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Have you ever thought about life lessons about money?
Honestly, most of us haven’t because we go through our day-to-day lives without taking the time to reflect or even journal about our experiences.
This past week, I had the chance to visit my kid’s elementary school during lunchtime. It has been a LONG time since I have stuck foot in a lunchroom. Wow – that room is loud! Really quickly I realized some lunchtime lessons we tend to forget in life.
These are the best money lessons you need to know.
The teachers were present to keep the lunchroom in order. My hats are off to them! They are amazing ladies with gifted talent (and personally, I am thankful for each of them). They kept control of the chaos to make sure the students did what they needed to do – eat lunch while still enjoying their friends.
After observing the students and the teachers, I realized habits start at a young age. If those habits, don’t change. Then, the cycle repeats. As kids, we learn behaviors whether good or bad (and most of them stick with you through your adult life).
It is a matter of choosing which path we want to live.
So, you are probably wondering what does an elementary lunchroom and money have in common??? I’m going to unpack four lessons learned in grade school that people struggle with in their money life.
These are the financial lessons you must embrace to enjoy a life of financial independence.
How Can I Learn About Money?
Just like reading, writing, and arithmetic, financial literacy is important. It is a building block to becoming financially secure. More specifically, being smart with money opens up doors of opportunities.
You are in the exact place you can learn about money.
Here at Money Bliss, we believe people want to learn to alter money management, so they can enjoy life and money.
Unfortunately, financial lessons are not taught in school or at the home.
So, that means as a college student or young adult, you must become self-taught. There are lots of various opinions and advice that you can get. Some of the best money books are highly rated because they have solid money management tips that are life-changing.
Stick around our Money Bliss tribe! I guarantee you will find insightful tips as many others have that will change your personal finances.
Money Lessons You Need in Life
The important lessons in life are simple.
They are basic practices in life. These are not specific tactics to help you get out of debt, budget better, or save more money.
Your mindset will determine success or failure – just by how you are thinking.
Research has proven that your mindset will determine your outcome.
These are the daily money lessons you need to remember that will help you reach financial freedom.
These life lessons about money are you already know, but you may need to practice them more often.
1. Stay Disciplined
The first lesson is about discipline. Going back to the lunchroom, the kids know the expected behavior. It takes discipline to sit down and actually eat lunch vs. throwing food and chatting with friends then no food is eaten. As adults, we know how much income we make and how much we can spend. With money, it takes discipline to stay within a budget or as I prefer to call it – Cents Plan.
In today’s society, there are many ways to fast cash whether by using credit cards, payday loans, or even a home equity loan. It is super easy to rack up thousands and thousands of dollars in debt in a short amount of time. While it may be fun spending all of that fast cash, it comes at a steep price called interest.
Discipline is living within your means.
It takes discipline to say, “No, you can’t afford this.”
Even better is learning how to live below your means and save more money each month.
2. Avoid Pushing the Boundaries
Oh, children are the best at the second lesson! How far can I push the boundary? At what point, do I actually cross the line? During my time in the lunchroom, I observed students after students trying to push the boundaries. Remember, they have wonderful teachers who have taught them the expected behavior.
However, it is natural behavior as humans to test the boundaries.
With money, pushing the boundaries typically starts out small. $20 over on groceries this month. $100 on eating out because we had to celebrate a birthday. Picking up that one item just because it is on sale even when there isn’t enough money to cover the basic expenses. Then, after time, it starts a snowball effect.
It just keeps rolling and rolling, getting bigger and bigger until overspending is out of control and the person is now smothered in debt.
With money, is pushing the boundaries truly worth it? Why should you test your own boundaries when money is at stake? The answer is no. Stop pushing the boundaries.
In the end, you are only hurting yourself financially by testing the limits and causing undue stress.
Related Money Management Posts:
3. Keep the Focus
Um, hello? Are you listening? Still, reading? Good! Yes, focus is the third lesson.
The lunchroom serves one primary purpose – fill up the belly with food before the next class comes in. However, my observations proved that was the last priority on any of those kids’ agendas. Thankfully, the wonderful teachers were present to provide guidance and focus them back on the task on hand. Did it take one reminder? Um, no. Many reminders to stay focused on their primary purpose.
In our society, there are MORE distractions than ever before. Plus the distractions will keep growing exponentially as technology advances and history has proven. So, what does that mean for you and your money?
Develop a plan and stay focused. Don’t stray. Don’t let others change your plan. Focus.
When we paid off our student loans, we were focused on ONE thing. Pay off our loans as soon as possible. Thus, freeing up cash flow in our Cents Plan. We didn’t stray. No changing our minds when things got tough. We stay focused on our vision – PAY OFF OUR STUDENT LOANS.
Staying focused means creating an overall money vision and making money goals.
Every single day, you are focused on making decisions that will make sure reaching your money goals is attainable.
4. Accountability
Teachers through school help keep kids accountable. They were present in the lunchroom making sure chaos didn’t break out. These teachers provide a firm guiding hand with a huge dose of caring love.
Wouldn’t it be great to have an accountability standard for money? Unfortunately, we don’t have many great examples around us. The U.S. Government is trillions of dollars in debt. Most Americans carry debt on their shoulders while living paycheck to paycheck.
We have never been taught to be accountable with money.
The first step to being accountable with money is an accountability partner – either your spouse, friend, or coach. Someone who will keep your best interests in mind.
The second step is to have benchmarks to hold yourself accountable to. Understand how our tagline “Where Cents Parallel Vision” means to you and how to apply it to your life. Make sure to set long-term visions with attainable short-term financial goals. Also, journaling your journey is a great way to stay focused and track progress!
If you are struggling to find accountability, make sure to join the Money Bliss Tribe!
Related Money Management Posts:
What’s the best lesson you’ve learned about money?
Personally, for me, it is living with millionaire habits and possessing their mindset. This all happened well before becoming a millionaire and deeply in debt.
It started by believing that I could be successful with money.
These powerful money lessons helped shaped my perspective, and ultimately, the desire to change money statistics with this blog and online business.
If you are stick in the negative mindset of always being poor or broke, that is where you will stay (unless you decide to take control of your mind). Living paycheck to paycheck is an unfortunate place to be.
If you believe that you can become a millionaire, then that is the best lesson you will learn about money, too.
Every money decision is a building block towards financial freedom. There isn’t one thing that will take you from negative net worth to over $1,000,000.
It is a cumulative effort of many daily resolutions that will change your personal finances.
You Need these Important Lessons about money
All of these money lessons we learned early in life, but still need reminders on a constant basis.
In all honesty, they will help every facet of your life. Build the life of your dreams and find money success.
Don’t forget these personal finance lessons:
Stay disciplined
Stop pushing the boundaries
Focus on money goals
Keep accountable
Think like a millionaire
In order to succeed with money and become financially free is to put into practice the lessons taught in school. We don’t have teachers watching over our every move to guide us.
We need to remember why it is so important to stay disciplined, stop pushing the boundaries, stay focused on our plan, and find accountability.
One of the benefits of the Money Bliss Steps to Financial Freedom is it provides a guide with all of these money lessons on how to succeed the fastest.
The steps are to be done in order, therefore, stay focused on the current step and not be distracted. Ten steps to walk through your life’s journey. They won’t happen overnight.
Just like in school… you took one grade at a time, learn what in needed to advance to the next grade.
Take these important lessons about money and willingly use them in every aspect of your life. You will be overcome with how much you are capable of accomplishing!
The Money Bliss Steps are developed to build upon one another and lay the foundation for financial freedom.
Learn how to manage your money, your way. Not have your money manage you.
Side note on teachers and mentors… I am thankful to all of the teachers who dedicate their lives to enriching students’ lives. Each and every one of you makes this world a better place! Thank you.
Know someone else that needs this, too? Then, please share!!
Did the post resonate with you?
More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!
Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.
Inside: Learn how to set smart financial goals and change the trajectory of your personal finances. Download our setting financial goals worksheet.
Financial success doesn’t happen just in January. It happens every single day of the year with every single decision you make.
Now, is the time to take your New Year’s resolutions and make them into smart financial goals.
Financial goals will help keep you on track.
There are two ways to look at goals.
You can either set them,
or ignore even making financial goals.
A lot of people don’t like to set financial goals because they feel like they are setting themselves up for failure. (And that is a money mindset that needs to be broken!)
However, by setting smart financial goals, you are more likely to make progress on the things that matter to you most, and that at the end of the day is the most important.
Too many times we see that people are stressed about money and their finances. They prefer to ignore their money situation and dig their head into the sand. You can quickly see that will only make the situation worse, and progress will NEVER be made.
Today, we are going to examine smart financial goals, give a few examples of goals to start with today, and then let you think BIG on long-term financial goals.
Let’s dig in and change your financial future…
What is a Financial Goal?
A financial goal is writing down what you want to accomplish with your money.
It can be big, it can be small.
The size and scope of the money objective does not matter.
The most important part is that you are making a decision, ahead of time about what you want to do with your money.
Everybody has different goals.
Comparing yourself to others is worthless. Each person is on their own financial journey. The only comparison that needs to happen is what is going on with you and your situation.
What are the 5 smart goals?
First, you need to make your goals with this template in mind.
Then, you will become the next millionaire with no money.
S – Specific
An overarching vision for your life is fabulous and will help you to keep on track of what you want to achieve. However, when it comes to making smart financial goals, they need to be specific.
You must clearly identify or define your goal. Be specific.
M – Measurable
With your goal, you must consider how you plan to measure it. Thankfully, this one is easy to quantify with personal finances.
You can gauge progress with dollar amounts or percentages.
If you are paying off debt or starting your journey to saving money, then using dollar amounts makes sense. If you are striving towards financial freedom, then you are looking at savings percentages or metrics to increase your net worth.
A – Attainable
With the smart goal format, we are quick to back off our goals because we don’t think we can achieve them. Don’t sell yourself short.
It is better to reach 80% of your goal than to walk away from it completely because you are 80% closer today than before you set your goal.
Go for a stretch financial goal; you will probably surprise yourself with what you can accomplish. Use those money mantras to keep you on track.
R – Realistic
Think about your financial goal logically. In a levelheaded voice, ask yourself if you are capable of reaching this goal today.
You have to be realistic about the season you are in and what your next financial step is. With the smart goal template, this is the point when you break up your goals into smaller pieces to set reasonable goals.
State your goal in a positive statement.
T – Time-Bound
The last part of the 5 smart goals is probably the most forgotten. Yet, it is the most important to reach your goals.
Changing your perspective on time planning will vastly improve your results.
Keep your financial goals within a timeframe of under 3 months.
Loftier financial goals that are long-term – that is great! You must break them down further into mini-milestones to reach your long term goal.
SMART Goal Example:
A great smart financial goal example would be these statements…
Starting today, I will save $96 each week for the next 52 weeks by transferring money when I get paid.
