Why Your Money Mindset Matters

Let’s talk about money in a way that’s easy to understand. We were taught to be in the middle class. That means we were told to work for someone, follow rules, and not take risks. Jobs were seen as safe, but running our own business was considered risky. We were literally programmed to stay in that status quo of life we often call the “Rat Race.”

Lifestyle Creep: Breaking the Cycle

Now, there’s a related concept called “lifestyle creep.” We as humans always want to improve our lives and have more freedom. We’re taught to do that by taking on more responsibilities at work to get promotions and raises. And then once we get that promotion, we start spending more on things that we think matter to us, but really don’t, and then we need to work harder to get another promotion and to afford what we think we want. It’s a vicious cycle that leaves us feeling empty and like we never have enough. Parkinson’s law explains this simply, as it states that “The demand on a resource tends to expand to match the supply of the resource.  This is something we all have to be mindful of if we want financial freedom! Here’s the reality about breaking the cycle of Lifestyle Creep and overcoming Parkinson’s Law.. We first have to acknowledge that this beautiful world was created with an abundance of resources. There is plenty for all to go around and we aren’t really in competition with each other. Then, we need to decide what we really want in life. We need to have a clear vision for what we want, then go after it. The goal has to be big enough and exciting enough that it pulls us through the hard times. 

Getting Organized: Smarter Income Strategies

Lastly, we need a system for managing our money that is simple. I recommend you have a separate account from your checking account to hold all of your income your spend it.  I call it a Clearing Account. This is a savings account at your bank that ALL your income goes through first. It is a temporary holding place for ALL your income. Once your income goes to that account you only move enough money out of the account to your checking account to pay your bills and lifestyle. It’s like giving yourself a salary from your salary.  Everything else stays in the Clearing Account and is being automatically saved for the wealth building things you want to do, like buy an investment property or start/expand a business. And whenever my clients do this, they often say things like, “where did all this money come from in my Clearing Account?”  or “I’ve never had so much in savings before”. Its simple, you simply removed the temptation to spend everything by holding it in a separate account from your bill pay checking account, so you didn’t spend it!  Its like magic!! 

Empowerment through Savings: Shifting Perspectives

If your job doesn’t make you happy, you might want to change it. Maybe find a better company or try something new. The trick is to save some money instead of spending it all. Make a plan to save money so you can say no to things you don’t like and do things you really want to do.

A Story of Change: From Stagnation to Possibility

Let me share a story about a person I met recently. He worked as a technician in the HVAC industry for over 25 years but felt stuck. His body hurt, he didn’t have much money saved, and he was in debt, so he couldn’t retire. I knew from experience that others in that industry were making much more than him, so I suggested looking at other jobs or training, but he didn’t want to. He had many reasons why it wasn’t worth it for him, such as the community college not offering enough, or other HVAC companies in the area weren’t willing to pay more. This man’s mindset was closed and fearful.  In order for his life to change, his thinking would have to change so that new possibilities could come into his life. He was angry at life. And I know that happens, but we can’t let it happen for too long. We have to look beyond our current circumstances and realize that we have power to do what we want to do. Often, all we need to do is start to think differently to find better solutions. Envision what you want, then become the person worthy of receiving it.

Work Harder on Yourself: Rule for Success

One of my great mentors taught me that you should, “Work harder on yourself than you do on your job.” This means figuring out what you’re good at, what you care about, and becoming a better person. When you focus on becoming the best version of yourself, you become the type of person that’s worthy of the abundance that’s available, and the opportunities to receive the financial success you need to accomplish your dreams.

Choosing a Wealthy Mindset: Beyond the Status Quo

You don’t have to stay in the middle class or have a middle class mindset if you don’t want to. You can choose to live a life that you love, which may include living a life of great wealth. It’s not just about having a lot of money, but instead about using money to get more of the things you desire in the 4 key areas of life: 1) Your Physical Health 2) Your Social Life 3) Your Intelligence and Knowledge 4) Your Spiritual Life (aka more kindness and generosity)  The principles taught in this article are part of Wade’s Financial Freedom Academy group coaching course, which can teach you ways to save and make good choices, no matter how much money you have.