Sharing Daily Discoveries About Personal Finance And Business Topics

Money Mindset of How Much You Earn Versus Others

financial literacy

This was kind of a funny scenario as the other day I was talking to a person on how I ordered a drone he was talking about where it costed me over $1300 or so. He was shocked as to him that was expensive and he would have bought one for himself too if it was cheaper. Then we started to talk about what he was up to and he was telling me how he was hired to do this job that paid about $2000 for a weeks work. He wasn’t that thrilled as he said that wasn’t a lot of money. I of course said to him that $2000 is a lot. He reacted by wondering why I would say that.

It’s so funny with the contrast here I was thinking. Technically speaking, if one doesn’t think earning $2000 is a lot of money then shouldn’t spending like $1300 be considered very little as well? I then asked him why he thought $2000 wasn’t a lot and his answer was he was comparing himself to people who are more established and earn way more.

That’s kind of a bad thing to do I feel financially. In many ways that can mean you are focusing in trying to copy other people’s financial habits as opposed to focusing on what you need. Not only that, the psychological effect you place on yourself is probably the worst as you are in a way convincing yourself that you never have enough money. I find that tends to give people a closed mind to actually go out and find solutions that work for them financially.

For example, something as simple as the groceries I find some people who are always insisting that they can’t afford anything would always shop at the most expensive places. It’s almost like they do that to prove a point on how little money they have. When it comes to your money focus on what you need and the things you can do with it I feel. I strongly believe it always starts with your mindset about money in general.

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