I will pay off an extra $3000 of student loan debt six months from today.
This year, I will increase my savings percentage to 15% by paying myself first and living off the rest.
These are just a few examples. We will provide more in a little bit.
How To set Smart Financial Goals?
Financial goals will help you make faster progress than you thought possible.
You just must be willing to make changes, be realistic about what you can accomplish, and keep a positive mindset.
Let’s dig in on how to set smart financial goals. This is exactly how you achieve financial goals.
1. Know Where You Stand Financially
That means knowing two important factors. First, what Money Bliss Step to Financial Freedom you are on, and second, what is your net worth?
Those are two benchmarks that will help you to determine what your next financial goal should be.
Without knowing where you stand, you won’t be able to track your progress. Also, knowing your liquid net worth is helpful.
2. Define Your Vision
What is the overarching theme for your life? Think long term 10+ years from now.
Here, at Money Bliss, we like to refer to it as your Dream Big Vision.
This will be the starting point for all of your smart financial goals.
What is the one thing that you want most? This doesn’t have to correlate to money. It can be a LIFE goal.
You must first define your vision to clearly make smart financial goals. Think of it as building blocks. You will progress faster with be stable by building your goals one step at a time versus trying to jump over a few key steps and sinking fast.
Also, make sure you do not have a money block holding you back.
3. Create a Plan
Once you know your Dream Big Vision, you have to create action steps along the way to help you reach it.
That is where the Money Bliss Steps to Financial Freedom will help you define the big financial moves to make along your journey.
Then you can take your personal situation (where you stand financially) and your personal vision to create a plan. Many times your personal finance plan will have many short term and long term financial goals along the way.
Smart Financial Goals Examples
What are some good smart goals? These are the top financial goals we truly believe everyone must accomplish.
Everyone is on their OWN journey.
Here is a list of money goal examples that can be further defined by your situation.
1. Be a constant learner
The first smart financial goal is to be a constant learner. With money management and personal finance, there is so much to learn! We all complain that we weren’t taught how to manage money in schools.
Yet, this is a life-long skill.
Add one or two of these finance books to your booklist. Many of us strive to read books monthly that will enrich our lives.
Recently, I made the decision to want to learn more about investing. While there are a ton of investing books out there (and I have read many of them), I wanted to dig deeper into the investing world. So, I signed up for this course and found a wonderful trading community.
Also, since tax laws are constantly changing, it is wise to stay current on news events and find ways to improve your personal finance situation.
Example #1 – I will read one personal finance book each quarter.
2. Pay Yourself First
This is one of the best long term success factors with money. Yet, it is the hardest for us to grasp.
You must pay yourself first … meaning you save money today for another purpose later.
This is one of the best ways to not be knocked over by unforeseen circumstances and to stay out of debt.
Early on, you must fully fund an emergency fund.
Then, consider saving for a rainy day fund, a down payment on a house, or retirement. This is one of the best money management tips you don’t want to skip.
Example #2 –I will set up automatic withdrawals of 10% of my paycheck to move into a savings account and $200 to Roth IRA when I get paid.
3. Multiple streams of income
A conversation I would love to have with my grandpa is about working for one company for 34 years and retiring with a pension. In today’s world, this is a foreign concept and side hustles are the norm. What would our previous generations say?
Now, you need multiple streams of income.
If you say your job is stable and you’re fine. You are….until you’re not.
That is why you need to be proactive in creating multiple types of income. The quick response is picking up a side hustle. Another would be investing in the stock market. Possibly flipping second-hand items. Maybe picking up a second job.
There are many ways to make money fast. But, you must find ways to make money before you actually need the extra cash.
Example #3– I am going to sign up with Neighbor to lend out the space I don’t use to create extra income.
4. Get out of Debt and Live debt free
You can’t move forward when you have debt hanging over your head and holding you back.
Progress is impossible when you are living with and trying to pay off debt.
The faster you can pay off debt, the better off you are. Then, you need to stay debt free.
This is one of the best smart financial goal examples!
Example #4 – I will pay off the total balance of my student loans before I turn 30.
5. Spend less Than You Earn
This is a simple example. Yet, it is more difficult to achieve with the amount of easy access to credit in our society.
This is an ongoing mandate to live by.
You can easily reach many long term goals, by staying on track in the short term.
Example #5 – I will participate in a no spend challenge for the next 30 days to identify what my spending priorities are.
6. Increase your Saving Percentage
This is one of the best ways to slowly increase your net worth and not notice the difference.
Ultimately, you want to save at least 20% or more of your income. There is no limit to how much you can save.
Save more money today, then work less later.
Yes, there is a trade-off to live below your means. But, the long term impact is well worth it plus you can sleep well at night.
Example #6 – I will increase my saving percentage by 1% each month for the next 12 months. Then, I will be saving 12% of my income.
7. Let money flow through your hands
Too many times, people become so focused on their goals that they forget to let money pass through their hands. This could be with giving money to charitable organizations or paying it forward in the drive-through line.
Don’t make this overall complicated.
Just like Dave Ramsay says about giving, “If you can’t live on 100% of your money, you will still have to make changes to live on 90%.” Start small with giving and increase each year.
Example # 7 – I will research organizations I want to donate money to. Then, pick one to contribute $100 a month for the next year.
8. Keep a Financial goal Journal
Research has shown that if you write down your goals, then you are more likely to achieve them. In fact, statistics show you are 1.4 more likely to reach your goals when you write them down.1
So, be smart and keep track of your financial goals! Plus it is great to look back and see the progress you have made. Each milestone that you have crossed. That is great motivation to keep trucking on your current target.
Example #8 – Buy a money journal and track my progress each month. You can even use Google Keep to create a digital journal.
9. Teach others solid money management skills
Throughout your life, you will learn many valuable lessons. Most of them probably came from the school of hard knocks.
Don’t let those valuable lessons go to waste. Help others learn from your mistakes. We all made them and had to overcome them.
One sentence may positively change the trajectory of someone else’s financial path.
This may seem like an odd example of a smart financial goal. However, your journey has been pivoted by others stepping in to help or maybe be watching others fail.
We need more individuals in this world who understand proper money management. Pass down your knowledge to your kids, local school, friends, neighbors, or by volunteering.
Example #9 – Make monthly meetings with my teenager to discuss money. Discuss a success and failure I did in my past.
10. Retire on Your Terms
The final top financial goal is to retire on your terms when you want.
This looks different from one person to another. Some may want to FIRE. Others love their job and never want to leave. Some are forced to work well beyond what they want.
The key to retiring on your terms is to have enough saved up for you to continue your lifestyle without bringing in earned income.
Honestly, putting off saving for retirement is not a smart financial goal.
Example #10 – Open a Roth IRA and deposit $583 each month to reach the maximum contribution amount each year.
Setting Financial Goals Worksheet
If you want to make progress, you have to take action. If you don’t, then you watch from the sidelines and your dreams go up in smoke.
Take thirty minutes to fill out our financial goals worksheet.
Start with your overall vision. Then, break it down into small bite-sized milestones that you can accomplish. Review monthly and set new money goals once you accomplish previous ones.
Which Financial Goal Examples will you Start With?
Throughout this post, we reiterated this concept. But, it is SO important that it is worth repeating again…
This is your journey. Your journey will be different than anyone else. So, don’t spend time comparing yourself to others. Spend time focuses on what you can accomplish.
From the top financial goals, what is your next priority?
Personal finances are a long term game. You must assemble building blocks to slowly climb one step at a time.
Start with some of the best financial books to get started.
Also, use these millionaire quotes to stay motivated along the way.
Comment below on what your current financial goal is.
Source
Forbes. “Neuroscience Explains Why You Need To Write Down Your Goals If You Actually Want To Achieve Them
https://www.forbes.com/sites/markmurphy/2018/04/15/neuroscience-explains-why-you-need-to-write-down-your-goals-if-you-actually-want-to-achieve-them/?sh=c59f73c79059. Accessed May 8, 2024.
Know someone else that needs this, too? Then, please share!!
Did the post resonate with you?
More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!
Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.
Inside: The decision on where you live is a big life choice. Learn how an HCOL vs LCOL area will impact you financially. Plus find the cost of living city that fits for you.
HCOL. LOCL. MCOL. What do these acronyms mean and why should I care?
Back when I was trying to decide where to live, there wasn’t a big discussion about the high cost of living or low cost of living areas.
You just picked a city close to family or branched out to a new area. Were you drawn to the big city or not? Plain and simple.
Today, there are many tools at our disposal to try and figure out what is the best city to live in based on income, expenses, and the lifestyle that you desire.
In this post, you will see how to analyze what type of city you want to live in and see if it makes financial sense for you.
Why such the price difference between HCOL and LCOL?
In a low cost of living city, you can buy a house for $50,000. In contrast, a median home price in a high cost of living city can cost $1.5 million. This is a correlation between supply and demand in the market.
The more people who want to live in a certain area that has less available space will naturally drive up prices. Whereas most low cost of living areas, the supply is abundant since there is plenty of space to spread out and find your own neck of the woods for much less.
Here’s a quick comparison of HCOL vs LCOL vs MCOL.
New York City has the highest cost of living at 100, followed by Los Angeles and San Francisco. This graph highlights the difference in cost of living in these example cities.
HCOL Seattle, WA
MCOL Las Vegas, NV
LCOL Knoxville, TN
Cost of Living Index
85.57
69.33
63.26
2 Bed Apartment Rent
$2,724
$1,176
$788
Median Home Price
$826,200
$441,771
$256,188
Median Income
$92,263
$56,354
$33,229
Data from Nerdwallet, Census.Gov, and Numbeo
What is HCOL area Mean?
Simply put, HCOL means a high cost of living.
This type of acronym is to describe certain areas or cities where expenses that impact your budget the most, such as housing, food, and transportation, are more expensive than other areas.
When defining an HCOL area, it is a comparison of the cost of living based on other areas around other cities, states, and countries.
There is no hard line to define high cost of living since it is compared to the other cities.
Is it possible to live in a high cost of living area? Absolutely, it all depends on how you choose to live, the income you make, your lifestyle choices, and your savings percentage.
VHCOL are VERY high cost of living areas, such as Manhattan, Honolulu, San Francisco, Singapore, or Hong Kong.
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
Pros and Cons of HCOL
Just because an area is labeled HCOL does not mean that you shouldn’t call the city home and stay away from these areas.
There are plenty of advantages and disadvantages of living in a high cost city.
There are always drawbacks to living in a high cost of living area and you have to decide whether or not what works for you.
In order to make a solid decision on where the best place is for you to live, you need to know this information.
Advantages of HCOL City
Job Market is Solid
First of all, in HCOL cities, the job market is stronger, there are more jobs available, and typically those jobs have a higher paying threshold than other areas.
