“Thoughts are Things” was a book written by Prentice Mulford over 100 years ago. The message has stood true for the last century. The basis of the book details that what you allow to go through your mind can dictate your path to success. In the last few weeks I have come across friends and clients who have had the wrong thought process in relation to their money and material possessions. What I have come to realize is that people often use money and possessions as a way to boost self esteem. This can lead one down a path of wasteful spending on items that add zero value to our daily lives. If you think about owning an 80- inch flat screen television more often than the health of your emergency fund, you may be broke with a nice looking living room. The sad part is you will impress people who are just as broke as you, however you will feel good about the compliments while still struggling financially.
Understanding the best ways to utilize your money can seem like a mystery because money never comes with instructions. Couple that with the fact that companies do a great job of using the media to constantly pushing products in our faces. As consumers we must do a better job of deflecting those ads. You must ask yourself three questions when making any buying decisions. 1.) How does this purchase affect my finances? 2.) Is this purchase a need? 3.) What value will this purchase add to my life?
I truly believe that if more people were to look inside and ask themselves those three questions many people would immediately improve their personal finances. The reason behind it lies in our emotions. We often make buying decisions based emotion instead of logic, which is the wrong approach. We may think we need something because will make us feel good in that moment. But what about afterward, when the lust of the moment wares off? It could be that you have never given it any thought. That is quite fine, conditioning the mind to think in this manner is not done at the snap of finger, it will take time.
Remember the three key questions you must ask yourself during buying decisions, they are 1.) How does this purchase affect my finances? 2.) Is this purchase a need? 3.) What value will this purchase add to my life? Do that to begin reframing how you think about your purchases.