Wednesday, February 18, 2015

Live Like You're Rich, When You're Not Part 1

Close your eyes and imagine, what would change in your life if you were rich? Would you send all your kids to the best private schools? Would you buy/build your dream house? Would you purchase a car in cash? Would you hire a personal trainer? Seriously, what would you do with money, if you were rich? In order to truly benefit from this post, you must read this 3 part series in it's entirety.

Now.... you're probably wondering, how in the world is it possible to live like you're rich, when in actuality you're broke or nowhere near 'rich'. I'm not here to tell you a get rich quick scheme. I'm not here to encourage getting yourself in debt for the latest designer pieces. What I am here to do is identify the reasons you're financially challenged, help you to fix it, and then help you get to a place where you can have the things you want, without having billions of dollars, or being thousands of dollars in debt for the rest of your life.

In part 1, we will identify the 2 reasons why you are financially challenged. Are you ready for the harsh truth? Here we go!

1. Having a Poor Mentality
Constantly  confessing that you're poor, broke, or don't have money  is a major part of having a poor mentality. In order to change anything in your life, you must first  change your mindset, the way you think, being able to be optimistic at all times...etc. Being poor is more of a mental thing, rather than lack of having actual cash.
 
You can have all the money in the world, but if you have a poor mentality, it will disappear in days, without you even knowing what you spent it on. The first way to fix a poor mentality, is to acknowledge the fact that you have one. Here are some things to identify whether or not you have a poor mentality, do you:
  • Constantly fixate on having more money,
  • Join pyramid schemes or do things that will supposedly get you rich quick,
  • Envy people with expensive things, because you can't afford it,
  • Spend money on things that you can't pay for, with the balance in your debit/savings account,
  • Focus on things you wish you had, rather than things you do have?

If one or more of these things are true about yourself, I'm sorry to break it to you, but your mentality needs some work. Don't worry, it can be fixed.
2. Lack of Budgeting
I can almost guarantee you, that most people that confess to be broke, poor, or financially challenged, do not budget. Budgeting is the  most important thing  you will ever do in your life financially. You should not spend money, unless it is budgeted. If you are not budgeting, you are not making the most of the cash that you do have, or will make in the future. This is why businesses have budgets, and so should you. A budget won't magically make more money appear, but overtime, the better you get at it,  you can have financial freedom and stability. However, lack of budgeting leads to:
  • Spending money unwisely and inefficiently,
  • Being unable to save money(E.g. Never saved more than $10,000 in your lifetime),
  • Having unattainable goals due to lack of money,
  • Not having an emergency fund(your current salary multiplied by six),
  • And constantly being negative about money(E.g. Saying things like, "I'll never be able to afford that.").

Now that we have identified the two reasons why you may be financially challenged, the next step is to fix it. In Part 2, I will discuss how you can fix it.

I was not always the smartest with money. I will admit,  that I had a poor mentality, and never budgeted. I made/spent so much money in my lifetime, and didn't have much to show for it. But overtime I improved, and being married  to an accountant definitely helped. So this series is to help those who were never taught how to be wiser about money.

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Are you financially challenged? What are your thoughts on this subject? Let's have a heart to heart in the comments below. :)

Peace & Love,

          ♥

4 comments:

  1. You are so right... Budgeting and living within the parameters of that budget is critical to being financially successful. Don't spend $50 when you can only afford $20.

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    1. Exactly! Thanks for stopping by and leaving a comment. :)

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  2. I hate to admit it but I guess I have a poor mentality. But it's hard to budget if you don't have money. right now I'm living pay check to pay check, so how can I think differently if I have $86.50 in my bank account, I work for $1550 a month, and have what seems like a million, $1300 or more in expenses!? Please help me.

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    1. Hi Jess,
      Budgeting is extremely important, especially if you're living paycheck to paycheck. If you're making $1550 a month and your expenses may be more than you make, then it's time to cut back on certain things(sacrifice)...examples: cable, internet, phone, unnecessary shopping..etc. When you do so, you will be able to make the most of your money, and eventually stop living paycheck to paycheck.
      Also I will be posting part 2 of this series in a few minutes and I believe it will definitely help you even more. Hope this helps. Thanks for stopping by.

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