That is why many companies are attracted to these areas because they know the talent pool of potential employees is much stronger in high cost of living area versus other areas where there are not as many skilled workers.
Income is Higher
Since companies know they must pay their employees a fair wage living in a high cost of living area, incomes are higher to support the increased expenses.
This helps those municipalities collect more taxes, which feed back into the system to provide more for their residents.
More Opportunities
More opportunities abound in a high cost of living cities.
Not only in the job market but there is access to public amenities and conveniences. Some examples include museums, sporting events, transit, best medical services, endless entertainment options, quality restaurants, high-end shopping, and quick access to international airports.
Even better, you can find free entertainment each and every day that does not cost a penny. Here is a list of 101 things to do with no money.
There are many benefits of living in a high cost of living area just because their opportunities are endless. You will always find something to do and there is always stuff going on.
Better Schools
Typically, in your high cost of living cities, that is where you will find the better schools. This is in direct correlation to the job market and skilled workers.
These skilled workers tend to have a higher instance of college graduates and they tend to want the best for their children. As a result, the schools tend to be much better than you would find in other areas.
Higher Chance of Home Equity
Another advantage of big cities is the variety of neighborhoods you can find in a bigger city. You can find the type of house you want to live in and the diversity you crave.
While home costs are much higher, there is also a greater chance of income increasing your home equity much faster than other areas.
For example, in Michigan, you could pay $100,000 for the exact same house in 5-10 years since appreciation will not happen at the same rate as other cities. Whereas, if you look at some of the hot markets, like Denver, Phoenix, or Austin, the home prices have been skyrocketing.
Thus, if you live in those quickly appreciating housing areas, there is a higher chance to increase the value of your house.
Disadvantages Of HCOL Cities
Higher Basic Cost of Living – Specifically Housing
First, housing costs can break the bank. It is the biggest expense for any household.
If you were unable to secure a salary to justify the housing cost, it makes it nearly impossible to be able to afford to live in a high cost of living area.
This is where you would have to get creative and look for housing subsidies or other means to stretch your housing budget.
Harder to Find Houses
Another con of a high cost of living areas is it is much harder to find housing! House and rent prices are higher, jobs are tougher to find where there’s opportunities abound, and you may feel like you are searching for a needle in a haystack.
You need to have the right opportunity to find the proper house for you. If you are looking at buying, you need things to line up properly and in your favor.
Stretch Yourself Too Far Financially
Since incomes tend to be much higher, many people find the urge to spend more discretionary income.
In many cases, this means that the average household may stretch themselves a little bit further by keeping up with the Joneses. They tend to spend more frivolously and not live as frugal.
This is a trap to be aware of if you are in a high cost of living area. You can be savvy with your money and save, but you have to be cognizant of how you spend your hard-earned salary.
HCOL Cities…
These are the HCOL areas. Do you need to avoid them? No, but going into those areas, you must realize the cost of living will be higher.
Here’s a list of all of the cities that are the top 20 cities that are high cost of living areas according to Kiplinger:
1.
Manhattan, New York
(145.7% above U.S. average)
2.
San Francisco, California
(94.7% above U.S. average)
3.
Honolulu, Hawaii
(97.6% above U.S. average)
4.
Brooklyn, New York
(80.5% above U.S. average)
5.
Washington, D.C.
(60.7% above U.S. average)
6.
Seattle, Washington
(56.7% above U.S. average)
7.
Oakland, California
(53.9% above U.S. average)
8.
Arlington, Virginia
(50.5% above U.S. average)
9.
Orange County, California
(50.2% above U.S. average)
10.
Boston, Massachusetts
(48.8% above U.S. average)
11.
Queens, New York
(47.8% above U.S. average)
12.
Los Angeles, California
(46.6% above U.S. average)
13.
Bethesda, Maryland
(45.5% above U.S. average)
14.
San Diego, California
(41.4% above U.S. average)
15.
Alexandria, Virginia
(40.0% above U.S. average)
16.
Stamford, Connecticut
(36.4% above U.S. average)
17.
Portland, Oregon
(34.3% above U.S. average)
18.
Fairbanks, Alaska
(27.9% above U.S. average)
19.
Bergen County & Passaic County, NJ
(26.6% above U.S. average)
20.
Anchorage, Alaska
(24.4% above U.S. average)
Source: Kiplinger
What Is LCOL Area Mean?
LCOL stands for lower cost of living.
These cities have a lower average cost of living versus the average.
Simply put…your ability to stretch your income goes much further in a low cost area compared to a high cost of living area. This is where you can get a bigger bang for your buck.
Pros and Cons of LCOL
The differences in the area where you can live can be vastly different. Thus, providing benefits or drawbacks of choosing to live there.
The cons are typically the reasons that most people want to stay away from these cities.
This is where personal preference tends to play the biggest reason for choosing one location over another.
Just like with a high cost of living area, you need to weigh the pros and cons of living somewhere where expenses are not quite as high.
Advantages of LCOL –
Slower Pace of Life
One of the biggest benefits is a slower pace of living in low cost of living area.
Life doesn’t move as fast.
There is more time to breathe, there is more time to step back and take a bigger picture. It is not go, go, go, go 24/7. Time to enjoy the fresh air and slower pace.
Cheaper Housing
This is why people choose to live in a low cost of living area. Period.
You are able to afford much more house for much less.
That right there, over the long term can make or break somebody financially.
Lower Taxes
Many of the lower cost of living cities also benefit from lower taxes as well. They have lower income taxes, and even possibly, lower property taxes. So, this is something to take into consideration when looking at a low cost of living area.
Check what the difference would be from where you’re currently at to where you are considering moving.
Remote Work
This is the bread and butter spot! When you can take in a higher pay and still live in a LCOL city.
After 2020, remote work is becoming more and more popular. In addition, it is an added benefit companies are including to attract skilled employees.
This is one scenario where you can get the best of both worlds.
Disadvantages Of LCOL Cities
Less Opportunities
First of all, there are fewer opportunities. There are fewer things to do, there are less things going on. The airport is a further drive away.
In a big city, you can always find events happening. It may not be the same in other cities. However, some cities have created programs to draw in residents with the big city feel like Bellefontaine, Ohio.
Income Potential is Lower
The job market doesn’t have the high-paying jobs that you would find in the bigger cities. The income potential in one of these cities does not compare.
Let’s face it… a good majority of your working years are about built around making an income. With a lower cost of living city, the income limitations can be cumbersome and it takes longer to be able to reach your financial goals.
LCOL States and Countries with LCOL
Geographic arbitrage can give you great value for your money.
Arbitrage is the spread of differing prices for the same thing like rent, food, or transportation.
This means you can save more money by living in LCOL state or spend less of your nest egg by living in a LCOL countries.
These are the areas you can find the lower cost of living. There are many LCOL cities to be found as well.
LCOL States:
1.
Mississippi
(84.10% of U.S. average)
2.
Kansas
(86.67% of U.S. average)
3.
Oklahoma
(88.09% of U.S. average)
4.
Alabama
(88.80% of U.S. average)
5.
Arkansas
(89.16% of U.S.average)
6.
Georgia
(89.30% of U.S. average)
7.
Tennessee
(89.49% of U.S. average)
8.
Missouri
(89.75% of U.S. average)
9.
Michigan
(90.54% of U.S. average)
10.
Indiana
(90.57% of U.S. average)
Source: US News
LCOL Countries:
Listed in alphabetical order because there are many to chose from based on your personal preferences.
The definition of MCOL is any area that just has an medium cost of living.
There is not one extreme or another. These cities are just plain average. Maybe slightly above or below the median cost of living.
This can be a sweet spot of reaching your financial goals while enjoying a higher quality of life.
Benefits of MCOL Area
As you can read on Reddit personal finance threads, there are plenty of reasons to live in an MCOL area.
Mostly because these types of cities you can get the best bang for your buck, and still have the pros of living in a high cost of living area, as well as the pros of living in a low cost of living area.
This is where the job market may be very stable with good wages but the cost of living is not going to cost you a fortune.
Also, you can find tons of cities that meet the criteria of a MCOL city.
Cost of Living Varies within Cities
Regardless of whether you choose, HCOL, LCOL, or MCOL areas, the cost of living will be dramatically different between these cities.
Whether you are looking at the downtown area, the outlying suburbs, or maybe even the cities that have popped up around near the main city.
Just because the city is HCOL or LCOL, there will be neighborhoods that will be the outliers to the main part of the city.
So, when you are looking at cost of living, you must know the things that are most important to you and what type of neighborhood that you would want to live in because they can be found.
That is what I call hidden gems.
It is possible to find a cheaper house in a low cost of living or high cost of living area, you just have to do your homework and know what you’re looking for.
Vice versa, it is very possible to find a neighborhood in a low cost of living area that is much higher than the surrounding areas.
How can I buy a house in a high cost of living?
It is possible to be a homeowner in a in a high cost of living area. You just have to be able to afford the down payment on the house to make being a homeowner justifiable, if possible.
Before you decide to buy a house, here are some factors you need to take into consideration..
1. Does it make sense?
First, you have to make sure that it makes logical sense to buy a house. Especially in a high cost of living area because the house prices may not match up to what the income that you are bringing in.
Will you still be able to reach your money goals by purchasing a house? Or will you be house poor?
2. Compare rent to potential mortgage
Will it be cheaper to rent? Or cheaper to have a mortgage?
To figure this out, take what the average rent is in your neighborhood. Then, use a mortgage calculator to figure out the maximum amount you can afford.
Since those calculators will leave you house poor. Decide what you are able to justify in spending on a mortgage and figure out what the mortgage payment is.
Is the mortgage payment less than average rent in the area?
For example, it may cost in a high cost of living area, like San Diego, it may cost $3,000 a month to rent a house. Whereas you might be able to buy a similar home in the same neighborhood and have your mortgage payment of $2,259.
Thus, making buying makes more financial sense than continuing to rent.
3. Expand your horizons
Another tip to afford your dream house – do not be set on that one specific neighborhood in a high cost of living area.
Many times you can find an up-and-coming neighborhood that is much less than the trendier and hip current neighborhoods that you want to live in.
Thus, you can typically save a good chunk of money. Plus in the long run, you greatly increase the potential for home equity.
4. New Homebuyer Programs
If this is the first time you are buying a house, then look into first-time homebuyer programs and grants. (Hint… this is like free money!)
There are many out there because cities want their residents to buy in their neighborhood and their cities because that means they are going to be there for a longer-term.
Also, there are programs for the military, teachers, nurses, single moms, minorities, graduate students. You just have to look.
5. Save for Down Payment
When you are looking at buying a house, this is the time to become serious about saving for a down payment.
You may have to find ways to save more money each month.
This could include things like downsizing your lifestyle to make it possible. Living with friends or family while you save up more money. Or just spending less for a certain period of time until you reach your downpayment goal.
