Imagine a robot bumping into boulders, walking into walls, and falling off ledges while moving around the workplace. Because of that programmed pattern, it gets seriously damaged and needs repairs every week. Although it knows that being damaged is bad, it still can’t stop itself from bumping into walls or falling off ledges as those are what it’s been programmed to do. Humans behave in a similar way and knowing how to change that is the number one key to learn how to save money:
If we change our “bad programming” or bad spending habits, we will certainly stop damaging our financial future.
“The happiness of most people is not ruined by great catastrophes or fatal errors, but by the repetition of slowly destructive little things.” – Ernest Dimnet
Other Articles about Saving Money:
How to Save Money by changing Your Thought Patterns
Bad Thought Pattern #1: Anticipating the Next Salary
I still remember my former coworkers complaining about how hard it is to keep waiting for the next salary day and how, on the 15th or 30th of the month, some of them eagerly ask if our paychecks have been credited to our bank accounts. If you see yourself doing that, you should stop that habit at once.
Why is being excited about your salary a bad thing? This is a lesson I’ve learned from Robert Kiyosaki’s “Rich Dad Poor Dad” and it’s one I can NEVER forget: Most people with the employee mindset behave like drug addicts or alcoholics, eternally chasing after the next paycheck.
Did that strike a nerve? Knowledge is the first step to change. When you know there’s a problem (“bad programming”), then you can find a solution for it.
The greatest solution for this negative thought pattern is to develop good financial habits like learning how to budget, building emergency funds, and learning ways to invest and earn more passive income. Stop anticipating the next (drug fix) pay packet, think of ways to earn and invest more, and make financial freedom your goal.
Bad Thought Pattern #2: Saying or thinking “I have no money”
“I have no money” is something I usually hear from my friends and former co-workers. While it usually means “I don’t have money I can freely use right now,” on other times, they mean it literally: They spent all their money and they’re simply trying to survive until they receive their next paycheck (see #1 again).
This is something you should know: Our thoughts become reality. When we say we have no money, we subconsciously move in ways to MAKE IT COME TRUE. Just like that robot, we don’t know that our programming is causing us harm.
Again, the solution is to learn or “program” BETTER habits and thought patterns. Just like #1, save, invest, and consciously admit to yourself that there are greater things in life that you will spend money on and you’re saving it for those. You’ll feel better when you know that you DO have money AND you have the discipline to save it for what’s important.
“Don’t tell me what you value, show me your budget, and I’ll tell you what you value.” – Joe Biden
Bad Thought Pattern #3: Saving money… to buy expensive luxuries
If you want to climb to the top of the mountain, will you reach it when you’re too busy hopping down from ledges? It’s the same thing with finance: Many people want to get rich so they try to buy the cheapest things to save money more and more… only to spend it on some expensive new luxury, like a new gadget, a new car, expensive clothes and jewelry, etc. That’s a bad thought pattern right there and then they wonder why, after all those years of climbing ledges and jumping down they haven’t reached their goals yet.
Earn a million, jump back down to zero. If you find yourself guilty of that habit, then know that the way out is easy: Pay Yourself First!
Every paycheck, take out and spend a small portion of your money for greater goals: A wonderful home or apartment you plan to rent out, a profitable business, security and prosperity for your family, quality education for your children, become wealthy enough to build schools and hospitals for poor communities, …or maybe even better!
Do not destroy your wealth and dreams for the sake of instant entertainment.
Like I said in my budget plan post, you can spend your money however you wish AFTER you’ve saved and invested for your future. There’s always room for fun as long as you have your priorities straight. You can afford to have FAR more fun when you’re wealthy than when you’re just barely scraping by.
Those are just three negative thought habits that you can change if you want to learn how to save money. There are many more negative thought patterns out there, but just starting with the ones here will almost guarantee that you’ll make a lifelong change for the better.