A Note to Readers
I want to assure my readers that I want to help them create a better mindset for money so they can build an accumulated benefit to their lives. That doesn’t mean that I want you to stop enjoying life. I just want you to get better at valuing what will protect your future financial plans.
We must make good decisions on how we spend our income to ensure that we can pay ourselves first by saving a part of every paycheck. Are you in the habit of paying yourself first or letting everyone else draw your money down first? After all, who is more important when it comes to spending your money? Good decisions, good results.
So, let’s look at how we might define needs and wants.
Needs
Needs are basic. You need shelter from the elements, including heat for winter. You need food to eat and water to drink. You need a job to earn money to cover your needs. And you need a way to get to your job and back home.
Needs are variable and conceptual. Your concept of what you need will be much different than mine based on your income and location. My hope is that you value your needs based on your current income with changes in mind as your income capacity grows.
Are you willing to work to provide for your needs?
How Needs Were Met with Very Little
Houses were once very basic like a two-room cabin built from hewn logs. The bathroom was a small building with a seat and a hole in the ground. Food came from hunting wild game, raising cattle, and growing a garden. Water came from a well or a stream. Heat came from a wood-burning stove or fireplace.
A job might have been on a farm with grain or meat for pay. Your transportation might have been a horse or, as my grandma used to say, “Shanks ponies” (Walking).
That was very basic. However, there was a lot of work involved.
Today, most of us are willing to exchange the money we get from our jobs to pay for those basic needs, including transportation.
Wants
Consider this, anything other than basic needs is a “want”.
You want to decorate your apartment, get a comfortable bed and other furniture, drive a nice car, and eat out!
All those things cost money. And the more you want, the more money it will take to get those wants.
Image or Satisfaction?
Consider this, are you buying things to look good or successful or better than others?
What are your desires for appearances sake?
I know some things appeal to us for a variety of reasons. However, I want you to be a little critical of your desires.
That is, I would like you to filter those decisions by asking yourself:
- Do I need that now? (To satisfy a want)
- Can I afford that now?
- Is this on sale at an affordable price?
- (The hard one) Do I really want or need this?
Having Money Is Great!
Being able to earn a decent income is a great feeling. The main reason for that is that you can satisfy a lot of needs! And, as you grow in knowledge and other skills, your efforts increase your value in the marketplace. You will gain confidence and find more opportunities to generate income.
There are so many shiny things in the world. However, accumulating them should take time. If you hurry that aspect of your financial life, you will find yourself falling prey to credit card advertising that tells you not to wait.
A better mindset for money says savings are better than debt. So, work on your financial freedom by building savings unless you like being a slave to your lender.
Learning to build a better mindset for money involves gaining control of your spending decisions.
Spending Wisdom
I always want to promote your saving for your future and for future opportunities. Growing assets from investments that can eventually earn enough returns to replace your income is a worthy and possible goal. I will discuss the process to make this happen in other blog posts.
However, I want to encourage you not to forget the unfortunate. Not everyone is doing as well as you (will be). Stay positive.
There are organizations that are resources for meeting basic needs for the unfortunate. They need your help.
Imagine the good you could do if you had the resources to meet all your needs plus a surplus. You may be scratching your head about now wondering how a depressed and down and out person like you could possibly get to where I suggest. The answer lies in a quote that Jim Rohn often quoted from his mentor, Mr. Schoaf, “Nothing will change until you change!” If you blame all your problems on everyone and everything else, the truth will come out that you and your mindset are the problem.
You have the capacity if you allow yourself to grow into that person. You could become financially independent, where a job is optional. Sounds like a great goal to me!
All I ask is that you allow yourself to listen to the possibility of your life being better. Do the reading. Listen to those who have had success. Maybe you will not be doing the same things because your interests lie elsewhere. However, you can change. You can grow into the person that can accomplish more than you ever dreamed you could. You must believe, despite the situation you find yourself in. Work on it. Study what can help you be more valuable to employers and to yourself. Then, when you are successful, remember those who are where you once were.
There is satisfaction in helping others. We all must learn to improve ourselves to improve our situation. Maybe you will be able to help someone with that process, as well. And I believe that God will bless you for doing so!