6. House Hacking
The last step is one of the best ways to reach financial independence in a high cost of living city. Plus the concept works well in any city… house hack.
Find a multi-family housing property that you were able to buy. For example, plan to live on one side of the duplex and rent out the other. This will help you pay for your mortgage, by using the rent collected from your renters.
Thus, lowing your overall housing cost, which is your biggest expense.
Where Does Your Income Go the Furthest?
This is a comparison that you may be surprised by the outcome. Thus, proving why you need to do cost comparisons to see what financially makes the most sense when deciding to move from one to the other area.
comparison of income, expenses, taxes, and potential savings!!!!!!!!!!!
Once again, this is personal to your situation. So, take a moment and use the cost of living calculator yourself.
Paying taxes is one option to increase what you take home in each paycheck.
No Income States
These are the states that don’t pay state income taxes on wages:
Alaska
Florida
Nevada
New Hampshire
South Dakota
Tennessee
Texas
Washington
Wyoming
For most people, that is an instant decrease in overall taxes!
Higher Taxed States
Also, if you live in one of the higher taxed states, then you may want to reconsider moving to a lower cost of living area.
The higher taxes income tax states include:
California
Hawaii
New Jersey
Oregon
Minnesota
The District of Columbia
New York
Vermont
Iowa
Wisconsin
These states tax income somewhere between 7.65% – 13.3%.
Property Taxes
Property taxes vary from state to state.
In some states with large property taxes, it may even out with no income taxes. While other states, like Illinois, where property taxes are high and income taxes are above the national average as well.
Moving From HCOL to LCOL
The reason that most people move from HCOL to LCOL area is to save money. They want to decrease their expenses – that is the primary driver. Other times, it may be that they’re looking for a different type of lifestyle.
But as you can read on Reddit, everybody has a different personal experience.
It may have been beneficial and may have been bad timing. It may have been the best choice. It may have been the worst decision.
Make sure to factor in the costs associated with the move. Also, any ongoing expenses like travel if you are moving away from family.
How to Choose HCOL or LCOL?
Deciding where you live is one of the most personal decisions that you can make. Nobody can make it for you. You know what you want in life, how you want to live, and where you would feel more comfortable.
So, let’s look primarily at the financial side of making this decision of what is best.
1. Lifestyle You Desire
There are massive differences between HCOL and LCOL cities!! In big cities, life moves at a faster pace. While most cheaper cities areas move at a slower pace, so you have to make the decision of what type of lifestyle.
Do you want you want the big city? Do you want suburbia? Or do you prefer more of a country lifestyle?
When looking at this first factor, your answer should not include money. This is where your heart is. This is where your home. This is the life that you plan on living. This doesn’t include the financial sense.
This includes what makes your heart happy.
2. Your Money Goals
One of the things that discussed the most on this site is the 10 Money Bliss Steps to Financial Freedom. That is where most of our readers find their current money goal. And for good reason, you must build a strong foundation with money one step at a time.
In order to achieve long term financial success, the decision on housing is critical as it is the biggest expense in any budget. And that is can have the greatest impact on your budget!
On the flip side, the amount of income you are capable of making can also make the biggest impact on what you can afford to spend.
You must decide on your current money goal as well as the longer term money vision. Maybe you are looking at wanting to retire early? Love to live a slower life in the future?
It is possible to live in HCOL area where you are able to live extremely frugally and save more money. This is what my friend did over at Tuppennys FIREplace. For them, it was a smarter decision. On the flip side, maybe you are happier living a slower pace of life. Income is not the primary driver and you just want to enjoy life more.
At the end of the day, you must prioritize what you want, how your budget and your expenses correlate, and how your saving rate is impacted in various cities.
3. Season of Life
For those in their younger years may not understand this as much, but as you go through seasons of life, you will realize that you have different goals, objectives, and desires along the way.
When deciding where to live, your current season of life will probably have a very high impact on what you are looking for.
If you have young kids, you probably want to find a neighborhood where you have other families nearby that your kids can interact with.
If you are close to retirement, you may look decide to move out of the good school district because you do not need to pay the premium of living here. You may choose to move to a lower cost of living area, so you have the freedom to travel and help my kids and grandkids.
4. Potential Income & Career Opportunities
The greatest benefit of a high cost of living area is the income potential and the career opportunities. Both are much greater in the bigger cities than you would find in the smaller cities.
If your primary goal is increasing your income and advancing your career, then looking at high cost of living areas an absolute must. Plus you might be able to find something on the outskirts of expensive neighborhoods, that would make the most financial sense.
Then, living in HCOL is justified and necessary and the income can justify the higher costs associated.
On the flip side, there is plenty of income potential as a small business owner in a low cost of living area. You just have to know the market, what your skills are in, and what the needs are in your area.
4. Fixed Expenses
Fixed expenses can be dramatically different in each area.
Write out a list of your top fixed expenses and make sure to compare those as well.
For example, child care costs and tuition are going to be much more expensive in a big city than in the suburbs. Maybe in certain neighborhoods, a car would not be needed; thus, eliminating another big cost and associated maintenance.
While some fixed expenses seem meniscal, over time, they can add up significantly. Thus, helping or hurting your financial picture.
Unspoken Price Tag to Live Somewhere
As we covered in this post, there is a lot to consider when deciding between HCOL, LCOL, or MCOL areas.
It is a highly personal decision that you must take the time to make the best decision for you!
Not someone else, but for you.
One thing to watch out for when looking at where to live is what I call the “price tag” of a beautiful city.
Many times, employers know that the city that people want to live in their city for whatever reason. Thus, you will experience what I like to call the “income hit” to living there.
For example, Fort Collins, Boulder, and Austin are highly desirable areas for postgraduates to live in because they fall in love with the town and they want to stay here for the long term. Thus, employers know that this!
As a result, income for jobs maybe 10 to 15% less than they could make in any other type of market or city. So, that is something just to be aware of when wanting to stay in the city that they have grown to love.
In conclusion, when you’re looking at a high cost of living area versus a low cost of living area, there are two sides to the coin.
One – what makes financial sense. Two – your home is where your heart is.
Consequently, you have to make the decision on what makes sense for you.
While it makes financial sense to move to a lower cost city, at the same time, it may move you away from your family and your support system, and everything that you enjoy, and you may not be as happy in the long run.
Enjoy weighing the alternatives between all of the options available.
Know someone else that needs this, too? Then, please share!!
Did the post resonate with you?
More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!
Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.
Inside: Dream about what life could be if you didn’t have a job? If you are in the boat of I don’t want to work anymore, then you must read this post.
The reality is most people have days where they absolutely have no desire to work. Yet, you know deep down that you have to make money in order to pay your bills.
You are thinking… I don’t want a job I just want a life.
So, what happens when you don’t want to work anymore?
Well, if you don’t want to go to work today, you could take a sick day and get away with it. You can do that here and there for a while, but unfortunately, your employer is going to catch up to the quality of work that you are able to do or not do.
At this point you might be saying, you know I don’t want a job, I just want a life.
And that is very understandable if you don’t want to work in a field anymore job that you don’t love.
You want time freedom in your life!!
We will dive into the reasons for not wanting to work and how to overcome them when you need the money.
What to do if I don’t want to work?
The best thing to do is to find a job that you love and want to do on a daily basis!
Something that you can’t wait to go to work to be able to do. A way to make money that doesn’t feel like a job!
Unfortunately, too many of us feel we cannot do what we want to do when we want to do it. Thus, we want more out of life.
In this post, we are going to detail. If you don’t want to work anymore, what steps can you take to quit the job and live the life that you want?
Is it normal to not want to work?
I think each and every one of us has a desire not to work. Maybe you are thinking “I hate my job.”
This desire to work may ebb and flow based on what is going on, how you are feeling, and your current situation.
Especially if you are in a situation where you do not enjoy your boss, your co-workers, the company culture, or the current assignment, it will make going to work harder.
Whatever your job entails, if you are not enjoying what you’re doing, it is harder and harder to go to work on work every day.
As you can read on Reddit personal finance threads, there are plenty of people who have shared their stories about how they don’t want to work, seeking solace from others, and looking for ways to get out of the current situation that they’re in.
Also, if you are thinking that I can never make it until I am 55 then think about retirement. You are just sick of working and you may be in your 20s, 30s, or 40s.
It is okay to dream about not working daily!
Why We Don’t Want to Work
There are several reasons for not wanting to work.
Primarily many people do not feel engaged at their jobs, which makes them less likely to want to continue working. Gallup found that only 15% of employees feel engaged at work.1
In addition, there is an increasing amount of competition in the workforce as well as a lack of clear career paths and advancement opportunities for those who desire more freedom or flexibility with their careers. This can lead someone to think about becoming self-employed or going into a different field.
There are many reasons for not wanting to work.
People on Reddit share their stories about how they don’t want to work anymore. Some are still in school, some are retired, and others have other reasons for not wanting to work.
We all have heard about the Great Resignation with people saying “enough is enough; I don’t want to go back to work.”
1. Burnout
Burnout is when an employee begins to feel exhausted and overwhelmed by their job. They do not want to be there anymore and it negatively impacts the happiness of both the individual and their work environment.
If you want to stop working, it is okay!
Just make sure you can still be financially independent.
2. Not enjoying your job
Many people wake up and say, “I don’t really want to do the work today.” If you are not enjoying your job, it is harder and harder to go in every day.
People don’t want to work because they feel like they’re working more than is necessary, or there’s no meaning behind their job anymore.
If you find yourself not enjoying your job, it might be time to leave. Many people experience dissatisfaction with their jobs and want to retire early.
Many times this is when people leave their jobs and find success is the best revenge.
3. Mental Health
Mental health issues can be caused by outside factors, such as stress and anxiety, and can lead to feelings of wanting to avoid work.
For many, the idea of going to work can feel overwhelming and lead to feelings of anxiety and dread. It is also essential to take a step back and assess the quality of your mental health.
If this is something you have been struggling with, it is important to think about why you are feeling this way and take steps to address it.
If this persists, it is important to seek professional help. Visiting a therapist or counselor can help you identify the root causes of your negative feelings and develop a plan to overcome them. In many cases, your workplace may even cover the cost of therapy, so you don’t have to worry about paying out-of-pocket.
This is one of the good excuses to miss work.
4. Lack of Interest
When you find yourself feeling like you don’t want to work anymore, it’s important to take some time to examine the reasons why and identify potential solutions.
It could be that you’ve been in the same job for a long time and need a change of scenery.
Maybe you’re feeling overwhelmed and undervalued by your current role.
Possibly you have other things that are taking president and you don’t have the same level of interest.
Whatever the source of your feelings, they need to be addressed.
5. Support System
Friends and family can be a great source of support, offering advice and understanding. However, if they do not believe in you, it can make it even harder to find motivation.
