• Mindset Matters Most

    by  • November 5, 2011 • Job and Career, Money Management and Planning, Seven on Saturdays • 0 Comments

    #7. BeatingBroke brought up the idea of a self-imposed layaway plan. The idea is simple. Think ahead to all the expenses you know you’re going to incur in the next 6 months or a year. Then set aside a portion of the total cost from each paycheck until you have enough. This technique has worked really well for me, making recurring and longer term expenses something I mostly don’t even have to think about.

    #6. I’m a big believer in mindset being the key element to breaking free from financial weakness. You have to believe that you can achieve the type of freedom from worry and despair that comes from not having enough. It’s OK to have enough. There are children starving in Africa. Heck, there are children starving right here in the United States. But you won’t be able to help them until you are financially strong. Don’t use how little they have as an excuse to justify how little you have as enough.

    So how much is enough? Enough is more than you need but less than you want. That’s the sweet spot.

    SavingAdvice.com shared some thoughts on How Rich People Think. Some really good ideas in there. For example “Vaccinate yourself from Either/Or Syndrome”.  You can live a balanced life while earning lots of money. You need to figure out what works for you and then manage yourself and circumstances around you in order to achieve the balance that works for you.

    Another great point made in one of the comments on that post is that wealth can take more than one generation to achieve. Perhaps you won’t achieve the level of wealth you’d like to. But if you make good progress, and teach your children all the lessons it took you so long to learn, they have a good chance to do much better than you did. And that’s still a success!

    #5. Is your career where you want it to be? Probably not. If it is, that’s awesome! But it won’t stay there forever. Flexo shared 5 Reasons You’re Unhappy With Your Career Progress. Again, this all comes back to mindset and managing your relationships with those around you. Solid stuff Flexo!

    #4. Here are some thoughts I had after reading MoneyCrush’s post on Believing Becomes Doing.

    Belief and faith (religious and otherwise) is the start of everything worth doing. The difference between the possible and the impossible is just whether or not someone else has yet been able to do it. Once one person does something, then everyone else knows that it’s possible. Those others get their faith from the actions of that first person. But how did that first person know that it was possible? They had faith.

    Having faith and believing in something isn’t about being right or wrong. It’s about trying. Without effort and desire, nothing of value can ever be created.

    Some incredibly smart people never actually accomplish anything. One reason for this is that they are more interested in having the “right” answers than they are in creating anything. They identify themselves as “being smart”, as though being smart was an accomplishment. Being smart isn’t the achievement, what you’re able to accomplish is the achievement, and being smart is desirable because smart people have greater potential to achieve than others. That said, I think that the idea of being smart is kind of baloney because different people are capable in all sorts of different ways. The ability to recall facts and figures and perform various calculations in your head is only one kind of smart.

    The idea is that potential is nothing but raw ingredients. Belief is the recipe. And only when you combine those two with some effort do you get anything worthwhile.

    #3. FrugalDad had two awesome posts this week. The first was titled Getting Into Financial Shape with the Decamillionaire Next Door. This was an awesome post which covered three of the ideas that I share with anyone that will listen (thank you readers): the importance of cash flow, the importance of having the right mindset when it comes to money and that how much money you make is less important than what you do with it.

    #2. The other post that caught my eye over at FrugalDad was The Issue of Combining Finances. The issue of combining finances is a major one when it comes to couples. But, as FrugalDad mentions in his post, there are lots of ways in which finances can be combined within a relationship, and marriage doesn’t even need to be a part of the equation.

    #1. This week’s top spot goes to Amazon.com for yet another phenomenal piece of innovation. As the saying goes, what’s old is new again.

    This week Amazon.com released a feature called the Kindle Owners’ Lending library. Each month hundreds of titles are made available to borrow for Kindle owners with Amazon Prime subscriptions. The books are borrowed out for one month. There’s no cost to borrow, and when the month is over the book simply disappears from your library. Thus, no late fees.

    This might hurt local libraries. Though I hope not. But the idea is still awesome.

    I think this is worth mentioning on a blog about frugality because it makes so much financial sense. A kindle Fire (the top of the line model) costs $199. An Amazon Prime subscription costs $75 for a year. That’s about $300 with taxes. For that I can purchase books on the Kindle for a fraction of the cost of physical books. Then I can borrow books for free. That’s way more than read books-wise, though some people read a lot more, making this a money-saver. Then, Amazon has recently made streaming movies and TV shows available for free to Prime customers. So, while this might not suit everyone, I can cancel my cable (something I did years ago anyway) and still get to watch a ton of the shows I like. I can read more than I’m able to read, for a fraction of the cost. And then with a device like the Kindle Fire, I can do email, browse the web, use apps, play games and everything that I now do on my expensive iPhone, for about half of what I paid for my iPhone. It’s an awesome deal.

    Photo credit.

    About

    I had an unhealthy relationship with money until my early 30's. I write about how I developed a healthy relationship with money. I share ideas about personal finance that have helped me to break the cycle of living paycheck to paycheck and achieve greater financial freedom.

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