“Financial peace is not the acquisition of stuff, it is learning to make your money work for you. This is the process of wealth creation.”
1. Take an inventory of your current financial situation taking into account your life style. Look at your earnings and what you spend line by line. Doing this, no matter what your current situation, is a vital step to taking control of your financial future. Based on your earnings, fixed outgoings, and knowing the hard facts of your other spending habits. The set realistic goals. This will help you create a strategy for change.
“Don’t tell me where your priorities are. Show me where you spend your
money and I’ll tell you what they are.” — James W. Frick
2. Change your mindset. This is taking the same desires, circumstances and experiences you have always had surrounding money and changing the story you tell yourself about money and what you consider to be enough. Same experiences, different story.
For example: When you get an unexpected bill; You could say to yourself, “Ahhh! Why does this always happen to me? I work so hard for my money and everyone is always trying to get a piece of it.” Or, you can say to yourself, “Thank goodness I have the money to pay this bill.”
You get more of whatever you focus your attention on. If you are constantly experiencing financial stress and thoughts of lack, that’s what you will continue to receive in your life, because that is all that you will see.
If you focus on all the wonderful things you do have, even if it’s only £100 in your savings account, you will stop being fearful of what you don’t have and start to see what you do have. You will become more resilient, as you gradually begin to realise that your happiness and peace of mind are not dependent, on how much money you have or other external factors.
3. Learning to be grateful for what you already have is the road to contentment. It can be very easy to get carried away by consumerism; so much so that it ruins our ability to think clearly about money and see it for what it truly is. A vehicle to get us to a destination.
People who do not practice contentment, see money as the destination, and so it becomes a never ending cycle of wanting more and never feeling like the “more” is enough.
Practice being grateful for what you have, it is such an important and powerful state of mind, it helps avoid stress and anxiety when it comes to money and life in general. If you are grateful for what you do have, you remove the desire for more. This means you are less likely to splurge on unnecessary ‘stuff,’ and put a misguided value on the acquisition of things.
4. Whenever you have to make a decision you need to understand where your motivation is coming from. Is your decision motivated by a fear of losing something: whether it’s comfort, security, control, money, companionship, or something else?
It’s all too easy to go through life, making decisions, without recognising the underlying feelings that motivate the choices we make. We are as much a product of the choices we do make as the ones that we avoid. Once you understand what you’re scared of; ask yourself; if by not taking a decision are you losing money?
“If we command our wealth, we shall be rich and free. If our wealth commands us, we are poor indeed.”—Edmund Burke
When you attempt to see beyond your fear, you will be better able to recognise if you are the one who is keeping yourself financially stuck.