Many people are too close to their money and refuse to talk about how much they make, especially what they do with it. This type of behavior leads to people being weird with money.
They never want their friends or family to know how much they make because of this obsessive need to have the upper hand. Also, there can be the possibility of resentment.
Lots of people even think that having a ton of money immediately grants entitlement to treat others, with less money, poorly. Having a substantial income for some even seems to promote the idea that more money automatically makes you smarter.
A huge problem we have as a society is greed. When people start making money they always want to make more. It seems as if everybody has the same goal of making more money than anybody they know.
Money does not make you any better of a person but rather eliminates the insecurity of not having enough finances. People lose sleep at night because all they think about is that next paycheck. This is no way to live, money is not the center of the universe.
It gets to the point where there can be this unspoken, unnecessary idea to never discuss money, ever. This is another problem because those who do not know how to use money properly tend to be the weirdest.
No need to be embarrassed about how much debt you have or your income. It is not your fault you did not learn the rules because society tends to keep the poorer classes under-educated.
Becoming educated in financial literacy is the first step to getting over being weird about money. Knowing about finances will allow you to live more confidently and change your perspective on what it takes to be successful.
Lack of Education
If you need someone to blame for your lack of education, blame the school system. The public school system in America does not teach us what matters most, how to use money.
They rely on our ignorance and entice us to get into debt fast, usually with a credit card. Proper credit card usage is another thing that should be taught in school. Most of us apply for one at an early age and end up paying on it indefinitely without realizing the costs.
According to Federal Reserve data, nearly 50% of Americans carry their credit card balance over monthly. This is not how to use a credit card properly!
Early in life, we are taught wrong to use our income to cover expenses. When you use money this way, you must solely rely on income to pay for your expenses.
College is where most learn about using income to pay for assets and using those assets to cover expenses. When you lose your income, your assets will cover your expenses. This is why rich people keep getting richer; because they know about assets and their value.
Rich people will always be rich because they are taught the rules of money whereas the poorer classes need to figure it out on their own.
Regardless of where you are in life, you can always educate yourself and begin the proper journey of making money work for you. No need to be weird about it and allow how much you make or not affect your everyday life.
Life is not about money, but rather about the experience and how you let things get to you. Material items do not have true value, only monetary value and the short-lived happiness that comes with it.
Related Article: “How to Use Credit Cards to Build Good Credit“
Living a High Life
Imagine going from barely being able to pay bills, to paying all your monthly bills with one week’s worth of work. Seems pretty awesome now that you have three more weeks’ worth of pay to do what you wish.
Living a high life is what most people do when they are making a large income. The fancy cars, big houses, vacations, and jewelry may seem appealing to some, but what happens when all that income suddenly stops?
Now, you catch yourself in a difficult position where you may lose your cars, home, jewelry, etc. If you have plenty of passive income and savings, then maybe you would be ok living this way for a while.
Those who aspire to live this way always find themselves stressed because once the bills start coming they are locked into paying them. These material items have no real value in life and you will get bored eventually.
The major problem with having a higher income and not knowing what to do with it will lead you right back into being broke. Just because you make more money does not mean you are managing it properly.
We all aspire to live the high life but sometimes it can feel fake, as if when achieved, it did not reflect your ideology. Comparing yourself to others will rob you of joy and you will never be happy.
If you do not desire this lifestyle then you are in a good place mentally and will not allow society to dictate your everyday moves.
However, being able to afford to live a high life and doing it are two different ideas. Be careful not to let others dictate poor spending habits on useless things. Saving is your best option until you decide on how to invest your money.
Millionaire Mindset
The difference between a millionaire mindset and living a high life is vastly different. The idea of wanting to become a millionaire starts with your expenses and how much of a percentage you save.
Making a lot of money will not change your idea of saving which is the problem. Most people say that if they made more then they can save more. In no way does this work because of the lack of discipline.
Having a higher income leads to an increase in expenses which can slow your way to becoming a millionaire. The best thing to do is take a percentage of your paycheck and put it in a savings account, yielding you more money over time.
People that tend to be millionaires may live paycheck-to-paycheck but it is what they do with their money that matters most. Some ideas to help you get into a millionaire mindset would be:
Buy a lower-cost, used quality vehicle that has low overhead to maintain. Some cars, like Cadillacs, have replacement parts that cost three times as much, only because it says Cadillac on it.
Avoid buying a new car because the value drops the second you leave the lot. It makes sense to buy used with a warranty and save all that money.
Living in a place with low property taxes will allow you to save even more. If you aspire to become a millionaire later in life, avoid living on a golf course, even if you can afford it.
Coupon shopping: Just because you can afford to buy at full price, does not mean you should. Instead, wait a bit for an item to go on sale or use a coupon. The extra money saved on the purchase should go right into your savings.
Allocating Your Money
Get yourself in a position to afford high-priced items but choose not to buy them. At any time it may be tempting to spend a ton, but you most likely are not accounting for guaranteed mishaps. Starting a budget plan is a great way to see exactly how much you are making and where it is all going.
