Like many families, mine never taught me how to make money, how to save money, or how to budget money.
When I first moved out on my own, I went into credit card debt to pay for clothes I couldn’t afford. I lacked the self-discipline to spend responsibly.
Paying off that debt came as a hard lesson in spending less than what you earn.
Maybe you can relate to the feeling of never having enough to do the things you want to do. You rarely eat out at restaurants or go on vacation.
Your mantra seems to be “I can’t afford it,” even while you earn a reasonable income.
Psychology of money scarcity
There is a psychology behind this feeling of financial scarcity. When you grow up in a family that struggled financially, you see money as a finite resource, something that can run out.
When you grow up in a family that struggled financially, you see money as a finite resource. Click To TweetWomen who grow up in wealthy families, however, trust that money will always be there for them, there is lots of it, and many ways to get it.
Maybe you find ways to sabotage yourself when it comes to money. Like the lottery winners who end up broke after a year, you can’t seem to get rid of money fast enough.
Maybe you find it difficult to talk about money or even think about it. For this reason, you have little knowledge of your true financial situation.
Rather than follow a budget, you spend until the money runs out. There is always more month than money at your house.
This was my situation, too, until I made some changes that improved my financial outlook immeasurably.
You don’t need a huge increase in income to gain financial freedom. Or live like a pauper until retirement.
Here are three changes that led to more peace and security around my finances. Even without a big change in income.
1. Trust God with your money
Give without expecting anything in return. And watch the law of sowing and reaping in action.
Instead of holding tightly to the money you have, give more generously. This will lead to a feeling of abundance that translates into an improved financial outlook.
Trust God as your provider rather than your employer. Your job has you on a fixed income but God can pay you in ways you neither predict nor imagine.
Open yourself up to the opportunities He puts in front of you and watch your financial mindset start to change. You’ll find more creative ways to make money and increase your streams of income.
2. Learn how to invest
I attended a free conference that taught women financial independence through real estate investing.
Rather than pay for expensive seminars, I educated myself by reading library books on the topic.
I attended free or low cost meetup groups and learned from others’ mistakes and successes. Then applied this new knowledge to make an investment that ended up paying off.
Becoming a landlord was an amazing learning opportunity and increased my confidence.
The experience changed my mindset to one more comfortable taking risks and thinking outside the box. It helped minimize my fear around my finances.
3. Adopt a minimalist mindset
When you decide to downsize your life, you reduce the cost of living in tangible ways. Less square footage translates into lower rent or mortgage payments.
When you decide to downsize, you reduce the cost of living in tangible ways. Click To TweetDriving a fuel efficient car or choosing to use transit if you live in a city also saves money.
When you declutter your home, you can earn money by selling those quality items you no longer need or use. You save money by shopping less because you no longer want to bring things into your home that will clutter it up.
If you do a good declutter of your clothes closet you earn money selling items online or on consignment.
Streamlining your closet transforms your life by taking all the stress out of choosing outfits. It will save you incredible amounts of money as you become more mindful about shopping.