The Mindset of Saving Money

by Ryan Yates

Are you wrestling with financial decisions?

Saving money and making wise financial decisions doesn’t just magically happen – it takes a focused mindset and a persevering attitude. Realistic prioritization of your needs versus your wants can be the difference between a growing savings account and an empty checking account.

The question is: Do you live in the real world?

Arming the Guard Tower

Everyone out there wants you to spend your money. They want you to buy their product, their service, and their name. And they pay billions in advertising dollars each year to convince you to do so.

If you don’t have the right attitude or approach when it comes to spending money, then you could be one of the many people who let their money fly out of their pocket without really thinking about the purchase. If you string too much of this behavior together, what you’re left with is an empty wallet and a bleak future.

Think of it like this – your bank account is a prison and every dollar is a prisoner. A prison’s job is to contain the prisoners, and your job should be to keep as much money as you possibly can. When you have a mindset of saving money, it’s like arming the guards of the prison so they can be more effective at preventing breakouts.

The Right Frame of Mind

A person with the right financial mindset can realistically and accurately decide between needs and wants. They know that saving money is good math and they can avoid ‘wants’ and focus on ‘needs’.

This person can also distinguish between percentage dollars and real dollars. Remember, sales aren’t always a good thing if they require a few cracks in the budget to make it happen. A $40 shirt is still $40 – even if the $40 price was the discounted price.

The right financial mindset plans ahead for upcoming purchases and knows the difference between a fixed hard budget item and a flexible soft budget item.

And lastly, a person who has the correct financial frame of mind knows that it takes hard work to save money. Sometimes the hard work looks like avoiding a certain store at the mall. Other times hard work comes in the form of crunching numbers in the budget. Either way, saving money will take perseverance. You know what perseverance is, right? It’s a steady and persistent course of action, even in the face of difficulty and discouragement.

Your Life Isn’t Miserable

I am very thankful for my advertising classes that I took during college. The information about the advertising industry that I learned in these classes opened my eyes to the reckless spending behavior the they attempt to push on society.

Through advertising, a company’s main purpose is to make you feel miserable and worthless if you don’t have or use their product. Why else would a couple living paycheck to paycheck be leasing two brand new cars every few years? Because the advertisers convince us we need them, that’s why.

One step in changing your mindset to one of savings is to realize that your life is pretty good; even if you don’t own the most expensive version of everything out there. Stop seeking life-fulfilling pleasure through your material possessions and begin to focus your energy on long-term financial goals.

Remember, if you set your mind to it . . . you can accomplish anything.

Photo By Available_Light

Leave a Comment

{ 1 trackback }

Previous post:

Next post: