You Both Over- and Underrate the Importance of Money

Abstract:

When it comes to money blocks, there are two types of people.

  • Type A: If only I had money to buy XYZ.

  • Type B: Money isn't important.

Funnily enough, they're not really two different types at all, as these two beliefs often occur in the same person. They're both problematic and might keep you from getting what you want, need, and deserve.

Your mission today is to learn why you both over- and underrate money, and how to move past this.

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Task 1: What over- and underrating money does

Let's first look at why the above attitudes might damage your finances. After all, you might argue it's simply a fact that you could buy more things if you had more money.

The problem with this is that you're affirming lack, which will keep you stuck in "not enough" mode. Instead, say: "I'm saving up to buy XY" or "I choose not to buy XYZ".

The truth is, you can always get more. Of course there are truly desperate situations, and those are the exceptions. But most people in developed countries have the opportunity to improve their finances.

If you affirm that money isn't important, you're denying the fact that our world runs on money. Of course you shouldn't value money over people; but it's a vitally important tool for creating a life in security and happiness. Don't underestimate it.

A new kitchen with green cupboard fronts and wooden handles.

Task 2: Step into your power

To change these things, first of all change the way you think and talk about money. I've already provided suggestions for this in Task 1.

In addition, get money smart. Learn about personal finances - read books about money management, visit workshops, get coaching. Start budgeting your income, start saving and always, always know where your money goes.

The next time you want to buy something big, look at where you can

  • increase your cash flow, and

  • what you can stop buying (think clothes, TV license, subscriptions).

Make a plan and stick with it; it’s so empowering to pay in cash.

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Which Of These 3 Decision-Making Types Are You?

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