The poverty mindset is living with a flight or fight mentality
I will admit I have a problem. Actually, more than one honestly. There were a good 30 days straight recently where I ordered something from Amazon every day. I knew I couldn’t afford to do this when I did it, but I did it anyway. I was choosing to live moment to moment. I had what I call the poverty mindset.
The poverty mindset, to me, means you live with a fight or flight mentality. You live each day as it comes with no preparations for the future. If you only have $30, you will spend it all on lottery and crab legs instead of being frugal. It is, in my mind, a survival mechanism. It is one I see all too often. When you are fighting for survival, immediate gratification is the only thing that matters.
Pay Rate
I implemented a rule of thumb in my spending that has made a huge difference for me. First, figure out the amount you get paid hourly. Then, before you buy anything, figure out how many hours you will have to work to pay for it. This method has been extremely beneficial for me.
Envelope
I like to experiment with budgets, but I’m pretty dead set on the envelope budget now. I think. It seems to have helped me the most save money on a near constant basis. This is because I see the envelopes as they dwindle away and I tend to cling tighter to the balances.
Lunch
I’ve said it before and I’ll say it again. Eating out everyday is the fastest way to go into debt. Those small amounts, done frequently, are the things that devastate your finances.
Separate Accounts
Set up separate spending accounts and allot yourself a set amount to spend. Do not go over it. This has also helped me. I can’t give myself an allowance in and stick to it when it is all in the same account. It also helps to hide money from my husband. I mean, my kids.
Credit
This one hurts. Allow yourself to buy absolutely nothing on credit. If you can’t pay cash, you can’t afford it. So, basically, I can’t buy anything unless I pay cash. Instead, every time I get a commission or unexpected sum of money, I gift myself with a little impulse buy.
I want to be responsible financially and also enjoy nice things. It is possible with rules in place.
In conclusion, as with everything, I will spend in moderation now so I can enjoy my retirement with less stress later.
