How to get the right attitude about money
You know you need a cash reserve, but sometimes knowing something, and doing something about your knowledge are two different things. You may know exercise is good for you, but would rather watch television, etc. So, your attitude toward money is going to be one of the first things that you have to change if you are going to be successful at building a cash reserve.
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The first attitude adjustment you need to make is that you are not entitled to money, or the things that it can buy. This attitude will make it impossible for you to cut back, save, and build a cash reserve. When you look at money as something you deserve, or have a right to, you put yourself on a downward spiraling path of debt and financial hardship. It means that when you get your paycheck, you justify spending more than you earn based on how hard you work, how much of a break you need, or how much you would like to have the items. Spending outside your means is an emotional approach to money, based on a feeling of entitlement, and if you do not change your approach you will always have debt, and never have a cash reserve.
Pretty much everyone wants to be out of debt, have a nice cash reserve, and be on their way to wealth and fortune, but how many people are actually taking the right steps to do that? When you are emotional with your money, you are not on the right path. Emotions say to spend, you deserve it, want it, and can figure out a way to pay for it later. A logical approach says that if you do not have money for it, do not buy it. A logical approach says to save for the possibility of job loss, injury, etc.
It is normal to have the urge to spend, especially when faced with delicious foods, shiny toys, and fast cars. And, spending your money is not a bad thing, our economy would be crippled if people did not spend. However, spending should be done with thought, and should be done frugally, so that at the end of the month you have money to put in your cash reserve.
So, get your money attitude right so that as you make the changes in your current habits that allow you to free up money to put in a cash reserve, you do not undercut yourself with emotional spending, over-spending, and feelings of entitlement.
The best way to get the right attitude about money is to stop seeking instant gratification and to think of money in a long term approach. As nice as a new iPod would be today, or a lunch out at your favorite restaurant, how much better would financial security, and being on the path to wealth be?
