We all want to save money for our future. But the first step to saving is changing your mind-set.
Your money mind-set is a collection of beliefs and attitudes about money that are unique to you. These beliefs inform your decisions about how to save, invest, and manage your money. Your money mind-set influences how you feel about debt, how you view people who earn more or less money than you, how easily you can spend, and more.
When it comes to saving money, many of us have a You Only Live Once (YOLO) mentality, splurging money now and again to enjoy temporary luxuries and then regretting it later. We believe that we are earning money to enjoy it and that we will save later. This mentality must change.
The priority that you give to money in your life reflects on your unique money mind-set. Your unique money mind-set is reflected in the priority you place on money in your life. According to a Money Advice Service study, our money habits and mentality are formed as early as when we are seven. It is based on how our parents, family, or elders treat money.
When making money becomes our top priority in life, we lose sight of the small pleasures, jeopardizing our relationships as well as our physical, mental, and emotional well-being. Instead, having a balanced attitude toward everything, including money, relationships, friendships, and life goals. Finding the right balance between wants and needs, spending, and splurging is critical to ensuring that you save money while also meeting your needs to live a comfortable and happy life.
Saving money for an emergency fund or investing in retirement plans should never be viewed as a financial burden. Saving is not a commitment; it is an act of self-accountability, ensuring a safe umbrella for our loved ones. When we decide to take that responsibility, we choose to change our lives. At a point in the future, those savings may prove to be our lifesavers.
Saving is a skill that takes time to master. More than the money that goes into your bank, it is the attitude that matters. The saving mentality is built gradually over time. You can start building it with a simple step. The next time you make a financial decision, consider whether it is truly worthwhile to spend money. That introspection will help you strike a balance between your need to save money and your desire to spend.
To summarize, saving money does not have to mean sacrificing happiness. In some ways, saving is the act of ensuring that your life is happy and fruitful in the future. It helps you achieve your goals. You don’t have to go out of your way to do anything that makes you unhappy in order to save money. It’s fine to spend money on expensive products once in a while as long as you keep track of your expenses.
Finally, the slight discomfort you may be experiencing now will be offset by the many benefits you will receive in the future. You can live life to the fullest now and in the future if you adopt a positive attitude toward saving money today. That is the Psychology of Saving.