Our Archive of Articles About Financial Literacy and Other Topics
Developing a Winning Financial Attitude
February 4, 2008, 1:39 pm
One's attitude toward money is a key component of overall financial well-being.
Believe it or not, for most people, their financial success in terms of paying their bills, accumulating wealth and staying out of debt has very little to do with how much money they earn. Sure, your salary is an important factor in your financial success, but it’s only one of several key factors, and it is far from the most important one.
For example, have you ever known someone who always seems to be doing well financially, even though he or she makes just an average wage? This person likely always has decent clothes and drives a car that’s in good shape. They take a nice vacation once a year and are active in investments.
At the same time, other people who make the same salary and have approximately the same budget demands are always having trouble paying bills and seem to be continuously complaining about their financial status?
You’re not imagining things. There are some people in the world who have simply developed a “winning attitude” when it comes to money. These people know what’s important and they stick to their values. As a result, they rarely lack for money when basic needs, such as a car repair or new business suit, arise.
The key to having a winning financial attitude is to change your way of thinking so that you view your money as a resource. Too often, people feel as though they are controlled by their financial state. The longer they feel controlled by it, the more they feel as though they are victims of it. In other words, they get used to never having enough money on hand to cover basic needs, then they blame their misery on their lack of money. However, if you look closely at their spending habits, they waste hundreds of dollars every week by running up credit card debts, buying things they don't need, and overextending themselves.
To financial winners, money is a resource to be used carefully and with a lot of thought put into every purchasing decision. They also have a highly developed sense of planning when it comes to money in that they have long- and short-term financial goals they want to accomplish. The winners don’t give in to their spending impulses. They ask themselves, why do I want to make this purchase? Will I be better off for it down the road? How does it fit into my plan?
How do you become a financial winner? The first step is to understand that the way you’ve been handling your money is not the best way. A good exercise is to carry a small notebook and record every single purchase you make for three weeks. And that means every single purchase, no matter how small. Even if you stop at a convenience store and spend only two dollars, write it down. After three weeks, add up what you spent on unnecessary items. Take a look at your food expenses, including convenience stores and fast food restaurants. Chances are you’ll be shocked at how much money you waste.
If nothing else, you should develop an understanding that purchasing decisions, even small ones, are important. It should also point out a few areas where you can save some money. More important, however, it will demonstrate the consequences of not having a plan for your money. And that’s the real key to financial success. To become a financial winner, develop a set of financial objectives and then formulate a plan to achieve your goals. Eventually, thinking like a winner will become a habit that you’ll keep for a lifetime.
About Springboard Nonprofit Consumer Credit Management
Springboard is a nonprofit credit education and financial counseling organization founded in 1974. The agency offers personal financial education and assistance with money, credit and debt management through confidential counseling. Springboard is accredited by the Council on Accreditation, signifying high standards for agency governance, fiscal integrity, counselor certification and service delivery policies. The agency provides pre-bankruptcy counseling and debtor education as mandated by the bankruptcy reform law. Springboard is a HUD approved housing counseling agency and a member of the National Foundation for Credit Counseling, a national organization of nonprofit credit counseling agencies. The agency has several locations in California and offers face-to-face and nationwide phone counseling services. For more information on Springboard, call 1-800 WISE PLAN (1-800-947-3752) ext. 7750 or visit their web site at www.credit.org.
