How to Stop Negative Thoughts About Money

How do you feel about money? It’s a question that often goes unasked, yet our emotions wield significant influence over our financial decisions.

For those struggling with their finances, negative thoughts about money can become a formidable barrier, fostering feelings of frustration and resentment.

But here’s the catch: if you hate money, how can you ever expect to have more of it? To change your financial situation, you must first change your mindset. In this article, we will explore effective ways to overcome negative thoughts about money and cultivate healthy financial habits.

#1: CHALLENGE YOUR BELIEFS ABOUT MONEY

Begin by challenging your beliefs. Ask yourself whether your perceptions are grounded in facts or mere assumptions. Are there examples of individuals who have achieved financial success without compromising their values? Challenge the notion that financial prosperity is inherently tied to negative consequences.

#2: SWAP NEGATIVE THOUGHTS WITH POSITIVE AFFIRMATIONS

Swap out self-limiting beliefs with positive affirmations. Instead of saying, “I’m not good with money,” embrace a more constructive outlook like, “I am capable of learning how to manage my finances.” This shift in language can have a profound impact on your mindset and financial decisions.

#3: ELIMINATE THIS ONE PHRASE

Banish the self-defeating phrase, “I cannot afford this.” Perhaps, your parents instilled this phrase in you when you were young. Repeatedly uttering this phrase programs your mind for scarcity. Instead, adopt a more empowering vocabulary. Remember that our words and thoughts shape our lives. As a famous saying goes, “As a man thinks in his heart, so is he.”

#4: CHALLENGE THE FEAR OF DESIRING WEALTH

Don’t let the fear of being perceived as greedy deter you from striving for financial success. We all desire prosperity in different forms! Desire for wealth does not equate to greed. Understand that money is a tool, and increasing your income does not make you inherently selfish. Embrace the idea that financial stability allows you to contribute positively to your own life and the lives of others.

#5: EMBRACE THE RISK OF LOSING MONEY

Successful businesses often require calculated risks and investments. Overcoming the fear of losing money is crucial to growing your wealth. Instead of letting fear paralyze you, focus on making informed investments. Seek opportunities that align with your financial goals and remember that smart risk-taking can lead to substantial rewards.

#6: ACKNOWLEDGE EVIDENCE OF CONTROL

Shift your perspective by actively seeking evidence that you are in control of your financial situation. Shift from a negative perspective to a more positive one. Celebrate even the smallest victories, as they signify progress.

Image Credits: unsplash.com

Transitioning from name-brand to generic cereal to save S$2 is a win. Paying bills on time is a win. Opening a savings account, even without an initial deposit, is a win. Each positive financial action you take reinforces your control over your finances. Transforming your money mindset is essential to achieving financial success. Start today, and watch your financial outlook improve as you cultivate positive thoughts about money.

Sources: 1 & 2

Read More...

Six Habits Of Financially Successful Individuals

While you are busy managing your own wealth, consider how you can develop these 6 habits of financially successful people.

#1: FASCINATION OVER BOOKS

According to Mr. Tom Corley, the author of “Rich Habits: The Daily Success Habits of Wealthy Individuals”, self-made millionaires have a shared passion for reading. His study found that about 85% of the participants indulged on two or more books in a month. These said books involve topics of improvement such as career, health, and leadership.

I cannot deny that life is an endless journey of discoveries. There will always be new theories to motivate employees and new strategies to invest your wealth. This is why you must read beyond what is expected of you. Set yourself apart from the competition!

#2: GONE IS THE BLAMING GAME

No matter how relatively robust Singapore’s economy is (i.e., compared to other countries across the globe), it cannot please everyone. Others have a habit of blaming the economy for their ill financial situation. Successful individuals and eventual millionaires refrain from behaving as such.

Reality check! It is time to take the full responsibility for your finances. Doing so will make you more accountable for your future spending.

#3: SACRIFICE COMES FIRST

The key to success is knowing that there is no easy way up! As you are only starting your career, you must employ sacrifices such as downsizing your flat or selling your car. Successful individuals transform every cent they can save into productive matters such as investing on quality education.

Accept that your way of life is something that you have to sacrifice first. For instance, the notable Warren Buffett drives his car until it completely wears out.

#4: THINKING OF THE LONG-HAUL

Overnight success rarely happens. You will probably agree that financial success requires strategic planning and careful outlook toward the future. Many successful individuals show concern about what their finances will be like in the next 5 to 10 years. They take conscious steps to reach their long-term goals.

Having this habit of setting long-term goals encourages the exploration of options to increase one’s wealth. It highlights the importance of having substantial savings.

#5: GOOD THINGS BLOOMING YOUR WAY

Have you heard of the quote: “Good things come to those who wait”? Well, financially successful individuals have their own twist! They essentially believe that good things will come as long as they hustle. They do not just sit around to wait for incredible blessings! They play an active role in their accomplishments.

Continue to expand your financial literacy. And at the same time, seek for new ways to boost your income. This will help you to efficiently tackle your financial goals.

Image Credits: pixabay.com

Image Credits: pixabay.com

Ohhhh! You came here to read 6 habits. Sorry about that! Sometimes, you must give yourself the privilege to commit mistakes. It is possible to be right all the time (successful people know this).

Sources: 1,  2, & 3

Read More...

Horrible Financial Habits To Drop This Year

As preconceived habits are harder to break, it takes patience and dedication to break these financial habits:

THE HABIT THAT I DO NOT TOLERATE

If someone asked me to identify a single financial habit that I am irked by the most, I will immediately answer “disorganization”. I appreciate when things are labeled and stacked in order. This is why I make it a habit to file my receipts, keep my cards in one place, and schedule my payments. Is it just me or does your mind work more efficiently in the sight of a clean desk?