Have you ever thought about saving or donating money but only if you made more? Eventually, you will make more money and still have an excuse not to save, because you still are not making enough. When people make more, they spend more, plain and simple.
This poses a problem because to become a millionaire we must learn to save and cut expenses anywhere necessary.
The best thing to do in this situation is the 50/30/20 rule. In this rule, you use 50% of your income for needs (rent, utilities, food, etc.), 30% for wants (dining out, entertainment, etc.), and 20% directly into a savings account.
If you have direct deposit, set it up so 20% goes into savings immediately without you even seeing it. After six months of doing this, you will be shocked to see all that savings from committing to this tactic alone.
You could always have an envelope that you put cash into or other online banking accounts like PayPal or Venmo. Constantly put money in all these accounts and consider starting a Roth IRA.
These are great ways to begin your millionaire journey. Your goal is to become obsessed with saving money and not the opposite. Always find ways for your money to work for you.
Sharing with Others
It is important to share what you do with your money because having a lot will bring more responsibility. More responsibility means you have to be mature about using money properly.
If you want to spend every penny you make on toys, vacations, etc., then go for it however, keep in mind your friends may not be able to go on that vacation with you because of their lack of income. Things like this could alter friendships as well.
Instead, you could show them how to use money wisely to increase your income even more. When you are responsible enough to share information, you should. Our schools do a terrible job of teaching us about how to spend money. This is why somebody who has a lot of money needs to be responsible and educate others on how they can do the same.
No need to share your money with people, but share ideas of what you do with it and how you make it work for you. People become jealous when somebody else makes more money and resentment will show itself.
Your friends and family will support your dreams until they realize how much more money you make than them. They will either support you or show signs of resentment, the ladder being more popular. They want you to succeed, but not more than them.
When having a high amount of money you can choose what to do with it and hopefully, you do it smart. For example, does it make sense to buy a vehicle that makes you no passive income or buy a house that will?
Making decisions like these will allow you to be more mature about money and face the challenge of becoming a millionaire during your retirement years or sooner.
Insecurities of Money
Some of the biggest reasons for being insecure with money usually start from upbringing. For those who grew up with a financially struggling family, you may view money differently as an adult when you have your own.
You may be able to afford retail prices now but still, coupon shop to save even more. Thinking this way shows signs of being financially literate and allows your thinking to adjust. As the great Kramer once said, “retail is for suckers.”
Common money insecurities may include:
- Scarcity Mindset. The belief is that there is never enough money to go around. It often stems from childhood experiences or financial hardship. People with this mindset may hoard money, be afraid to spend, or constantly worry about running out.
- Fear of Failure. This can manifest as a fear of making bad financial decisions, losing money, or not being able to provide for themselves or their loved ones. It can lead to inaction or unwise, impulsive choices.
- Comparison to Others. In today’s social media-driven world, it is easy to fall into the trap of comparing one’s financial situation to others. This can lead to feelings of inadequacy, envy, and shame. You are not in the same life race as other people.
- Guilt and Shame. These emotions can arise from past financial mistakes, overspending, or having more or less money than others. It can lead to the avoidance of financial matters altogether which is something that must be faced head-on.
- Lack of Control. Feeling like you have no control over your finances can be incredibly stressful. This can stem from job insecurity, unexpected expenses, or simply not having a budget or financial plan.
It is important to deal with insecurities from everything in life especially money. Chances are you used your time to make money and that time is something you cannot get back.
Related Article: “Nip it in the Budget: How to Resist Spending“
Overcoming Money Insecurities
Developing financial literacy is the biggest step you can take to feel more secure about money. You must understand budgeting, saving, and debt management because it will make you more confident in making financial decisions.
When battling financial insecurities you must take action and hit it head-on before it worsens.
First start by creating a budget plan. A budget is a powerful tool for taking control of your finances. It helps you track your income and expenses, identify areas where you can save, and make conscious spending choices.
Next, you must do everything possible to maintain proper discipline for this to work. Only you can achieve the right discipline which may be the hardest thing you have ever done.
Here are some other ways you can battle money insecurities:
- Acknowledge and Challenge Your Beliefs. Become aware of your negative thoughts and beliefs about money. Ask yourself if they are truly accurate or based on past experiences, fears, or what others say.
- Set Realistic Goals. Start with small, achievable financial goals. As you accomplish them, you will build momentum and confidence to accomplish harder goals.
- Seek Support. Talk to trusted friends, family, or a financial advisor about your money concerns. Sharing your struggles can help you gain perspective and find solutions. If you need help, get it!
- Practice Gratitude. Focus on what you have rather than what you lack. Appreciate the financial resources you do have and the opportunities they provide. Having gratitude will eliminate anxiety.
- Practice Self-Compassion. Everyone makes financial mistakes at some point. Be kind to yourself, learn from your errors, and move forward.
There is no need to feel ashamed or embarrassed about your misuse of money. Just because you see people with a nicer house than you, better vehicles, etc., does not mean they have it figured out either, and they may also be weird with money.
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