On top of that, if you have family obligations such as childcare, it can be difficult to make the time to work or even to access the necessary resources.
Talking to your loved ones about your feelings and concerns is a great first step in getting through this tough time.
One of these family emergency excuses could help you in a pinch.
6. Lack of Appreciation
It can be incredibly disheartening to work hard and not be appreciated.
It’s easy to become discouraged and feel like you don’t want to work anymore if you’re putting in the effort and not being recognized.
When this happens it’s important to remember that you are valuable and your work does matter. It’s also important to talk to someone about how you’re feeling, whether that be a friend, family member, or therapist.
You just want someone to say to you, “I appreciate you!”
7. Thinking of Career Change
If you find yourself in a position where you don’t want to work for weeks on end, it’s important to figure out why. Are you having a hard time at your current job or do you no longer wish to pursue a career? If it’s the latter, it can be freeing to consider all the possible career changes you can make.
Many people don’t want to work anymore because:
they don’t want to pursue a career in corporate America
tired of the same job they’ve been doing for years
don’t want to continue vying for raises, bonuses, or promotions
It’s okay to dream about something else, something fresh and different.
You may find yourself researching other opportunities to put your skillset to use.
9. More Interest in Hobby to Turn into Side Hustle
For many people, having a side hustle is a great way to make extra money, explore a passion, and turn a hobby into something productive and profitable.
If you find yourself no longer wanting to go to work and feeling more fulfilled in your hobbies, it may be time to pursue a side hustle.
You can monetize your hobby and create a side gig to give yourself a new source of income.
This will provide you with the freedom to pursue what you’re interested in and make a living from it. It can also give you the option to quit your job and explore other areas of your life.
10. Wanting to make money passively
Making money passively is a goal that many people desire, but it can be hard to turn into reality.
While it is possible to make money passively in the stock market, real estate, or a small business, one can also earn passive income by doing any type of side hustle.
It is better to find ways to make passive income from something you enjoy.
You need to figure out what should I do for a living that will make passive income.
How do you make a living if you don’t want to work?
If you don’t want to work, you still need to find a way to make a living.
Passive income is the most effective way of making money without working.
It allows you to work on your business or hobby full-time and then withdraw a certain amount every month that helps pay for all of your expenses, including food, rent/mortgage, etc.
So, your first step is to create a passive income source.
If you don’t, then don’t say, “I don’t want to do the work today.”
In fact, there are many good excuses to miss work.
Can I survive without working?
Well, that completely depends on your financial situation. (Since most people are not aware of where they stand financially, here are the Money Bliss Steps to help you.)
If you are lucky enough to be a trust fund baby with somebody else managing your money, you are likely fine and can survive without working.
However, if you are like most normal folk, then you may be able to survive for a little bit without working. But over time, it will catch up to you. Not working is not a long-term solution.
While you may be on unemployment and collecting unemployment benefits, or maybe even disability payments that are not enough to make ends meet. In most cities, you can survive in the short term without working. But in the long term, it is not going to work out for you.
If you are serious about not wanting to work, you need to find the FIRE movement, which means financial independence retire early.
That is a better term for not wanting to work anymore. When you want to quit the job and do something else in life, you have to do what is called FIRE.
5 Simple Steps To Quit the Job
To quit the job or the career path that you were in, you have to take steps ahead of time to make sure that your transition (financially) is as smooth as possible.
The biggest question is how can I make money if I don’t want to work ever.
You set aside money to take care of your obligations and bills while being able to live the life that you want to live. That means you have more types of income than just a paycheck.
These are the exact steps you need to take to quit the job. Obviously, it won’t happen overnight. But, you can see the light at the end of the tunnel.
1. Make an Exit Plan
First, you have to make a plan of how finances will work without a typical paycheck. You need to learn how to FI quickly.
In order to retire early or quit the job, you must be able to financially support yourself without a consistent income coming in from a regular paycheck.
Specifically, it means you need to find ways to make passive income. That could be in the stock market, real estate, small business, side hustle hobby, or driving for Uber. There are a variety of different ways to make money; it is just better to find ways to make money doing something you enjoy.
One of the things you will quickly realize is that to make money passively, you must have money on hand to invest. That is the “Catch 22” of why people get caught in the cycle of it being too difficult to change their financial position and just give up.
If you don’t like your job and you don’t want to work anymore, then you need the mindset that something is gonna change, you are gonna make it a reality.
It will be hard for a short period of time to save up the money necessary to build the steps to be able to quit working or FIRE, but you might be surprised how you can double $10k quickly when you put your mind to it.
Motivation is a great thing, especially given the right circumstances.
Related Answers:
2. Save Money
If you don’t want to work anymore, then you have to save money to cover your bills. Period.
There is no way to get around that situation.
Your friends and family are not going to pick up the slack just because you want to quit your job.
So, you have to find all of the possible ways to save money. A great place to start is with one of our money saving challenges.
Another great way to save more money is by changing your habits.
In order to “retire early,” you must save a majority of your income at an early age to gain the benefit of compounding early. If you are thinking, “Well shoot, I missed that bucket,” then don’t worry … now is better to start than waiting too long.
Things only look up from here!
3. Cut Expenses
You have to be able to live below your means.
If you’re not interested in your job or the career that you are currently in and you don’t want to work anymore, then you need to cut your expenses in order to save more money.
One of the wisest tricks of the FIRE community is becoming a thrifty person. You know when to spend money on quality items as well as you know when to save money on frivolous expenses.
4. Pick a date.
As with any smart financial goal, you need to put a deadline on when you want things to happen.
If you are not happy with your job and your depression isn’t worth it anymore, then you have to find a date to move on and do something else.
Obviously, you’ll need some of these FIRE calculators to learn how much you need to make your dream a reality.
that happen. Here are some of the best fire calculators that you can find, to learn, how much you need to quit your job.
5. Start Hustling
Let’s face it, 2020 changed the workplace as well as our priorities. Honestly, I think it was for the better. We all realize there is more to life than just the constant line of being busy.
In addition, many of us found the extra time that we can now put to work and start to make money.
It is easier to work when you have a target goal in mind of not working anymore. You must start saving money to put to work passively.
Below you will find ideas to help you search out the best serious ways to make more money. The last thing you want to do is learn what happens when you don’t save enough for retirement.
When You Don’t Want to Work Anymore
In this post, we answered the question of how can I make money if I don’t want to work.
The secret sauce is called passive income.
You must earn money on your investments. So, yes, now is a good time to invest in stocks.
There are many ways to make passive income; it could be in the swing trading the stock market, real estate, a business venture, a side hustle, or simply long-term investing.
Unless you are massively independently wealthy and part of the 1%, with millions of dollars that you do not know what to do with, then you will want to make some money on your nest egg that you create over time.
If you are saying, “I just want a life,” then stop waiting for the magic time for your retirement. You don’t have to wait until the retirement age of 65 years old.
You are in charge of your life and can make it happen… if you put your mind to it.
Source
Gallup. “What Is Employee Engagement and How Do You Improve It?” https://www.gallup.com/workplace/285674/improve-employee-engagement-workplace.aspx#:~:text=Based%20on%20over%2050%20years,in%20the%20%22engaged%22%20category. Accessed March 11, 2024.
Know someone else that needs this, too? Then, please share!!
Did the post resonate with you?
More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!
Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.
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Time freedom is absolutely liberating!
If you are not aware of the concept of what time freedom is, then you are completely missing out.
This is something that you absolutely need to have in your life.
You need to learn how to design your life around this concept of time and freedom.
In our society, it is looked upon favorably that you are constantly busy; we are supposed to be busier than we were before. It is an accolade, it is a reward; you are given a pat on the back for being busy.
You’re doing a “great job” of living a busy life. But, those are also the same people that are busy hating life and completely stressed out. Is that really how you want to live life?
Today, I am going to challenge you to jump on the time freedom bandwagon.
This past year, I underwent major surgery; one that took months to recover from. As a result, I had a lot of time to think (flat on my back) without a whole lot to do. No to-do list, no driving children, no cooking dinner, no lifting, no nothing. Since I was recovering from the surgery and unable to do a lot of things, I had a lot of time to think.
One thing stuck out clearly… I do not live my life how I desire.
The way I actually spent my time pre-surgery did not align with my values, ethics, or my long-term vision for my life. I was wasting my life away by living the life that others believe that I am supposed to live.
Then, I began designing the life that I want to live. And that starts with time freedom.
Intrigued? Well, you should be… This will be a game-changer for you.
What Does Time Freedom mean?
Time freedom is exactly what you think it would be… have the freedom and the time to live life like you want to live.
You get to call the shots.
You get to do things that you want to do.
You don’t have to do things you don’t want to do.
You control your time.
By choosing time freedom, it gives you the flexibility to enjoy the life that you want to live.
Possibilities include spending time with your family, working on projects that you have passions about, spending time on hobbies that you are passionate about, or volunteering with causes you believe in.
So many opportunities present themselves once you carve out what time freedom means to you.
Think about these questions to help you define time and freedom for you:
If I was given an extra hour each day, how would I spend it?
If I was given an extra day in the week, how would I spend that time?
What is holding me back from living the life of my dreams?
Am I strong enough and have the conviction to say time freedom is more important than how others say I should dictate my time?
If I die today, what would I regret about how I spent my time?
Once you answer some of these questions, you will have a greater chance of figuring out what tiny meant freedom means to you.
While the overall definition of time freedom is the same for all of us; each person will have their individualized approach and personalization to what time freedom means to them.
How to Achieve Time Freedom?
This is something critical for you to dedicate time to think about.
As I said earlier in this post, this is something that I pondered on for a while. And it wasn’t until a couple of months later, once the hard part of my recovery was behind me and I could actually start doing things again that time freedom became even more important to me.
I am stingy. I am choosy with how I am going to spend my time and with who I am going to spend my time.
Time here on Earth is short; it is a speck on the horizon.
So choose to live life passionately and enjoy the journey.
This process of how to achieve time freedom will be fine-tuned as you go through the process. You can spend 10 minutes and think about it, but you really have to dig deep and make really tough choices. More than likely involve your family and close friends in your decision.
You need to define what time freedom means to you and how you are going to achieve it and more specifically why it is important.
1. Evaluate Your Real Life
You need to figure out what you were currently doing and how you are actually spending your time. This means for at least one week, you need to write down every single thing that you do.
For example, if you have to go pick up the kids, even though you know it is a seven minute drive to and from your house and school. It does not actually take you seven minutes; build in bluffer blocks to chat with your friends, talk to their teachers after school, and the whole event of picking up your kids. It is going to be longer than seven minutes.
So, you need to time block every single thing out. That will give you an idea of exactly how long it takes you to get stuff done.
While I am a believer in 30 Minute Meals and I love meals that are quick. I’ll be honest, I may be able to cook a meal in 30 minutes, but there is no way that I am able to cook a meal and clean up in 30 minutes (at least I am honest)! As a result, I need to make time for an hour to cook and clean up dinner.