Well, tidiness works to my advantage as it helps me to avoid unnecessary expenses. Money spent on interest charges, late fees, unused memberships, and unwanted subscriptions can pile up! Can you guess what binds these expenses together? Disorganization is the answer.

Place conscious effort towards creating a system that will keep your finances in order. Do not fall behind your billing statements, nor shall you let your important documents stack up.

THE HABIT THAT BLOCKS A GOOD DEAL

Say you are a habitué of Money Digest’s Facebook Page. You frequently stumble upon good deals in various categories. As a business owner, you are immensely attracted with the services of a supplier that offers inexpensive prices online. Do not cancel on your current supplier in a snap! Instead, call to negotiate. Carefully analyze the situation and make logical points about the competitors.

If your timing and approach is proper then, your current supplier may quickly match the competitor’s offer. Do not be afraid to negotiate!

THE HABIT THAT MANY POSSESS

Many Singaporeans do not keep track of their spending as they deem it to be time-consuming or unnecessary. However, making money management an habitual regimen is essential for every working adult.

You do not need to adapt an extravagant lifestyle or earn millions to start a financial plan. Simply keep track of your daily spending and examine it each month. Then, accurately plan to meet both your long-term and short-term financial goals.

THE HABIT THAT LIMITS YOU

There is a reason why entertainment websites such as 9GAG and Reddit flourish worldwide. These were especially created for people who have a habit of procrastination. These people push off tasks and decisions as they intend to accomplish it in “later” parts of the day. Have you caught this habit yourself? It is time to break the cycle as you welcome a new year!

Reach your fullest potentials by researching your options on insurance, savings, and investments. Befriend Father Time as he can bestow you the gift of compound interest.

THE HABIT THAT CAN BREAK ONE’S SMILE

Some religious leaders advocated against the idea that more money can bring happiness. Money can immediately bring joy, but only to an extent. Researchers in Princeton released a study in 2010 showing that happiness increases as the income increases until US$75,000. After this point, it plateaus.

Purchasing or owning more items can increase your happiness in the short run. In contrast, spending your money on others can generate more happiness than splurging for yourself. Consider holding a fund raiser or donating your old clothes. A little act of kindness can go a long way!

THE HABIT THAT HARRY POTTER CAN CONQUER

The J.K. Rowling’s fictional book series that blew the world by storm included the dark creatures called the “Dementors“. The lead character named Harry Potter had to vanquish these creatures, which feed upon human happiness. They suck the individuals’ souls out of their bodies. Rowling modeled these creatures to the immensely negative people in her life.

Image Credits: iKobe! via Flickr Creative Commons

Image Credits: iKobe! via Flickr Creative Commons

Are you a Dementor? Do you create a bubble of negativity above your head? Do you believe that you are constantly overworked and underpaid? Is it your habit to complain about your paycheck? Consider stopping the vicious cycle of negativity. Instead, solve your problems by employing strategies such as negotiating a pay raise or going on a well-deserved vacation.

This year, stop ranting and start doing!

Sources: 1, 2, & 3

Read More...

Starting A New Family? Here’s 4 Tips

It’s not easy starting a new family. While you might be busy dreaming about the warm and fuzzy moments you’re going to have in the future with your spouse and your children, there are some pressing financial issues you would need to face right now. How are you going to use your money wisely on a daily basis? How are you going to safeguard your family future? Don’t fret, we’ve brought to you a few tips, so you can better manage your family finances

Keep Your New Expenses In Mind

Maybe you’ve thought of getting that new TV you’ve been eyeing for a while. Maybe you’ve saved just the amount of money needed to get that massage chair that’s always been at the back of your head. Well, did you take into account all the new expenses you’re going to have to pay for, now that you’re starting a family?

You’re no longer just earning for two, you’re going to have to provide for three, or more (if you struck the twins or triplets lottery). There’s plenty of child related expenses you’re going to have to take note of, such as baby food, diapers and immunisations. It’s best if you lay out all the expenses you would need to care for your baby, so you know for sure what you’re getting into, and to allow you to better budget for the future.

Set Up A Savings Plan

If you hadn’t already done so, you should set up a savings plan so you can better provide for your child’s future. Savings plans are more easily set up compared to investments or bonds. The basic idea is a simple automatic, monthly deduction of funds which will go into a special account, which can only be accessed once your child reaches a certain age. It might be hard to consistently set aside money on your accord, which is why a savings plan would be great as you don’t even have to think about it once you set it up. The “pain” of having less income per month isn’t felt so strongly this way.

Get Life Insurance and Medical Insurance

You always need to be prepared for the unexpected. Insurance acts as a safety net, so you and your family can be protected should anything happen to any one of you. Medical insurance is important as there are many medical issues which your child or any family might face which would require a hefty bill. The presence of a medical insurance plan would help you cover these expenses should the need arise.

Although many modern families are dual-income families, this does not mean the early demise of you or your spouse would not result in a heavy financial burden on your family. Life insurance helps your family deal with the financial needs that would be definitely be harder to attend to with the absence of you or your spouse.

Teach Your Child Good Financial Habits

Financial habits are ingrained from a young age, so make sure your child adopts the right habits that will put him in good stead for a financially stable future. Managing family finances is a team effort which involves every single member of the family, including your children. Little things such as not buying toys they don’t need, turning off the lights, and putting aside a small sum of money each day help your family make better use of your finances.

Read More...