Imagine you can lead a life you opt to without worrying about money. You may plan to travel for a month with your family without the fear of losing your job. You may want to take an early retirement. You would like to take a vacation for a year without the financial concern. The pre-requisite of becoming financially comfortable is to have a right mentality and attitude.
People complain about their long working hour, pushy boss or low pay. Are they forced to work? There can be choices. Most people work because of fear. They fear for losing a stable income. They fear for losing a sense of security. Having a stable income can eliminate the fear. And then because of greed and desire, after working hard like an office grind, we spend money again. People end up engaging in the process of working, spending, bill settlement, working and spending. This process comes with complaints and unpleasant feelings because of the work stress. They work to avoid fear instead of seeking for pleasure. Is that the life they want?
What are your goals in life?
When people earn more, they tend to spend more. If you have got promotion and salary increment today, you may think of buying a new car or a more gorgeous house. You may join a very expensive membership because of more money to spend. But what are your goals in life? What do you want on earth? According to Warren Buffett “I find the standard of living does not go up in proportion with the cost of living. The trick in life is to do things that are fun all the time.” Think of what you enjoy doing actually instead of spending and spending. Think of what you would like to be, own and achieve. For instance, earning a million is your goal. But what’s next when you are really earning a million? If you have not any goal in life, when you are earning a million, you may be just feeling the same – not enough but trying to seek for another million. A rich life is not only about money which is just the tool to make your life rich.
Be caution of every financial obligation
Make financial obligations with a proper scale to your income. In the last financial turmoil, many homeowners lost home because of going too far on financial obligations by engaging in a mortgage which is not in a proper scale to their income. Every financial obligation can have impact on your work as well as life. They may limit your choices of life. You have no choice but to work or stay in your high-income job which you do not enjoy just because of the home mortgage. So be caution of every financial obligation.
Make money work for you
At school, we are taught to work for money but there is no lesson on making money work for us. Set up plans to make money work for you and one day you can be financially comfortable without concern over money again. You may save money to buy a flat to earn you rental income which constitutes your passive income. You may invest your money in shares and earn the dividends. Set up a profitable business which you are interested in. There are plenty of choices to make money work for you. The most important mentality is the determination and go ahead in your plans every day.
Published in: Personal Finance