How does this relate to time freedom? You need to see how you ACTUALLY spend your time.
Once you see how you spend your time, you can evaluate your true life, not the life that you believe is happening in your head.
You get to evaluate how you actually spend your time.
You may notice things like, wow, I spent 45 minutes or 90 minutes scrolling on Facebook and Instagram, and only 10 minutes talking to my children after school.
That could be an eye-opener for you to evaluate your life, and figure out what time freedom means for you.
2. Design the Life That You Want
This is the fun part!
As you are going through the week tracking down every single thing that you do and how you spend your time, you get to start thinking and dreaming about how you would spend your time differently.
Figure out how would you live your life differently.
Now that you know that time freedom is a possibility in your life. You get to start designing the life that you choose.
In order to do this, you need to evaluate what are the things that matter to you most.
If you died today, what would you regret most? Just writing that brings tears to my eyes, but you never know what the future holds.
That is why time and freedom are so liberating. You get to make sure that you get to tell those around you that you love them. They are important, and their life is worthwhile.
This step of designing the life that you want to live will probably take the longest because, over time, you will refine things that were important to you and realized others actually were not that important as you thought.
Refining what type of life you want to live will take time; so, please do not limit this soul-searching process.
Focus on time freedom and what it will mean to you.
3. Take Control of Your Time
Take control of your time and enough of the “busy life.”
That is something of “busy” generations before. Going forward, you want to have space, flexibility, and freedom to live the life that you choose to live.
And that starts by taking control of your time.
Don’t let others dictate your life plan.
In advance, decide how and where you are going to spend your precious time. Block out times for rest, recuperation, reading, hanging out with the kids, working out, etc. Do not let whatever get into your blocked out time.
Do the same for your work time – the amount you get paid to work. I cannot stress this enough. If you are sick and tired of working 60 to 80 hours a week, yet you still do it, week after week, even though you were paid on a 40 hour a week salary that needs to stop today.
Enough is enough.
Stop being there for your employer and crumbling in your personal life.
You need to take control of your time and work is the number one thing that is a most for us (until you reach your money freedom) that we need to do, but it takes the most time out of your life.
If you are paid for 40 hours, then focus on getting your job done just as well in 40 hours, and not spend that extra 20 to 40 hours working overtime. You are not getting paid for overtime. And that doesn’t equate to your time freedom.
Enough is enough.
I know so many people that are tired and don’t want to work anymore because time freedom is more important to them than their paycheck and their sanity.
Start putting barriers in place – block your schedule. Define your working hours and stick to it. No logging in early and no checking emails before bed. You are in charge of your time.
You need to be more respectful of your wishes and your desires.
4. Drop the Things You Don’t Want
This one is hard for a lot of us because we feel like there is a mandatory checklist as we go through the life of things that we are supposed to do. And especially if you’re a mom, you know that you’re supposed to do “mommy activities” like you get a badge of honor.
By participating in something, even though it is not something that you want to do, you are wasting your time freedom
Instead, you need to drop the things that you don’t want to do, and choose the things that you do want to do.
It is not rocket science, but it is hard.
It is hard the first time that you say no to a commitment.
Declare to yourself… I am not going to do this presented opportunity because it gives me the freedom of time to choose something else.
That, my friends, is why you were reading this post! You need the okay that you deserve more in life than being stressed out and running from place to place.
You need to find this time freedom!
5. Focus on Your Time & Desires
This is the step that you need to find clarity and personalization on what time freedom works for means for you.
This is something that is going to become a part of your nature.
It will take time to grow into your new self. It is not a process that is going to happen overnight.
However, I can tell you after going through this process of finding time freedom in my life, I am the happiest person now. What I have in my life is because I am choosing that. And I’m very picky about what I will do and what I won’t do.
Focus on the areas of life that fill your bucket, that energizes you, that makes you just want to keep going. And drop the things that demoralize you, exhaust you, and make you feel worthless.
While you may not be able to flip this overnight to drop everything draining you and add everything that you want. It will be a process, and it will slowly happen over time.
Say no to that friend that every time you leave after lunch, you feel down and depressed because there isn’t much you can offer. She sucks the living daylights out of you.
Block the person on Facebook, who was causing all the controversies. It is not worth it.
You get to choose what is worth it.
That is what time meant freedom is all about.
Time Freedom vs. Financial Freedom
First, let’s look at what financial freedom means.
Ultimately, financial freedom means that you have the money and the resources to do what you please to do and do not have to worry about making a consistent income and how you will pay your bills.
Most people believe that they will never reach financial freedom because they do not have enough money saved. In reality, all it takes is just start saving and begin investing, and eventually, make progress to financial freedom.
If you are not saving at least 20% of your paycheck today, then financial independence is going to take that much longer.
Now, the question remains… how do time freedom and financial freedom correlate?
You are trading time for money.
Time > Money
You value your time over money.
And the good news is you can have both! You just have to figure out your priorities first.
The closer you are to reaching financial independence means you are closer to stop working for a paycheck. Then, you have the flexibility to do what you want to do when you want to do it. That means you aren’t working a nine to five job.
Not everybody reading this post right now can quit their job, walk away, and enjoy time freedom and financial freedom.
It sounds enticing, right? So, what are you going to do about that?
Make a plan.
Figure out what needs to happen financially, so you can find more time freedom in your life.
Sleep takes up one-third of our day, and studies have proven we should not sleep less than the recommended amount.
It’s work. Trading money for a paycheck.
The next thing that has to change is how much time you spend working.
You need to find ways to make more money fast or spend less than you make.
If you are determined to find more time freedom in your life, you will make it happen.
Do everything you possibly can to make as much money in that short season, so you have time flexibility going forward. You dedicate three years of your life to be able to years of time freedom. I believe that’s a good trade-off, and that’s what you need to think about and focus on.
You can still have time freedom without reaching financial independence. You just have to be careful about how you choose to spend your time outside of work.
What is Location Freedom?
Location freedom means the ability to live where ever you want because you want to.
There is nothing holding you down to a particular city, state, or country.
You have the freedom to choose where you reside – simple as that.
Unfortunately, for most of us to find that independence to have location freedom is very difficult because we feel the constraints that we have to stay working in our particular city, we need to stay close to family. There is a list of excuses not to become location independent.
Whereas, my friends over at Tuppennys Fireplace decided that they were willing to move to have the location freedom that they desired. They put in the time and effort to choose the location that they chose to live in.
While this may not be appealing to everybody, there is something appealing about being able to travel the world.
Being location independent, whether you are working or not working, may feel like a dream. But, you can actually make it a reality.
Are you Ready for Time Freedom in Your Life?
Well, we have reiterated that time freedom is the most amazing experience to have.
You may be terrified, and possibly even bored when you learn how time freedom changes your life.
With time freedom, you will have more time to spend on the things that you are passionate about, and less time on the things that suck you dry.
Day after day, you have the choice of how you choose to spend your time. That freedom is up to you to determine; as I have said, this is not an overnight process. This isn’t going to happen on a weekend.
It will take time to design the life that you want to live.
If you want to make drastic changes, then sit down over a weekend and really spend deep, quality time, thinking through this concept of time freedom. You will walk away a new person.
Most people will be jealous. Some people will hate you.
While true friends will stand beside you, and jump on the bandwagon to learn more about freedom of time.
Don’t care what other people think.
This is your life! You have one life to live. Live the best life that you can!
With time freedom in mind, you can design your life and truly understand what freedom of time will change you from the inside out.
If you are intrigued about time freedom, then here are the best time freedom books.
These books will help you build habits to find time in your life. Then, you can begin designing the life you want.
As an Amazon Associate and member of other affiliate programs, I earn from qualifying purchases.
Know someone else that needs this, too? Then, please share!!
Did the post resonate with you?
More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!
Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.
Inside: How to become financially independent? This is something you want to read. Don’t worry — there are steps you can take and strategies you can use!
One of the biggest struggles for most people is how to become financially independent.
There are many different ways you can be more successful in your finances, but there really isn’t one perfect answer. It’s important to think about what your goals are and then develop a strategy that will help you achieve them.
However, you may feel lost on what to do now.
There is no one way to make a living and there are endless ways to do it.
The concept of becoming financially independent may feel impossible to reach.
But, I am here to tell you that becoming financially independent is easier than you think.
I want you to join me on an adventure where we explore how being financially independent doesn’t have to be a huge sacrifice in your life. Just imagine what you could do with all that free time, money, and energy!
In this post, I am going to break down how being financially independent can actually create an amazing way that you live your life.
Financial freedom is the reason for your desire to be financially independent.
What is Financial Independence?
Financial independence is when a person or family has achieved a high level of financial stability and money does not control their lives.
You are working towards financial freedom that is when your assets have reached a point in which you estimate they will cover all of your expenses for the remaining part of your life. There is no need to work unless you desire.
These terms are heavily intertwined in their meanings.
This is something most people haven’t achieved as they are constantly living paycheck to paycheck.
Overall, by becoming financially independent, you have more choices in life.
We will discuss how it’s possible to create a generous and financially independent lifestyle while also staying grounded in your values.
How to Become Financially Independent
Financial independence is the idea that you can be completely free from money becoming a factor in your life.
In order to achieve this, you must find ways to reduce debt while increasing retirement contributions and having money on hand for emergencies.
There are two simple steps to achieving financial independence.
1. What you Want to Do with your Life
This one may seem overwhelming for most people to think about. You are working to the grind just to make money and focused on how much I make a year.
Everyone dreams of living a financially free life, where honesty isn’t needed, emotional attachments aren’t needed, and money can just come into your bank account without you spending a single cent making it.
But creating such a life isn’t easy; to make it happen, the first step is to take stock of what you want to do in your life and find the ways to obtain the following:
Your most fulfilled you have ever been, whether it’s artistic or financial. The freedom of not needing to check in with anyone, not feeling guilty about spending money you worked for.
Your time to do the things you love, whether it’s with family or friends or travel
The best relationships that are healthy and supportive in your life
The best physical health and emotional well-being that you can find.
By making those things your priorities, then you start to design the life you want.
The concept of time freedom is something that will become more important to you as you move from becoming financially independent to ultimately reaching financial freedom.
To create a life of financial independence, it is important to take stock of what one wants in their life and find ways to obtain that.
2. Matching your Money to Desires
You must take personal responsibility for your own finances.
If you don’t make the changes to reach your financial goals, then you will be stuck on a hamster wheel.
For example, debt will hold you back. Period. Until you finally get out of debt, you are a slave to money.
Another example that happens many times is out-of-control spending. The inability to spend less money than you make.
There are many ways for people to become financially independent. You have to craft a plan to match your money to the life you desire.
One way is by living within your means, another is to start making money on the side.
