Yahoo Finance 5 ways to get better at making money
The coronavirus pandemic has forced many of us to rethink how we make money and even ask ourselves: are we any good at it?
It’s estimated that two-thirds of Australians have had their finances impacted by COVID-19, with nearly half of them predicting it will take at least three months to get their financial goals back on track, a new AMP survey has found.
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Self-doubt can affect our mental health and ability to rebuild wealth. From a scientific point of view, if we repeat a thought or behaviour often enough it becomes a hardwired habit, and that habit can be a difficult one to break
According to Pascale Helyar-Moray Founder and CEO of SuperRewards people create mental barriers to wealth by telling themselves phrases like:
“I don't know enough about money”;
“I don't understand money or finance”;
“My partner handles all the finances; I don't need to worry about it”;
“I'm not comfortable with the thought of being wealthy”; and
“Money is bad”.
The good news is that it’s possible to change our thinking on wealth by building alternate neural pathways in the brain.
Known as neuroplasticity, it’s the ability of the brain to change its physical structure and function based on experiences, behaviours, emotions, and thoughts.
To achieve lasting change, psychologists recommend using emotive phrases or thoughts and even calling on your five senses particularly visualisation when creating new habits.
Here are 10 phrases that you may like to call upon to change the way you think about earning money, investing and spending.
1. “Do I really need it?”
This one is very helpful to those of us who love to shop.
“I am always very tempted by the fashion and beauty emails that arrive in my inbox!” says Ms Helyar-Moray. “But the reality is now and particularly during COVID-19, that there are fewer and fewer opportunities to wear these items.
So now, before I purchase, I ask myself: "Do I really need it?" And if the answer is yes, then I ask myself "Do I really need it right now, or can it wait a month or two?"...by which time it will probably be on sale,” she says.
Often, we fall into the habit of buying on emotional impulse when we actually can’t afford it, or don’t need it. The result can be one of a short-term high, only to have that feeling fade away soon after.
The more you ask yourself this question “Do I need it”, before purchasing, the more you are creating an alternative thought process in the brain and pathway to a new behaviour.
2. Compound interest is your greatest friend
This is a popular one and there is good reason for this given that compound interest effectively allows you to earn interest on your interest. This is great for reminding yourself of when it comes to long-term investments decisions such as putting money aside in a cash savings fund or in superannuation.
3. Spending on quality is always a better investment
Generally spending on quality items at the right price, costs you less in the long run. As legendary investor Warren Buffet said, “Whether we’re talking about socks or stocks, I like buying quality merchandise when it is marked down.”
4. There are easier ways to make money
“It’s important to think about what possibilities are available,” says Yvonne Hilsz business sales strategist coach. “It’s about having a growth mindset, rather than a fixed one and working smarter and not necessarily harder.”
5. Everyone has the right to create wealth
Some of us just don’t think we deserve wealth or we think that if we get wealth, that will change who we are in a bad way. To address this negative thought pathway, Ms Hilsz says we must give yourself permission to create wealth.
“It is quite extraordinary when you see someone actually understand that concept and really say to themselves, “okay I can and I do deserve this.”
“It’s about creating more of the belief that it is okay for you to have money and it is possible for you.”
Bianca Hartge-Hazelman is the author of the Financy Women’s Index and founder of women’s money website financy.com.au. She is also a proud contributor and supporter of Yahoo Finance’s Women’s Money Movement.
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