It’s All in the Mindset

So… where do we start and how can we mend our ailing financial habits?

First, go over, in our minds, and then write down what had prompted us to spend in the past. Was it such a deeply entrenched set of spending values that was not only so unknowingly programmed into us, that we knew of no other choices? Was that programming the cause of our self entitlement mindset; where we wanted to buy what millions of others were buying, to fit in, to keep up with the Jones’s, or did we develop such an angry defensive attitude, so as to justify our overspending?

Think about this… could it be that America’s wealth was based on debt? American’s were spending money they did not have. They were borrowing money to cover expenses, going on vacations without the cash needed to pay for them. They went shopping until they dropped, using credit cards until they were maxed out, only to get a new one and start the same scenario over again, while paying the minimum payments on their credit card accounts.

When they bought cars, they bought just slightly (to rationalize) over what they could afford, accepting interest rates without a thought in the world. Likewise, they bought homes slightly over what could afford, all the while, thinking they would get raises to compensate for future tax and insurance increases. Of course, they said, “I deserve this, I want this”. Up until the time credit card companies programmed us, when we needed a replacement vehicle, we saved for it. When we needed a new stove or anything else, we saved for it. We lived within our means.

So… the first thing we need to do, in order to put our spending back on track, is to truthfully acknowledge reasons we spent in the past. Once we decide to face it head on (keep thinking that the old way may have made us feel important), we must accept, in reality, our overspending caused stress, interfered with sleep and maybe caused such debt that we’d live our lives out just repaying what we owe! It took a disaster to give us a wakeup call. We now see our past spending habits brought us nothing but grief.

Experts tell us we need a drastic change in our spending, that our economy will never be same, but they don’t tell us what to do to change. A reader of A Life Preserver in a Sea of Debt said it is the change we need.

But when people hear the word change, they immediately put up a defense barrier, thinking it is a negative approach and therefore have no desire to change. So instead of thinking negatively, think of change as having a positive romance with money. Have fun in a new revelation of spending choices. Make a game out of it. High five ourselves every time we save and every time we don’t spend where we did before. This is the positive attitude we need to break away from past spending habits, to release the magnet that had such a distinct hold on our spending.

Yes… It’s all in the mindset. This is where we start. Once we make it a habit, it becomes second nature. It follows us throughout our lives. We have permanently left overspending in the dust and have no desire to return to our old habits.

Next week: More ways to start, plus…