Your lifestyle must match your desires and what you can truly afford.
These two steps are essential in achieving financial independence.
Ways to Become to Reach Financial Independence
Financial independence is the idea that you can achieve financial freedom and continue to work or stay home without worry. Achieving this goal starts with savings and reducing debt, as well as monitoring progress as you work toward your goals.
If you want to learn how to become financially independent in 5 years, then this is exactly what you need to do today.
Making it happen will take hard work but with positivity and willpower, you’ll get there!
1. Know Where You Stand Financially
The first step towards financial independence is to find out where you stand right now (spoiler alert: it might not be where you think it is).
If they are not at zero savings how were they able to get there?
This means you need to understand your net worth.
You determine your net worth by subtracting all of your debts from your assets.
If you have a significant amount of debt, then it is likely you will be starting with a negative net worth. That is okay! You can dig yourself out.
To become financially free, you need to reach a magic number with your liquid net worth to quit working and retire early.
2. Income is Less than Expenses
First, you need to write out your income.
Next, add up all of your monthly expenses.
Take your income minus your expenses.
If your expenses are greater than your income, you will never become financially free and will live stuck in a debt trap.
If your income is higher than your expenses, that is great news! Make sure you start saving money for your future self.
3. Budget
Budgeting is a core principle of financial wellness. Budgeting your money, using the snowball method, and saving for emergencies are all keys to becoming financially independent.
A budget is a tool used to help organize finances and plan for the future.
It can be as simple as writing down what you spend on food each week or as complex as creating a full financial picture of your life.
To create a budget, decide how much income you want to generate in one month and compare that amount to what you currently spend.
Start by listing all your income and expenses for at least the last six months. Then make a plan to tackle any problem areas.
4. Reduce Debt to become Financially Independent
Financial independence is when you have paid off all your debts and are living below your means. This gives you the freedom to do whatever you want, knowing that you don’t need anyone else’s help and are not a slave to debt.
Debtors should find ways to pay off their debt and avoid creating new debt in order to become financially independent.
Pay off your credit card balance before interest or late fees are charged
Avoid taking on any additional charges by using debit cards for purchases
Borrowers should build debt payments into the monthly budget
Debt is inescapable: Drowning and leaning on others until you pay off your debt for good.
5. Save Money
Whether you’re 26 or 66, saving is an integral part of becoming financially free.
This is how you become financially stable.
It’s never too late to start saving money or learn how to invest it in different places.
Enjoy one of these fun money saving challenges!
6. Understand Your Needs & Wants
Achieving financial independence is about creating a life with only needs and wants. It’s about getting rid of the things that make us feel inadequate or less important, like debt, credit cards, and wasting time on social media.
Needs are things like food, rent/mortgage, utilities, transportation, and clothing.
Wants are all the things that make us feel like we’re keeping up with the Joneses’ or how we spend without thinking.
Most people do not have a clue on what is a need and what is a want. Most wants fall into fun spending. A no spend challenge is great for discovering what is truly a need!
7. Spend Less Than you Make
Financial independence is the ability to create a generous, balanced life without relying on others for financial support. That cannot happen if your expenses are greater than your income.
It is about spending less than you make and saving the extra money from your budget at the end of every month.
Track your spending for a few months, then analyze it to find out where you can cut back or save more money.
Look at how can you cut expenses. This could be as simple as cutting back or drastic ways to cut expenses.
8. Create a Rainy Day Fund
Financial independence is a term used to describe a person who has enough wealth that they do not have to work for money. A rainy day fund will help you to achieve this.
A rainy day fund takes your emergency fund one big step further.
Experts agree that a rainy day fund should have at least 6 months’ worth of expenses saved up in case life goes south.
Ideally, money should be pulled from the same day you receive your paycheck, so it never even touches your hands, avoiding temptation entirely.
9. Set Goals
Financial independence is a measure of personal finance that includes three components: financial goals, financial milestones, and knowing what you want your money to be used for.
You must set smart financial goals to become financially free.
Goals may depend on age and where you are in life. You must get clear about your vision for the future.
Ask yourself questions like:
How much should you have in your bank account?
What lifestyle do you want to enjoy? When is it achieved?
What your net worth should be.
Figure out what you need to do to reach your money goals.
10. Lifelong Learner
No matter how much you know, there is always room for more knowledge
Money, investments, and new technologies allow the possibility to grow your money exponentially. With a rich understanding of fiscal responsibility and a desire to progress, there are many ways to find financial liberation.
That happens by investing in learning about money, finances, and investing. Here are the best finance books I recommend.
Fastest Way to Become Financially Independent
It’s never too late to start investing in your financial independence. If you wait until the last minute, it will be difficult for you to make significant progress on your plan and stay on track with what needs to happen first.
You need to find ways to diversify your income and make more money.
That is the key for those who reach financial independence in 5 years or less.
Diversifying your income will help balance out how much money you make. You know the saying, “Don’t put all of your eggs in one basket;” the same holds true for your income.
This could be starting a side hustle that turns into a small business. Or freelancing your services. Even more important, learning how to make passive income in the stock market.
Stick around Money Bliss… We have lots of ways for you to make more money.
The Secret to Becoming Financially Independent
The secret to becoming financially independent is to take on one small financial challenge that will open up your eyes and help you understand the world of investing.
Investing is when you put money into stocks, bonds, or other low-risk investments that generate income without any work on your part. It’s called “passive” income because it happens without your involvement.
Investing in the stock market is one of the most common ways to invest, but there are other choices you might want to consider too. You can invest in bonds or look at real estate.
This is the secret of those who already have become financially independent.
How to Become Financially Independent from Parents
More than half of millennials over 21 are receiving financial help from a parent or guardian. However, many young people are beginning to realize that they can become financially independent from their parents by developing their own skills and connections in the workforce.
– Achieving personal independence is not always easy but does come with some benefits.
– It gives you more control over your life and allows you to pursue passions without feeling weighed down by debt or other obligations.
But, parents should also work on changes to help their children. For example, they can focus on showing proper money management skills and talking through financial decisions.
That way when high schoolers or young adults are ready to make their own financial decisions they have a strong foundation of knowledge of money.
How can young adults become financially independent?
Young adults are often advised to focus on building wealth in order to become financially independent.
Young adults must learn how to track expenses and make a budget.
Saving money needs to be a priority for them, so sharing housing with friends will lower expenses.
Young adults should also take into consideration their future income potential and consider whether or not they plan on continuing higher education after graduation.
What parents can do to encourage financial independence
Parents should encourage their children to become financially independent as it will benefit them in the future.
If parents always step in and solve problems, they may be preventing their kids from learning important skills that would allow them to meet their needs while putting off wants for the future.
This will only lengthen the amount of time needed to reach financial independence and this will eventually prevent an individual from reaching FI.
As parents, even if you have not been wise with money, teach those valuable lessons to your kids. Then, they can learn from your mistakes and change the trajectory of their lives.
Start Working toward your Financial Independence Today
Millions of Americans are financially dependent on someone else.
There is a lot to be said about financial independence and the perks that come along with it.
Do you want to avoid having a life of financial worry and debt?
There are numerous ways to become financially independent. Above, we have shared how to FI, ways to make financial independence happen faster, and the secrets to success.
Just to recap…
Budgeting can help you make sure you have enough income to achieve your financial goals.
Start by looking at areas of life that would be easiest for you to change, like your spending habits. The more you change how you spend, the easier it will be for that money to go farther and last longer.
If saving is another area that’s difficult for you, you might want to think about how much your spending is and then try to save that amount each week. Setting aside a specific chunk of money will make saving more manageable and help you meet the goal quicker.
Creating a generous lifestyle that includes leisure time and spending money on experiences over material things
Using the power of compounding interest
Living within your means.
Build wealth through investing in stocks, bonds, mutual funds, and other forms of investments.
In the long run, these principles will help you focus on what matters most to you so that your life is more meaningful and rewarding in general.
Now, learn how to become a millionaire with no money.
Know someone else that needs this, too? Then, please share!!
Did the post resonate with you?
More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!
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Are you struggling to build your wealth so that you can live the life you want?
The problem may not be what you think it is.
If you are just working hard to earn more money, that is not enough.
You must also take the time to work on clearing money blocks within your brain.
The problem may not be what you think it is.
It is no secret that money blocks are abundance blocks.
How many times have you thought about how much cash you would need to get rid of your current financial situation?
If not, then it’s time to explore the fastest way out of this dilemma: removing all financial blocks.
Money blocks are on my mind today because–as any woman who wants to have a baby will tell you–the amount of time, money, and energy required to conceive, raise a child or even just get pregnant usually ends up being more than what one would typically invest in creative endeavors.
It’s important that we understand the blocks within us so that we can clear them out before they manifest into physical manifestations in our bodies.
There are infinite possibilities for new experiences–and with these opportunities come new ways to express ourselves creatively, spiritually, emotionally, or materially through whatever medium we choose.
The blocks for abundance are the most insidious because they are completely invisible, making them tough to spot.
You must learn how these blocks manifest in our lives and what can be done about them. Today, you will find some practical steps you could take to remove these blockages from your life if you find yourself struggling with this issue!
Enough of dealing with these painful and frustrating obstacles, let’s take simple steps on how to remove money blocks with ease.
What are Money Blocks?
Money blocks are negative subconscious beliefs about money that limit one from achieving conscious desires.
Money blocks are the result of years of subtle and sometimes not so subtle messages we’ve received about how to be “successful” in life.
They can play a role in limiting our personal abundance as well as others’. For example, if you believe that money is bad or that it will cause you problems, then you may find yourself reacting negatively whenever your income increases.
What are money beliefs?
A person with money blocks may experience feelings of guilt about spending cash, or they may think that money is the source of their problems. When someone has a lot of these beliefs, it can be difficult for them to become independently wealthy because they are so limited by their subconscious thoughts and behaviors.
The concept of money blocks is fairly new. The term was coined in the early 2000’s, and describes a mindset that people have when managing their finances.
Money blocks are usually caused by fear or anxiety stemming from negative thoughts about money and how much we need to invest for our future needs.
Your money blocks hold up your abundance and ability to become financially free.
The good news is the more you work on changing the behaviors, the easier it will be to remove them.
Money is 80% behavior and 20% knowledge.
It’s important for people to understand how they can change their behavior because there is a lot of power in making better choices with regards to what we spend our time and energy on each day – especially when it comes down to money!
How do Know if you have a Money Block?
If you are wondering, what are some limiting beliefs about finances. Then, you probably struggle from a money block.
It may be something like “I won’t let myself do anything unless I have enough money,” or “I won’t allow myself to be vulnerable.” Such blocks can cause you to take on debt or make the wrong decisions, which is not beneficial.
If you have a money block, it is because you are holding onto an idea that does not serve your purpose.
