Your Attitude to Money is Important

Thiniking about your finances

Photo by Mathieu Stern on Unsplash

Your Attitude About Money Can Make or Break Your Finances

Many people state they want to be rich but have no clue how to make that happen.

Many of these people wander through life hoping for some windfall to happen. Perhaps they will win the lottery, or a great-lost uncle will pass on a huge inheritance.

Either of those scenarios is unlikely for most people.

If you want to create wealth, you must alter your attitude about it.

Start with the understanding that wealth creation is a slow and steady process. If you learn this one aspect, it will serve you well in your life. If you try to hit a home run with your finances, you are more likely to strike out. It’s better to get base hits and do that consistently.

It’s easy to get caught up in the hype when you see the financial spin doctors report on high-flying investors. They profile rich investors who seemingly made their gains in short durations. What they fail to show you is the journey those investors took. Many of them started out exactly like everyone else. They just made wise choices with their money.

You need to create a plan for your finances. For instance, if you have racked up credit card debt, you need to make it a priority to get out of that.

Don’t invest money when you owe on your credit cards.

You simply won’t be able to make up for the high interest charged by the credit card companies. You may be lucky for one or two months. But, your overall performance will be much less. History backs this up.

No plan is complete without a realistic budget.

You cannot spend more than you earn and expect the wealth-creation engine to continue. You need to determine your incoming funds as well as your expenses. Work towards getting your inflows of cash to be greater than your outflows.

It’s not enough to have your cash inflows equal your cash outflows. That equilibrium is a situation known as living paycheck to paycheck. The biggest problem with this is when you have a time where you need to spend more than your inflows of cash, such as an emergency, it will tip the scale towards having to borrow money. Even if you never run into a situation where you must spend more than you make, you won’t get ahead.

Having the right attitude towards wealth creation will help you take the necessary steps to make that a reality. It will be an adjustment in the beginning. But, the rewards will be well worth the effort.

SIX WEALTH ATTITUDE ACTION POINTS

a) Bring your finances under your control – don’t rely on windfalls or lottery wins!

b) Make a careful note of your outgoings and income. In business as well as in day-to-day life CASH FLOW is KING.

c) Budget – plan your spending

d) Clear your Credit Card debts in a planned way.

e) Think of your money as a the thing that brings choice; it’s not the root of all evil or ‘filthy lucre’. What you do with it is what gives it value.

f) Allow money to flow easily through your life in the sense that, because you have made clear financial plans, it is not the main thing to worry about.

Invest, Use and Enjoy!

Alan /|\

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Elyn Bres is Cornish for Clear Mind