to online shopping, delete all your online accounts and block the websites. Put aside a certain percentage of your income into another account, just to be safe. If your hobby is window shopping, invest your time in other inexpensive hobbies. If you don’t make any change, you won’t see any progress.
Being too cautious, on the other hand, prevents you from opportunities that will help grow your wealth.
Never hoard your money. Much like how spending is bad, hoarding money instead of investing will be an issue because cash is not a suitable long-term investment. Look at it this way: Millionaires aren’t millionaires because they don’t spend their money at all. They’re millionaires because their money is reinvested either directly or indirectly through financial institutions that act as their stewards. Access to credit is one of the primary drivers of economic development and growth.
So, never miss out on these opportunities due to your misconceptions.
This is why it is our responsibility to grow and learn from our slip ups. Don’t be anxious about your previous money mistakes – everyone is bound to make them. The important part is that you are aware of them and you’re taking the initiative to change.
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