What is your vision of financial independence? Most of us have an idea of what it looks like, but no roadmap to get there. We may want to accumulate savings, clear down credit card debt, make investments and build up a nest egg, but sometimes these money goals can seem remote and unreachable. Can an ordinary working person hope to reach the point where money is no longer a worry? Our beliefs about financial matters are usually pretty ingrained when we reach adulthood. But could these preconceptions actually hold us back from achieving freedom in money matters? Here’s how to break the bonds and reset your thinking when it comes to cash:
Recognise Your Prejudice
The attitudes that we hold about money can be pretty rigid, and often they take the form of unconscious bias, where we don’t recognise that they exist. So the first step is to identify what money means to you, and to challenge those notions. For example, we may have grown up believing that buying something is always better than renting, or that we don’t have to worry about retirement until we’re over 40. We may see the stock market as a risky investment or see owning a home as a safe one. We need to learn how to focus on the figures. When it comes to financial sense, eliminating emotions and attitudes and just focusing on the figures is always the right option.
Know That Money Matters
Too often, we tell ourselves that money is not important. That it’s morally wrong to be interested in it. That we don’t need money to make us happy. But that is not strictly true. Although money itself will never be a source of happiness, the freedoms and the choice that it gives you in life most definitely are. Financial independence means having options, and not being forced down one route because of the necessity of paying the bills. All value stems from rarity, and what’s rare in our lives is generally time. Money is a tool that can give us back time- with our families, for volunteering for a cause we’re passionate about or for pursuing creative fulfilment. Until you are free of financial bondage, you’re on the wrong side of a deal- trading your time for money. Learning how to save, proactively managing your money for the best return and taking practical steps to maximise your income, minimise your bills and find a tax attorney has the power to flip that equation and put you on the side of profit.
The Scarcity Bias
Many of us have been set up to believe that money is rare. It’s something hard to come by, that we need to hold onto tightly and not waste. But by believing our opportunities are limited, are we limiting ourselves? The law of attraction may sound like a hippy concept, but money is an energy that you can encourage into your life by making positive plans. Whether it’s starting up your own business or making informed investments, what you put out there is what you will receive back. Effort equals profit. So instead of using money as a demotivator, get out there and start creating. That is the way to draw more money to you.