In this article, you will learn about the 3 thoughts that make money disappear and why you should avoid them.
How many times have you thought: “If I earned more money, my problems would be solved” or “if I had X amount of money my life would be easier”? When you have financial problems you tend to think that earning more money is the solution…big mistake.
The main reason is that money management is not just numbers, profits and increases; the most important thing is your habits.
Surely you have heard the following phrase: “The more you earn, the more you spend”. Does it sound familiar to you?
As you know, it is the reality of many. Every time they are tempted to buy something unnecessary, they tell themselves and others “Money is for spending.” And they always live in ruins at the end of the month.
Also read: The 7 deadly sins of finance.
Keep thinking that money is for spending and you will never have money to spend Click To Tweet
Clearly I am not telling you that earning more money is bad; but not knowing how to use it is. It is for this reason that you can find so many stories of lottery winners who lost everything in a short time.
Sharon Tirabassi’s story.
Sharon Tirabassi won the lottery in 2004 and was awarded $10.5 million. Overwhelmed with happiness at her luck, she spent her money going on vacations to Cancun, Las Vegas, California, Florida and the Caribbean.
He bought a $515,000 house, for which he acquired a mortgage; instead of paying cash. He additionally gifted millions to his friends and family.
Three years after having an opportunity, which most human beings will never have, he lost all his money, his house, and now takes the bus to work; after losing his $200,000+ sports car.
The only remedy to solve your financial problems is to change your habits, not your wallet Click To Tweet
Sharon’s story is not the only one out there.
Are you imagining everything you would have done with that amount of money? More money may sound like a blessing. However, it does not solve your personal problems.
It won’t make your family happier. On the contrary, on some occasions it separates her. Although it may seem so, money will not solve your deepest needs.
Staphanie Jones, creator of the portal sixfiguresunder.com managed to overcome a debt of more than $130,000 dollars from a student loan and assures that earning more will not solve your problems; if you don’t know how to handle the money you already have.
The main mistake is that when people earn more money, they only think about what they are going to spend it on; staying in the same position they were in.
Pay close attention to the following 3 thoughts that make money disappear.
3. Thoughts that money disappears.
1. “I must not change my habits.”
If you have money problems, don’t think you don’t have enough. Instead, analyze why you are spending more than you are earning.
Do you give yourself luxuries that you shouldn’t by trying to appear in front of others? Do you not know how to manage your money? Are you using your credit card more than you should? Do you not know exactly how much money you spend at the end of the year? month? Have you never made a budget?
A sudden injection of capital will do you no good if you continue to spend irresponsibly and persist in spending everything you have. Remember that the basic concept to be financially free is to spend less than you earn and invest the difference.
Also read: 7 financial habits that will increase the money you have in the account.
2. “If I earn more, I spend more.”
Most of the people who have an increase in their income; They see themselves in the need to lead a better lifestyle.
Immediately they get a considerable salary increase, they think about buying a new car, a new apartment or a vacation. And it’s obvious, if you have more money, why wouldn’t you have the right to enjoy it?
It’s okay to reward yourself for your wins. However, remember that earning more money is a new opportunity that you have to save more to invest.
Also read: 17 simple and intelligent ways to save more money.
What would happen if you maintain the same lifestyle but with a higher income? You would have the ability to save not only 10% of your money, perhaps 20, 30 or 40 more; shortening the time it takes to be financially free.
3. “The rich have no problems.”
If you think that the rich and famous have the perfect life, you are sorely mistaken. Both poor and rich have problems and sometimes they increase the more money they have.
Don’t spend your life dreaming of more money to improve it, that’s not always the answer. Instead, look within yourself. It is usual that the changes that you must make are within yourself, in the way you think and how you act in the face of problems.
Have you heard the term “frugality”? If you don’t know it, being frugal is a lifestyle in which you use the minimum necessary resources.
It is spending less than what an average consumer would spend. It is finding a balance between your expenses and your savings. Frugal people do spend, but they prioritize their purchases to ensure that the money that comes out of pocket is spent on things that are really important and valuable.
Earning more money is an incredible opportunity, not to spend but to save and invest. So get to work, set financial goals, budget, save and invest. It’s the only way to get all the money you want and manage it wisely.
You already know what are the thoughts that make money disappear. So avoid them at all costs to get closer to your financial goals.
Also read: 4 Financial Lessons You Should Master When You Reach 30
Wise tricks of millionaires that will save you a lot of money to invest
Compound interest, the key to multiplying your money
And remember that if you are really interested in creating your own business, you can purchase our book “How to create a company while working: Discover how to manage your time, manage your money and motivate yourself while creating a company and working for another” , where you will find all the information you need to found your own company, without having to leave your job.
