by Jaynee Sasso
Credit scores, debt-to-income ratios, and diversified investment portfolios only reflect one aspect of an individual’s financial health. The greatest gift to your financial success actually lies between your two ears. The way you think not only can empower you to survive, but to thrive in the upcoming year. To thrive means that you are making steady progress. Your daily focus should be to make financial decisions that leave you better off than just the day before. The key is to look at every dollar spent as an investment in your future and attempt to get the best rate of return possible.
The mind is one of the most powerful weapons that you posses in your fight against the continued deterioration of our economic system. Unfortunately, things will get worse before they get better. As a result, you must challenge yourself to determine how you can position yourself for success. Past failures and successes can all be traced to how you initially perceived and responded to various challenges in your life. Once you conceive of a goal, then you can begin to take action. Your actions will ultimately line up with your thoughts. Therefore you must focus on developing a mindset for success in 2010.
The word poverty not only describes the situation of a person who has no money, but it can also describe an individual’s state of thinking. So often we like to blame our boss, spouse, children, or circumstances for our lack, when in fact it has been our thought process that has brought about bankruptcy. A person with an impoverished mindset does not hold himself accountable for the decisions he makes, rejects anything that challenges her personal growth or development, and is often consumed by how he feels. Instead of telling yourself that you “don’t have any money,” say, “I have money and I need to figure out how I can best use what I have to get to the next level of prosperity.”
Financial success comes in stages. So often we view our circumstances through the eyes of disappointment, but in fact we should be searching for an opportunity to grow and develop. Getting rid of the “If I can finance it; then I can have it” mentality is also vitally important. You must learn how to plan for what you want, and refuse to buy what you can not afford.
Finally, have faith that you can bring about a better future. Many people make poor financial decisions because they have low expectations for tomorrow. They don’t believe that things will ever change, so they tell themselves, “Life is short and I better treat myself now.” But financial success is not about the type of house you live in, the car you drive, or the number of designer labels hanging in your closet. It’s about the longevity of your success and your ability to stay in a position that allows you to prosper in spite of life’s obstacles.
Our current economic crisis proves that far too long people have been in a survival mode. They thought that they were doing fine because they were able to leverage everything they had in order to make end meets. They borrowed equity from their homes, got loans with interest-only financing, borrowed against their 401k’s, and used credit cards to buy groceries. People focused on what they needed to do in order to endure and live through their present financial challenges. They were surviving, but never really creating wealth for themselves or their families. I want to encourage you not to focus on surviving this economic storm but to thrive in spite of what is going on around you.
Jaynee Sasso is President of Faithful Assistants Inc. and creator of coaching program “The Commonsense Way to Wealth.” For more financial tips, visit www.commonsensewaytowealth.blogspot.com. Email firstname.lastname@example.org with questions or comments.