Is your attitude to money affecting your finances?
‘I can’t afford it’, ‘I’m skint’ and ‘I wish I had more money’ are all common phrases most people use on a daily basis, but did you know that these could be seriously affecting your finances? When it comes to good financial management, a switch in your attitude could hold the key. Have you ever known two people who earn the same, but one is always skint? This isn’t down to earnings; it is all about attitude and these are ways you can change your attitude to improve your finances.
Be money positive
Instead of thinking about what money you don’t have, make good use of what you do have and stretch it as far as possible. We all experience times when we have a shortfall of cash, but if you change your negative attitudes towards your financial situation, you will soon find you have more money available to you. When you constantly have the frame of mind of not having enough, you never will have – so don’t think about being skint, think about all the other positive things in your life and appreciate every penny you do have.
Mindless spending is often the root to being financially poor and if you become a bit more aware of what you spend, you will soon have more money than ever before. For example, do you really need to spend money on a coffee every morning? Could you not wait until you get to the office instead? It may not seem like much, but this kind of frivolous spending can really affect your financial situation. Extra spending on things you don’t really need can all add up over the course of a year. Spending £3 a day on your favourite latte, amounts to almost £800 over a year! I think we would all agree that there are better ways to spend your cash!
If you have a hectic social life, this could be seriously affecting your finances, but some simple changes can help. It doesn’t mean you need to stop going out altogether, but instead, find new, cost-free ways to spend your spare time. Could you perhaps swap your coffee dates for a walk instead? Or instead of going out for a meal, why not invite your friends round for something you’ve cooked instead? Small changes in your attitude to social spending can have a positive effect on your finances.
It may seem boring, but if you start to track your expenditure and change your attitude to what you spend your money on, you could find some easy ways to save money. Try doing this for a month; you will probably be surprised by how much you are spending on things you don’t need. If you have a monthly gym subscription for example, but you’ve only been twice in the last year, it is a waste of your money, so it’s a good idea to cancel it and find an alternative way to exercise. This doesn’t mean you can’t have nice things, but wait until you can afford it and you will appreciate it all the more.
Pay off debt
If you are up to your eyes in debt, this will be affecting your attitude towards money and will be preventing you from reaching your true earning potential. It is easy to say pay off debt, if you don’t have a lot of spare money, but rather than tearing up those unpaid bills and burying your head under the sand, make an arrangement with your lender. Most lenders will accept even a small amount, so if it is as little as £5 per week, start to make payments to your debt. When you arrive home to a load of bills every day, it can be seriously damaging for your well-being, so make arrangements as soon as you can. Set up a direct debit to pay off your debt, forget about it and focus on bringing in money.
Change your social circle
If you are surrounding yourself with people who have a negative attitude towards money, this could be affecting you too, without even realising it. We all know someone who is always complaining about having no money and guess what? They probably always will, as they have this negative mindset towards money. It is much more beneficial to surround yourself with people who have a positive attitude towards money – and life in general! Choose your social circle wisely.