Managing our finances can seem like an uphill battle when life varies so much and we are trying to keep up with its ebbs and flows. Sometimes financial mistakes are made and other times things like medical expenses and lost jobs make it difficult to stay above water. Whatever life has thrown at you, the important thing is to start today to make solid financial decisions to secure a healthier tomorrow. The first step, though, doesn’t begin with our wallets, but with our mindsets. Our attitudes about money have to be correct so that we move forward in the right direction.
Money Takes Discipline
There is no way around this one. In order to be financially healthy, you have to be disciplined in your finances. Do you track your finances? Do you know where your money where you really spend your money? Make a budget. A budget puts you in control so you control where your money goes. According to a recent BankRate poll, many budgets go out the window in difficult times. This is where a disciplined, financial mindset comes in.
An important part of making a budget is including emergency savings so you are better prepared when an unexpected event rears its ugly head. A person who can be disciplined in their spending and saving is also in a great position to wisely build or re-establish their credit history.
Money Is a Tool
A person with a financial mindset sees money as a tool, and not the source or answer to life’s problems. A recent studyshowed that 44% of lottery winners lose their winnings in five years or less. Why is that? It’s because millions of dollars did not erase poor spending habits, the inability to keep boundaries with family members, the lack of proper financial counsel, or other issues that existed before they hit the jackpot.
As a person with a healthy financial mindset, it is your job to keep money in its place. Your happiness, your dreams, your sense of satisfaction in life should not depend on how much money is in your bank account. You should utilize money wisely to help you achieve your goals and some of your wants and needs, but you are the one in the driver’s seat. You lose that advantage when you are continuously indebted to lenders and you spend all your time trying to dig your way out of debt.
Money is a Journey
An important part of having a financial mindset is being educated, especially as your financial needs change. Right now, you may be concerned about your credit scores and how credit cards can help you improve your credit rating. In a few years, you may be considering buying a home or investing in the stock market. Wherever you are, it is important to be educated to match where you are on your journey and to be ready for what lies ahead. A healthy financial mindset knows they never ‘arrive.’ In a 2015 survey, three in four adults agree that they could benefit from advice and answers to everyday financial questions from a professional. Seek out credible resources to help you grow in your financial literacy.
The key to having a financial mindset is having a correct perspective on money. Money is a tool, and you are the driving force behind that tool that determines how it works in your life. If you are willing to use good resources to develop financial disciplines and commit to them, then your financial health and future will be assured. It is important to have a plan and carry it out day by day, whether you have one dollar or a million. The dollar amount may change, but success depends on the fact that the correct mindset won’t.
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