How am I establishing priorities?
Some people do exceptionally well when it comes to money, many others struggle to make ends meet. There is a myriad of reasons why a person could be having difficulties in their financial situation and every case is complex on its own, but there are some cases that might seem wildly illogical. It's very common to hear and see things like that neighbor who went to Europe for vacation but he is swamped in debt, or that coworker who can't start his day without his daily Starbucks fix but last week he borrowed money from you for groceries. Fortunately, there is an explanation for this, because there is a common element: Priorities. Conceived from the household, they can determine whether finances are going to be good or bad. Of course, to be able to establish priorities we need to be aware of our thought process regarding finances.
How am I establishing priorities?
Give some thought to this question. What's money for? Where does it come from? Where does it go?
When we put ourselves to think about it, we might catch ourselves thinking in very strange ways that determine our priorities before we actually can do it consciously. Let's review some of these:
"Easy come easy go". This is a very dangerous way to think about money because dismissal on your own financial situation means you probably don't have the tools to establish priorities and make sound decisions. This has an easy fix: invest in learning about money, it's one of the best things you can do for yourself.
"Money is the root of all evil". More money more problems, right? Anyone could argue that there's some truth to this, but this mindset sets you to prioritize avoiding money like it's the plague without you knowing it. People take a long time to realize that the reason their families are in poor standing is because of their negative perception of money overall. Bad things can happen when you let money control you, but the reality is money is a resource for us to have control over.
"Money is for paying the bills and not much else". This can also be a consequence of the former thought, but the way it affects our priorities is different. It's good to think about covering our bills and debts, but this should be no reason to focus solely on that - it is far more productive to allow ourselves to dream a little and establish goals in aspects that might require financial planning than perceiving life as the eternal rat race.
"Money shows how much I'm worth". It is too easy to associate net worth with self-worth, especially in a society that links high-value items with high status and wellbeing. But, as harsh as it may sound, buying the latest car or the hottest shoes might not be the best thing for your family. And it does get pointless when we see that the richest people on Earth are not really ostentatious in the things they wear or use.
"Money is for enjoying life at its fullest!" Indeed, money can facilitate some ways to obtain pleasure and entertainment, but focusing too much on this thought can mess up our financial situation. When pleasure becomes the main goal in life, we tend to lose awareness of what we have and we could end up quicky spending everything due to our pleasure-seeking behavior.
To close on the subject, remind yourself the following: it is important to develop a healthy relationship with money and finances, for your own wellbeing and your family's.
How am I establishing priorities?
Give some thought to this question. What's money for? Where does it come from? Where does it go?
When we put ourselves to think about it, we might catch ourselves thinking in very strange ways that determine our priorities before we actually can do it consciously. Let's review some of these:
"Easy come easy go". This is a very dangerous way to think about money because dismissal on your own financial situation means you probably don't have the tools to establish priorities and make sound decisions. This has an easy fix: invest in learning about money, it's one of the best things you can do for yourself.
"Money is the root of all evil". More money more problems, right? Anyone could argue that there's some truth to this, but this mindset sets you to prioritize avoiding money like it's the plague without you knowing it. People take a long time to realize that the reason their families are in poor standing is because of their negative perception of money overall. Bad things can happen when you let money control you, but the reality is money is a resource for us to have control over.
"Money is for paying the bills and not much else". This can also be a consequence of the former thought, but the way it affects our priorities is different. It's good to think about covering our bills and debts, but this should be no reason to focus solely on that - it is far more productive to allow ourselves to dream a little and establish goals in aspects that might require financial planning than perceiving life as the eternal rat race.
"Money shows how much I'm worth". It is too easy to associate net worth with self-worth, especially in a society that links high-value items with high status and wellbeing. But, as harsh as it may sound, buying the latest car or the hottest shoes might not be the best thing for your family. And it does get pointless when we see that the richest people on Earth are not really ostentatious in the things they wear or use.
"Money is for enjoying life at its fullest!" Indeed, money can facilitate some ways to obtain pleasure and entertainment, but focusing too much on this thought can mess up our financial situation. When pleasure becomes the main goal in life, we tend to lose awareness of what we have and we could end up quicky spending everything due to our pleasure-seeking behavior.
To close on the subject, remind yourself the following: it is important to develop a healthy relationship with money and finances, for your own wellbeing and your family's.
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