One of the most common financial pitfalls out there is having a poor money attitude. And among the worst money attitudes is the idea that all you need is more money, and that once you have it, your financial problems will be solved.
How Do You Manage Your Financial Resources?
There are some situations in which a lack of money really is the issue. If you’ve lost your job, or had a major and unexpected financial catastrophe, more income will really help. If you already have a steady income, however, your problem might not be that you aren’t “rich.” It might be that you’re not managing your finances as well as you could.
It doesn’t matter how much money you have if you don’t manage your resources so that you’re living within your means. If you don’t live within your means now, chances are that you wouldn’t live within your means if you had more money. More money is likely to just mean that you experience lifestyle inflation, which also means that you’ll still be in debt.
Think of all those wealthy athletes and other celebrities who end up going broke. Their problem isn’t that they don’t have a lot of money. It’s a management issue. Before you can solve your financial problems, you need to look at your money habits, and the way you manage your financial resources. Until you start employing sound financial management principles, you’ll always have money problems — no matter how much you make.
Take Charge of Your Finances
One of the biggest problems with the “more money will solve my financial problems” mindset is that it encourages you to hand over your financial destiny. When you say that you need more money in order to fix your situation, you’re relying on outside forces. You essentially choose to make yourself impotent in your own financial destiny. Instead of taking charge, you’re waiting for something else to come and “save” you, whether it’s getting a raise or promotion, winning the lottery, or receiving an inheritance.
The idea that more money will solve all your problems is a very passive mindset. Instead, if you really want to tackle the root of your financial difficulties, you need to change your mindset to one that is more active. Recognize that you need to make changes in the way you view your situation and the way you think about money. Reflect upon what actions you can take to improve your financial lot in life.
Even if you’ve experienced an unavoidable financial setback, it’s possible for you to take charge of your situation and move forward. Think creatively about how you could earn more money. Think about how you could work smarter, as well as harder, and how you could put your money to work for you.
Recognize that you can make a change. You don’t need to wait around for someone else to grant you a higher income. You are in charge of your own financial future.
Have you fallen vicim this attitude before? How did you overcome it?