Four Money Thoughts That Can Change Your Life

1. How to make more money.

You can’t. That’s right, you can’t make more money. You can only earn more money. You aren’t the Treasury Department and you don’t get to print it up when you need it. Money must be earned.

Some of you will immediately respond with “semantics” because you like to argue and would rather argue than think. But there is much more to this statement than mere semantics. We are at a sad place where people seem to have forgotten that wealth at every level is earned at some level.

Too many people don’t understand that their money is a payment for a service rendered. They certainly don’t like facing the idea that the reason they don’t have much money is because they don’t offer much of a service, or don’t offer a service that is worth much.

Sadly, I have discovered that people don’t really want to earn more money . . . they just want to have more money. I guess the Money Fairy is supposed to slip into their bank account during the night and deposit money. Even the Tooth Fairy expects you to leave a tooth behind in exchange for the money. You give up the tooth and the Tooth Fairy gives up a little coinage. That’s how the Money Fairy works too: You give up a little work, a little effort, a little service and the Money Fairy shows up with a little money.

So if you want to have more money, read on.

2. How to have more money.

There are only two ways to have more money: increase income and/or decrease expenses. Hopefully a combination of both. This little principle works for government, business and individuals.

I’m not going to spend any time here explaining what you could do to increase your income, as that is up to you, your talents and the time available. And if you want to know how to decrease expenses just look at how you are spending your money and figure it out. It’s not hard to look at your spending to evaluate what you need, what you want and what you can live without. It’s all about priorities.

3. Set good priorities.

Your time, your energy and your money always go to what is important to you. When I was doing my A&E television show, Big Spender, I would spend ten minutes walking through someone’s house, another ten minutes looking at their checking account and then their credit card statements and I could tell exactly what their priorities in life were. I had a couple that spent 40% of their income on food. You can guess their size probably but it was more than that. Food was their obsession. It was their priority to the point that their bills and house and cars and even their appearance suffered. I had a father who spent more money on his three pack a day cigarette habit than he did on making sure his kid had a roof over his head and a car to ride in and milk in the refrigerator. His personal pleasure was more important than his family as evidenced by his spending. If you spend more money at the mall each month than you do on having a secure financial future, then looking cute if more important to you than being financially secure is.

Finances are like a good crime novel; if you want to know who is guilty, follow the money! Take a few minutes and evaluate your spending to see what your real priorities are and if yours need some realignment, then start now!

4. Get your mind right!

Each of these points I’ve made here are as much about how you think than anything else. It’s about getting your mind right. Begin to think in terms of earning money instead of magically making money. Get your mind wrapped around the simple idea of increasing income and decreasing expenses instead of easy way outs and get rich quick ideas. And most importantly get your mind right about what is really important to you. Is the temporary exhilaration of the moment more important than the long-term satisfaction that comes from investing your time, energy and money in things that really matter?

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  • http://lifeandmyfinances.com LifeAndMyFinances

    True true. Either you can have more money by decreasing expenses, or increasing income. Personally, I like to do both! My wife and I live on about half of our income currently, and we’re both expanding our side businesses as well! :)

  • http://www.virtual-debt-relief.blogspot.com Debt Guy

    Wow Debt Kid, this is the “tough love” approach I guess. But, really, this is the approach one has to take. I totally agree with your four points here.
    I remember when I came to the realization that just because I was doing a good job didn’t necessarily mean I deserved a raise. Unless the job I was doing somehow contributed to additional revenue for the company, hen I didn’t deserve any additional revenue.
    This is how it works if you are a small business owner; you only make money when the business makes money. Having been a small business owner, I now don’t expect a raise unless I have rendered a quantitative service to my employer.

  • http://savingsscoop.com/ Andrea

    I like thought #4 Get your mind right.

    A good friend always tells me this when I attempt to try something new.

  • http://www.pinchthatpenny.net Bryan at Pinch that Penny!

    Although I am a lover of arguing about semantics, I appreciate your first point. Our capacity to earn is (theoretically) limitless; we’re bound only by how much we ourselves put in.