Overview
“A good financial plan is a roadmap that shows us exactly how the choices we make today will affect our future.”
The quote by Alexa Von Tobel, Managing Partner of a venture capital firm in New York, encapsulates the true essence of a positive money mindset to secure and shape your financial future. It clearly narrates the concept of making informed financial decisions in the present. You simply have to visualize your future in the present to connect well with your financial needs and aspirations in the long run.
What is a money mindset, and why is it important? Imagine a scenario where you visit a bakery store with $5 in your wallet. Oops, the cake you wish to buy is $6. What would be your next step? Would you keep the pending amount due as a balance? Would you swipe your credit card for the entire amount and keep the cash amount with you? Or would you look for other options that you could buy for $5? Your decision here defines your money mindset!
A money mindset is nothing but your attitude and relationship with money that drives your financial decisions, thereby significantly impacting your financial stability. Go back to the scenario once again. The difference is only $1, but if it continues every month, you would be spending an extra $1 per month or $12 per year. Even a small amount adds up with some additions and multiplications. However, it would help if you had the wisdom to decide whether spending that extra $1 is worth it. This understanding and psychology of money is a positive money mindset that keeps your focus on your financial goals and financial fitness.
With a positive attitude, you can walk confidently into your financial future. Here are some tips to help you develop a positive money mindset:
Start Early
When you start saving and investing at a young age, you give your money enough time and the ability to generate wealth for your retirement or any other financial goals. Go back to the previous scenario of spending an extra $1 monthly. If you save this amount every month from the early age of 20, it will be an investment of $480 by the time you retire. However, even with such small savings, you could generate a good amount of savings depending on your choice of investment and your decision at the young age of 20. This does make a difference. Don’t you agree?
Pursue Hard and Embrace
To earn money, you must first work hard and then let your money work hard by investing it the smart way. There are many ways to invest, but before that, you must learn about the power and psychology of finances. You can then stay calm in your cocoon while your money works to secure your financial future. Even $1 saved daily turns to $365 at the year-end. With a thoughtful plan, this year-on-year savings and investment can take you on an easy pathway to financial fitness.
Prioritize Your Finances
It is important to prioritize your finances. You can create a budget for yourself or ignore getting into small, mindless purchases. This can help you position yourself to reach more significant potential gains, enabling you to improve your financial future. Within the pages of the book “All Your Worth: The Ultimate Lifetime Money Plan” by American politician Elizabeth Ann Warren, you would find the most popular “50/20/30 budget rule”. The rule is to spend 50% of your after-tax income on your needs, 30% on your desires, and 20% on your savings. Apply it and see the difference as you learn to prioritize your finances.
Control and Empower
You should learn to control your financial situation by transforming your financial behaviour intelligently and fruitfully. Once you gain that control, you can empower your money and give it the freedom to multiply while taking ownership of a secure financial future. If you find it difficult to control your finances, if there are limiting beliefs blocking your way to financial stability, you need not worry. Learn to overcome and step ahead.
Improve Your Bottom Line with Kaptize
Wouldn’t you want to learn about personal finances? Wouldn’t you want to reach your financial goals? Yes, indeed! Kaptize is there to help you transform your life through a financial literacy initiative, Cobloc Finance, that teaches you to budget, save, and invest. A few simple lessons and an appropriate investment strategy can help you create and shape your financial future exactly how you aspire.
Contact us to learn more.
Comments are closed