Imagine money as a person? What will it say about you?
Well, if money was a person it would probably be the most important person in our life, because we depend on it for survival and i’m really curious to know what it will say about you.
We work hard to earn our money. But regardless of how much we earn, the money worry never goes away. Bills, rent, medical costs, vacations, kids’ education and, somewhere at the back of the head, the niggling fear of being underprepared for our own retirement.
Wouldn’t it be wonderful if our money worked for us just as we work hard for it? What if we had a proven system to identify dud investment schemes? What if we could just plug seamlessly into a simple, jargon-free plan to get more value out of our money for tomorrow, and have a super good life today as well?
In cultivating a better relationship with money, there are 2 myths that need to be debunked;
MYTH 1: I can’t save because I don’t have a lot of money
When your expenses outweigh your income, it is impossible to save. You can’t save money because you’re spending more than you’re bringing in, and you don’t have anything available to save.
Making purchases that stretch the limits of what you can afford doesn’t seem too bad when you can’t see the cash leaving your hands or your bank account.
There are many areas where you can change your habits and cut back on your expenses. Your housing costs may be too high for what you can comfortably afford. Maybe you’re eating out too often or overspending on shopping.
Looking through your bank statements will help you determine areas where you’re overspending. Giving yourself a spending limit via your budget curbs your spending and will hopefully prevent overspending. You can’t save money while spending more than you’re bringing in and living beyond your means.
MYTH 2: The higher my income, the wealthier I am
Wealth is the value of all your assets less debts that are accumulated over time. Earning more doesn’t necessarily mean an increase in wealth as the old saying is a known fact that “the more you earn the more you spend” re-emphasizes this truth directly or indirectly. Wealth takes discipline and patience and long-term investment to build. So as you earn more, invest more. Savings preserves money, investment multiplies it.
By doing away with these myths in your mind, you are amending your relationship with money. Money wants to have a great relationship with you, you should want it to.