A Savings Mindset
In a recent interview about personal finance, I was asked about my first memory of money and what it meant to me. I immediately thought about my jobs during my teenage years and how I was never in a rush to spend my paychecks.
I realized early on that building up a stash of money over time to have at my disposal felt good. Holding onto that money gave me a feeling of control and choice— It was empowering.
During those years, I was usually saving up for something like a pair of designer jeans that my parents weren’t willing to pay for, or maybe it was for a “real” Sony Walkman because the quality of sound was so much better that the off-brands.
Wait… did I lose you at “Walkman”?
Other times I was simply saving up my money just so I knew I had it for a want or need that may come up in the future.
When you think about it, the practice of saving your money inherently develops a mindset that can positively impact non-financial areas of your life as well.
For example:
Long-term thinking - Envisioning what you want for your future
Goal setting - Identifying a purpose to keep you motivated
Prioritization of wants and needs - Understanding what is most important to you and your life
Discipline/Self-control - Instilling consistency and empowerment
Minimizing risk - Keeping you secure and comfortable
Patience - Recognizing that waiting can often reap greater rewards
Independence - Teaching accountability, confidence, and pride
All of this can be gained just by getting into the practice of saving your money? Well…yes!
That’s what developing good personal finance habits does for you. It establishes a rhythm in your behaviors and shapes a new attitude toward money, and that change often ends up influencing your views and approach toward many other areas of your life.
So say NO to those impulses that are pulling you toward the desire for instant gratification. Just because you have it (money), doesn’t mean you should spend it.
Mastering a savings mindset will take you far beyond the specific financial targets your are aiming for.
It will create a whole new (and improved) perspective on the way you think about everything!