Change your money mindset, change in your finances
They way we think about money drives our spending decisions. Our current money mindset is producing the results we are experiencing today. Until we change our money mindset, we may will not experience the change we desire in our finances.
You can read books on personal finances and attempt to follow the steps. However, if your reading does not change your money mindset, you will fall back to doing what you usually do with money. Have you noticed times you made a decision to change the way to handle money, and then fell back to your old ways?
Your money mindset is what is pulling you back. Your money mindset is sabotaging your efforts. Rather than help you along the way, your money mindset is pulling you back. To change the situation, you need to change your money mindset. With a new money mindset, you can start get different results with the same amount of income you are earning today.
Money mindset – you are either a hunter or farmer
When it comes to managing money, you are either a hunter or a farmer. Your money mindset determines whether you are a hunter or farmer.
The hunter kills the animal and takes it home to slaughter for meat. When the meat is exhausted, he goes for another hunt. This is the employee or business owner who works for wages, earning to spend.
The farmer does the exact opposite. The farmer does not kill the animal. He takes it home alive, brings male and female together to multiply the number or animal. When he needs meat, he kills an animal from his flock. This individual focuses on multiplying the money that comes into her hands. She spends from her profit rather than her wages.
This does not mean an end to all spending. It simply means the focus is on investing rather than consumption. Consequently, you save before spending rather than spend before saving.
This minor shift will change your financial destination. It means the difference between working for money, and having money work for you. This determines where you end up financially – poor, middle class or rich.
Change your money mindset
Changing your money mindset starts from the your thoughts and feelings. When you change your persistent thoughts about money, you start to change the way you feel about spending and investing.
Spending makes the hunter feel happy while investing feels like denial or deprivation. When the hunter feels sad, she goes shopping – retail therapy. Investing makes the farmer feel happy as he watches his money grow (his flock increases). Spending feels painful to the farmer because he sees the potential seed being killed prematurely. This makes the farmer minimize spending so as to increase investment.
If a hunter and a farmer both earn the same salary with the same level of responsibility, the hunter will grow his expenses while the farmer will be grow multiple streams of income. Both will end up in different financial destinations despite earning the same income.
More money is not the solution to your financial challenges. The solution starts with changing your money mindset. When that happens, you start moving in the financial direction your desire, earning money from other sources of income rather than depending on one source only. When that happens, more money simply moves you faster in the direction you desire rather than buying more things.