Learning how to manage your money is the difference between living comfortably and living like you have a really angry monkey on your back. Most of us think more money will solve our problems. But if you have a negative psychology about money and you have bad habits, it really doesn’t matter how much money you have.
You could be making a six-figure income of $100,000. But if you’re spending $125,000 a year, then you’re still broke. Half of the battle in learning how to manage your money is recognizing that you carry some negative psychology on money. The other half is going to work to create better habits.
So, how do really feel about money? Is money an enemy or a friend? Take a moment and picture money as an actual person walking towards you. How would money walk, talk, dress, etc.? And most importantly, how do you feel when money walks by you? The way you view money can either be beneficial or detrimental. If you think money is bad you will not get more of it. You need to realize that money is not bad or good. It’s just a tool and most of us do good things with money.
There is also a difference between poor and broke. Poor is overwhelming, seems permanents, and says much more about your state of mind than your pocketbook. Broke is just a temporary condition, and you can fix it more easily. Having a poor money mindset has nothing to do with how smart you are or how much money you have. It has to do with your psychology about money. There are people who manage their money very well on a modest income because they make choices that match their desired outcome.
You’ve heard the saying “Money is the root of all evil.” Well, Mark Twain added a twist and said that, “The lack of money is the root of all evil.” It’s the lack of money that will control you instead of the other way around.