These eight mental, psychological, and everyday habits will help you build the right relationship with money.
1. Develop a budget
This boring activity is necessary to stick to basic goals. A financial plan helps you prioritize and avoid impulsive spending. Also, it reduces the degree of anxiety; if money is spent haphazardly, there is always a chance to be stranded a week before the paycheck.
Read also: 10 Tips for Those Looking to Get Rich.
2. Be able to accept and calculate risks
Investing in any dubious get-rich-quick scheme, as well as being afraid to invest, is wrong. You need to invest money. But before that, you need to find out which opportunities to meet your financial goals and calculate the likely risks.
3. Avoid unhealthy competition
Comparing yourself to others is a dubious choice. If a person buys a newfangled car or a huge apartment to emphasize superiority over others, he is simply wasting money and energy. It also removes itself from the realization of significant goals.
It is important to create your own vision of success and move towards it in your own way.
4. Separate your personality from money
Financial independence is also independent of finances. So the size of salary or savings should not affect your self-esteem, for instance
- Human dignity should not suffer even with modest wealth.
- He shouldn’t want to brag about incomes, even if they are really high.
5. Don’t get hung up on things
Financially free people care about their belongings but do not create a cult out of them. If necessary, they can give up excesses. Therefore, there are many other pleasant moments in their life and not just banal hoarding.
6. Base your financial strategy on your values
Time and money should be spent on what is important. If a person wants to break out of poverty, he can work overtime. If a person wants to spend more time with his family, he should abandon additional projects. This way, everyone builds relationships with finances (and finances) based on personal priorities.
7. Be able to resist momentary desires
Often, people justify their impulsive purchases with a phrase like, “I deserve to be happy.” A person striving for financial independence is far from such thoughts and actions. He will not spend money on a new smartphone model or a spontaneous journey if he cannot afford it at the moment. He has self-discipline and knows that some purchases are best made later or not at all.
8. Have a purpose
This is a cross-cutting thought of many previous points. Money is a means to an end. Not the other way around. It is the person’s goal that should determine all his financial decisions.
Adapted and translated by Wiki Avenue Staff
Sources: Life hacker