Good morning everyone, I wanted to talk about an underlying issue when it comes to creating financial stability. At least however you define it. Everyone’s situation is different. Regardless of the budgeting system you find that resonates with you, it needs to help create a healthy relationship. Having bad habits will make any budget app or system useless. If you overspend, think money is bad, or put your nose up to those with money, you are creating a path for failure. I remember during the Covid days listening to a health and fitness podcast. A woman called in talking about her amazing weight loss journey. She asked the host what she could do to maintain it. The host asks her, ‘what’s your relationship with food?’ It really grabbed me and it made me think of how this aligns perfectly with your finances. I have made my fair share of mistakes and bad decisions. Once I developed a healthy relationship with money, things turned around quickly.
I’d also add to stop thinking that people without money are bad
Lin said:
I’d also add to stop thinking that people without money are bad
80% of US millionaires are self-made. Working ‘normal’ jobs. They prioritized saving and investing, drove modest cars, paid cash, did not overspend, and grew their wealth over decades.
@Chris
You missed my point. People act like being poor is a moral failure. It’s not. Some of the poorest people I know are also the nicest, openest, and most accepting people I’ve ever met.
Lin said:
@Chris
You missed my point. People act like being poor is a moral failure. It’s not. Some of the poorest people I know are also the nicest, openest, and most accepting people I’ve ever met.
Agreed. There are mean and nice people at all income levels and financial situations.
And? People without money still aren’t bad. They have different circumstances.
You only live once, tho.
Ari said:
You only live once, tho.
You can choose to only live once and live forever if you believe in the Truth.
Ari said:
You only live once, tho.
You can choose to only live once and live forever if you believe in the Truth.
Yeah, but I don’t.
Yes, and I strongly believe in enjoying it. But I also want to enjoy it for a long time. The likelihood of me dying early is low. I don’t want to age broke.
I’d like to add: set an absolute cap on your living expenses, rather than basing it on a percentage of your income.
Jess said:
I’d like to add: set an absolute cap on your living expenses, rather than basing it on a percentage of your income.
Great addition. I have seen plenty of posts where someone is asking what is the best way to finance a $20K car. And this person makes $3,000 a month. My response is ‘don’t.’ Your lifestyle needs to be a reflection of your financial framework. Give it time.
@Chris
100%, particularly long-term costs like housing and cars. I know current prices make it difficult, but the mindset change helps. Both times I’ve bought homes, I set a top level I was willing to pay which was well below what I supposedly could afford. Housing became essentially recession-proof.