The Truth About Your Money Problems
Aug 16, 2019
Do your beliefs around money really affect your bank account? Absolutely!
The truth about money is the opposite of almost everything you've ever heard.
What Money Is and What Money is Not.
The money in your bank account right now is finite.
It is one number, and you have to figure out how to allocate that number to your needs.
If one need increases, another must decrease, or else you will go into debt (but don't do that…).
It's important to understand the practical set of rules to set yourself up for success.
But it's also important to understand that money as a whole isn't finite.
There is not one universal number of money that everyone must share - that’s why credit cards and the stock market are possible.
Personally, I almost never have cash on me.
So the money that I have is really just a number in an account at a bank.
Remember the Great Depression?
Everyone stormed the banks asking for their money in cash - and the banks couldn't provide all of the money in everyone's accounts in cash, because it didn't really exist in physical form.
We can stop thinking of money as the paper money that we use, and start to realize it's just a tool traded to get goods and services.
Most of the time it's not even real, it's just an electronic number that moves from one account to another.
This is why Cryptocurrency can exist. Someone just decided that a non-physical, computer based coin was worth money, and now it is!
Say it with me - Money is Just a Tool.
Money is also not a pie.
Just because someone has a large piece does not mean you must have a small piece.
Someone else being successful does not mean that you have to be less successful.
There is enough money to go around, and in fact the more it goes around the better it is for everyone. (Especially when you decide to support your local businesses!)
There's an activity that's done at a lot of money mindset seminars to demonstrate the way money actually works.
Imagine standing in a circle with 4 other people. You have a $5 bill.
You ($5) - Abby - Brad - Chelsea - David
If you have $5, and you pay Abby to give you a milkshake, you now have the milkshake and Abby has $5.
You (Milkshake) - Abby ($5) - Brad - Chelsea - David
Now, Abby takes this same $5 bill, and gives it to Brad for a Coffee.
You (Milkshake) - Abby (Coffee) - Brad ($5) - Chelsea - David.
Do you see where I'm going with this?
Brad pays Chelsea, Chelsea pays David, David pays Eric, and so on, forever.
A singular $5 bill can provide limitless value, because it can change hands an infinite number of times.
So even when money is in physical form, there is still no limit on it.
100 years from now, that $5 bill is still worth $5, but it will have provided so much more value.
So how can we apply this principle to our lives?
We can ignore the pressure of not having enough money, and realize that we have it pretty good right now!
All of you reading this are either on a computer or a smartphone, connected to the internet, and have enough of an education to read this content. You are doing better than 90% of the world.
Use the Gratitude section of the budgeting spreadsheet for every purchase - an electric bill is a reason to be thankful for electricity in your home!
Shift your Mindset from Scarcity to Abundance.
We can understand that there isn't a limit on money, so there's no need to feel like there isn't enough for us.
There is more than enough, and we are taking steps every day to realize what we have, and make it work for us!
We get to decide to spend our money and create value for others, while also knowing that someone out there is going to spend their money and create value for us.
Be Open Minded.
We can stop being envious of, or ridiculing, those who have more than we do.
We can stop making excuses and really explore these new mindsets and beliefs about money. If you aren't 100% happy with your financial situation right now - what's the harm in trying something new?
The same money that Billionaires have right now could (and most likely will) eventually be ours. Those "Find George" websites that track $1 bills prove how quick money moves, and how far it can go!
Money is constantly changing hands. It will come into your life and then leave again when you decide to spend it.
Now that you understand how money works, make sure that it's always working for you.
When you set your budget at the beginning of the month, you are in a clear head space and working from a place of reaching your goals. Keep this in mind later on in the month when you are going to make a purchase.
If the money isn't in your budget, remember your goals and make a conscious decision to stay on track.
If you really want to spend the money, just know that it has to come from somewhere and it will be affecting another category of your budget. It's your money and your decision. Be intentional, and then you won't ever have to feel bad about the choices that you make.