Changing your view of money

Last updated on February 1st, 2021 at 08:34 am

Not having enough money makes for financial problems that no one wants to deal with. Below are some different ways to view your money.

Change your view

Money in its most basic form is an exchange of goods and services. You go to work and in return your employer pays you for your service. When you go to the store, you pay the store for their goods. To grow your wealth and reach your financial goals, this basic understanding about money will need to be expanded.

For example, when you buy a new car as soon as you drive off the lot your car value can drop 10% and as much as 20% according to a Carfax report. The odds of you being upside down financially are high when buying a new car. If you take out a loan, this amount can be even higher resulting even in a bigger loss.

View money as a tool instead of just an exchange for goods and services. I define a tool as something that helps aids a task. As a tool you can leverage money in a variety of ways such as building wealth to achieving financial independence. Some examples might be to buy a car that is a few years old instead of a new one if it solves the need of owning a car. Perhaps invest in the stock market or even start out by getting a high interest savings account.  As soon as your mind shift changes on your money, the sooner you can save and build your wealth.

Debt kills Money

One of the biggest vampires to your wealth is debt. Even 0% financing can add a bill impacting your monthly spend. For example, a 0% financing offer might be appealing, but in reality it is still a new bill that will need to be paid off before getting back on track. Debt limits the amount of cash you can use as a tool to your benefit.

One of the best ways I found to get out the cycle of debt is to take it slow. A debt snowball is a proven method of getting out of debt. The idea is this, to compile all of your debt and list it out based on its interest payments and amounts. Then take the smallest remaining debt and pay it off. Once a single debt is paid off, move to the next debt and focus the opened up money on the next debt. As you pay off debts, each payment amount will be free to apply to the next debt. When you are debt free, you can use the newly opened up cash to grow your wealth.

You have enough

I have often heard “I can barely cover my expenses working two jobs, how is that enough?” There is always something that you want to buy or possess that is outside of your financial means. If you were to take the money you have, and look at it from a holistic view you will notice where changes are needed. Set a a monetary goal for your current income and savings. See how you can achieve those goals and start small. Saying you have enough money is not a simple thing to do, but doing so will move you towards being in control of your money instead of your money controlling you. Put your money to work removing debt and building wealth. Thinking you have enough will also help you lead a happier life and operate outside the umbrella of constant worry of not having sufficient cash on hand.

Money is Long term

When you invest capital, it will grow and shrink. If you track any investment in the short run for example by a metric of a few weeks, the trends will look like a roller coaster. Any investment is subject to gains and losses especially in the short term. These short term losses should not be cause for concern since returns are viewed in the long term.

If you view the Dow Jones not in terms of short months but over a course of years, it is easier to notice how money is a long term plan.

YearAverage ClosingOpeningClosingChange


If you look at the table, you will see a trend over the course of 10 years the average rate of change is 9%. If you were to take into account interest growth and compounding, it would show even more growth in the long term. Another way to keep growing money in the long term is to avoid trying to beat the market. Studies have shown that more often than not this action will cause a loss.

Set a Goal

When setting a goal your sights should not be to become rich. Your goals should be around looking at what is possible, plus what financial goals will support your desired lifestyle.

Once you have a goal, figure out how methods and a strategy to achieve it. Set a long-term goal and a short-term goal. The short-term goal would be immediate actions you can take that can help start the long-term goal. Do not be afraid even after setting that objective to change it or reevaluate the goal.

Final Thought

Money is a tool and should be treated as one. Money has to be used to pay your fixed costs and fund your necessities in life. Leveraging your money as a tool will also allow support chasing your financial goals. This will allow to do things that make you happy, such as a vacation or an experience you were hoping to enjoy.

It is important to be aware of things that might remove the effectiveness of your capital and net worth. Debt and frivolous spending will delay and subtract from your financial growth and take away from your goals and retirement.

If you invest cash and apply it as a tool to help grow your wealth you can put it to work in a variety of investments.

These changes are hard and take effort to change your mindset on money. When cash is used to your advantage you will be on your way to reaching your financial goals.

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