Financial Mindsets

Your financial mindset is a crucial part for financial success. A lot of financial experts say that personal finance is more on perspective than numbers, so if you have a healthy mental conditioning on your finances, you are in a better position to move forward financially. But if you constantly find yourself in financial struggles despite your best efforts, your perspectives may be holding you back.

I Need More Money to Become Happier

Money can afford you things and experiences that can make you happy, but it’s wrong to anchor your happiness to how much you’re worth. Yes, you need money to survive – buy food, afford transportation, keep your shelter and so on.

However, if you believe that you always need the fanciest food, the newest transportation or the bigger shelter despite your income, then you’ll always be held back by these choices you make.

I Need More Money to Outshine Others

Keeping up with the Joneses is a good way to deplete your savings and get deeper into debt. In fact, keeping up with them is a sign of insecurity which isn’t just financial in nature. Instead of focusing what others think about you, focus on your own needs and what’s valuable to you, whether it’s better or grander than that of the Joneses.

I Can Never Get Out of Debt

If you say this even without trying, then you’ve already lost half of the battle. Sometimes debt can feel insurmountable that you’d rather incur more, ignore them and never make the effort of digging your way out. Instead of looking at it as a mountain, focus on the smaller hills first. Getting through your smaller debts will give you the mental fuel to tackle the bigger ones.

I Don’t Need to Plan for Retirement Just Yet

You might think that retirement is not in your immediate need, especially when you’re still young has just began your career. But the truth is, there is no better time to plan for retirement than when you’re still young because you have the power of compounding interest on your side. Take advantage of your employer’s retirement package, automate your retirement savings and contribute to it regularly to enjoy a financially secured life in the future.

I Only Live Once

This is a very convenient excuse for people who do not want to save. There’s nothing wrong if you want to do the things you want to do today, but don’t do it at the expense of your future. You can still enjoy life by striking a balance somewhere between a meaningful present and secured future.

If you look at money this very same way, it’s about time to turn your mindsets around. Having a better and healthier financial perspective will prompt you into action. Sooner or later, you’ll find yourself in a much better financial position.