There is an energy around money that often causes blockages within the body. It can be difficult to determine if you have a money block because there are so many different types of blocks. The most common type of money block is the abundance block, which occurs when too much energy and focus is placed on one area of life instead of others.
The best way to know if you have a money block is by taking time to meditate or do yoga for five minutes daily with your eyes closed.
If you feel uncomfortable or notice that the energy around money keeps changing, then it is a good sign that you have an abundance block.
There are many things that can manifest as a money block. Therefore, it is important to know what your personal money blocks might be so you can release them and move forward with financial abundance.
How do you break through money blocks?
One way to break through the money blocks is by identifying problems with your current thought process.
There is a wide variety of ways to break through money blocks. One way is to start your own business and work hard until you make enough money that the blocks are no longer an issue. Another way is to focus on a different area of your life. You could try being part of a community where there are more opportunities for you to make money.
You have to follow through on the process.
What Happens if I Don’t Clear Money Blocks?
You cannot make more income without having abundance blocks.
Until you shift your relationship with money, you will continue to create the same outcomes. This is because you conditioned yourself to believe the limits on the possibility of making or receiving income.
It is important that you recognize these financial blockages! Then, you can understand what they are doing in order to break them down and release the energy tied up in them.
Abundance blocks happen when we believe certain things and our reality reflects those beliefs. If you have a money block, your relationship with abundance is out of balance.
In order to get rid of the blocks in the system, it’s important to identify them and understand why they exist.
Money Block Quiz
Many of us have obstructions around money that prevent them from reaching their goals, but there is one easy way to see if you have a money block.
Quickly reveal whether or not your energy is blocked by this area of your life. Then, you can come back and figure out removing money jams from your life.
Simply takethe Money Blocks quiz.
The best way to identify if there’s a specific thing in your life or mindset that’s causing stress around finances would be to ask yourself these questions:
Section 1 – Your Desires in Life
Create a list of all the things you want.
List 5-10 specific things on this list.
Look at how much time or effort these items require.
Look at how much money you need to achieve these items.
Put a dollar amount next to each item.
Answer Key – If the time or effort required is more than what you make in one year, then there’s your issue. You have a money block.
Section 2 – Spending your Time
What am I not spending enough time doing?
Did something happen recently where my emotions were particularly high?
Do I desire time freedom?
Answer Key – If the answer is yes, then you probably have a subconscious money block.
Section 3 – Triggers around Money
What are your financial failures?
What are your emotional triggers for spending cash without realizing it?
How did your parents relate to money?
How does society teach you about money and status?
Answer Key – Everyone’s answers will be personal to your background, upbringing, thoughts, and experiences. The key is to recognize money obstructions and breakthroughs can slowly happen.
The problem with being broke (or feeling broke) is that it leaves you feeling like there’s never enough of what you need to get ahead, but the good news is – if you want to break through your money barricades, it’s actually pretty easy.
Top 10 List of Money Blocks
Money mindset jams are different for everyone, but there are some common types.
For example, if you find yourself feeling anxious or stressed when thinking about financial-related topics like paying off debt, it could be because you’re subconsciously avoiding something that will help your personal finance situation in the long run.
Let’s learn how to identify 10 common money blocks.
1. Fear:
This is one of the most common stonewalls that you can experience and it can affect how you make decisions about your future.
Fear is a natural emotion, which is caused by the concept that money will cause you to act in certain ways. Thus, not allowing you to take risks and put yourself in danger.
Fear is often an emotion that comes with money, but this does not have to be the case. There is a lot of wisdom in being able to separate one’s emotions from financial decision-making.
For example, if you feel fear when you’re in a position to make an investment, then that could be because of your limiting beliefs.
2. Money Avoidance
Money avoidance happens in one of two ways.
The first way of money avoidance refers to the practice of intentionally decreasing the amount of money one spends. Money avoidance is achieved through various methods, such as not spending any money for a set period of time, using alternative currencies, or just living without money.
The second way of money avoidance is looking the other direction for anything that has to do with money. Money avoiders are people who have less money and a lower net worth than non-avoiders.
Money thoughts are so bad, so they sabotage themselves in an unconscious effort to have as little of it as possible.
You want to enjoy living life with intention.
3. Regret:
A money block of regret is guilt that is inflicted on oneself in the form of an arbitrary amount of money.
If you find yourself feeling regretful or sad about something that happened in the past, then that may be a sign that you’re letting the past define your future.
Some examples include:
The regret individuals may feel after spending cash on things they later find were not worth the cost.
A person who has accumulated a debt that they cannot afford to repay.
Regretting the potential opportunities you missed to make more money.
It is often difficult to admit this feeling because it often involves acknowledging that one is not living up to their own standards.
4. Money is Evil:
Money is a symbol of power and control. It gives people the ability to dictate what they need or want, but it also limits individual freedom and diversity by instilling fear in others about being unable to meet their basic needs.
Money is an important tool to be used for good or evil depending on how it is handled.
There are many ways to express your individuality without the use of money.
5. Earning Money is Hard:
Another money chokepoint is the perception of the difficulty one has in earning income. All because of puritanical values about how to earn or spend money.
In order to earn money, we need to move away from the idea of earning and deserving. One way is through creative endeavors such as finding something you enjoy while you make extra income.
Earning money is harder than expected, but it’s not impossible. You can make a lot of cash- both online and offline- with the right skill set and a bit of hard work.
6. Laziness:
Many people despite knowing what is necessary for their financial well-being are stuck because they will not do what is necessary to move to the next level.
When our subconscious mind allows us to create a specific mindset and belief around money, it can have a detrimental effect on our relationships with other people and ourselves.
If you find yourself feeling lazy or unmotivated about doing anything related to money, it might be because you feel like there’s not enough time or you are too afraid to try.
7. Money Status
Money status is the state of a person’s bank account balance, and specifically their net worth. Many people relate their money status to how they feel about their financial situation rather than the reality.
People with money status scripts believe their net worth determines their self-worth.
People may overspend in an attempt to convince others they’re financially successful.
This is often seen with those who are unemployed and trying not to look like it. On the flip side is those who have gained some wealth but want their friends and family members to think it’s even greater than what the reality is.
Is money everything?
8. Debt:
If you find yourself feeling anxious or stressed when thinking about money-related topics like paying off debt, it could be because you’re subconsciously avoiding something that will help you to prosper.
Paying off debt is a huge financial milestone most everyone will experience in their money journey.
You have to determine why you are stopping yourself from the possibility of getting out of out debt.
9. Money Worship
Money worship is a type of idolatry, which can become addictive and destructive for many people.
Any type of money worship can have negative effects on the lives of those who practice it, as well as those around them. Common signs of money worship include hoarding, guilt about spending money, and anxiety over not having enough money.
Money worshippers believe that money will solve all their problems and bring happiness, which often leads them into financial ruin.
In short, money worship is the belief that you need more and more money to live a happy life. They also believe that they cannot have enough because they will never be able to afford all the things in their list of wants.
10. I’m Always Broke
This is always questioned by people who are struggling financially.
Since everyone can be rich, many people mistakenly believe those money impediments are the only type of abundance block that exists. They actually think they are incapable of breaking the I’m broke cycle and will never find contentment.
Meanwhile, scarcity blocks can dictate how much money they make no matter how hard they try. You are stuck in the mindset of being constantly poor.
How to Remove a Money Block
Money blocks are a common obstacle for anyone trying to make progress in their life.
In order to learn how to overcome these blocks, you need to identify what is stopping you from making progress.Then, take immediate action to overcome these blocks.
Money mindset will thwart your progress and are common problems that many people encounter.
They happen when you feel stuck in a situation because of your feelings about money, or your past experiences with money.
This is how do I stop money hindrances…
Step #1 – Uncover the Subconscious Mind
The subconscious is the part of the mind responsible for processing information and memories that are not currently being processed by conscious awareness. Also, it is the memories that remain after the conscious mind has processed the information.
The subconscious mind is the part of your brain that stores patterns and programs. These thoughts are created by society, from parental programming, and societal perceptions of what you can or cannot do.
You are unconsciously creating your own self-fulfilling prophecy.
This means you will continue to create the same outcomes until you shift your relationship with money.
There are different ways for shifting this relationship, such as through meditation or asking yourself what you want instead of what you don’t want.
Action Step: Write a list of the money blocks you struggle the most with and the factors that drive them. Before you make a financial decision, see if your money blocks are driving your thinking.
Step # 2 – Become Aware
Awareness is one of the biggest challenges that we face. You are probably not aware of what’s happening and so they don’t do anything about it.
Awareness is crucial to long term financial success.
The most difficult part of finding your limiting beliefs is simply noticing they are there.
You need to be really honest with yourself.
When you are aware of what is happening, the root of the problem will become clearer and easier to address.
In order to create a reality that is in line with what you expect, awareness is key.
Action Step: Before you make a purchase, think about the real reason you are acting in this way. Keep a notebook of blocks you come across and how you dealt with them.
Step #3 – Reframe Your Beliefs
Money blocks are beliefs that prevent you from having the things that you want. In order to change this, you must reframe your thoughts.
Reframing means rethinking an idea, concept, or belief.
It is a cognitive process that changes the way you view something so that it fits better with your current beliefs. This allows for a more holistic perspective that is not bound by your subconscious mind or whatever you have been taught.
Reframe your beliefs by looking at them objectively and seeing where they come from.
When you have a money block, it can be difficult to see yourself as deserving of certain things because your limiting belief may say otherwise. Reframing your beliefs is key to accepting abundance.
Beliefs are just ideas in your head that aren’t true.
Action Step: You can choose to believe something or not; it’s up to you! Belief is only a thought, so you can use this power of belief to clear away money blocks.
Why Release your Money Blocks
Releasing your money blocks is a process that many people don’t think about.
It is not just releasing the blocks in one specific area, but releasing them throughout your entire being. It’s about releasing the blocks that are holding you back from your full potential and taking all of the money blocks out of your life.
It is very important to learn how to remove your money blocks. Then, you can actually move on with the game.
To remove a money block, close your eyes and focus on your breath for five minutes. Then, visualize all of the excess energy being removed from your body with your breath.
Money blocks are common in our lives, but can be removed with active awareness.
Write down your money blocks on tiny little pieces of paper to act as reminders that there is more abundance than we realize and will encourage us to take action towards achieving financial freedom.
The Abundance View of Money
Money is a means to an end. It should not give you meaning in life. In fact, it is a tool of motivation for achieving your goals and dreams.
Money can a good thing.
Money can buy comfort and security. However, some people have the wrong mindset of worshiping which derives from their desire for material wealth.
Throughout our lives, we are all taught to fear abundance.
Here are the most common ways in which this is taught:
Parents tell their children not to talk about money.
Never mentioning how much they make or spend.
Teachers who avoid talking about success.
Not allowing failures because it is not fair for students today.
People who thrive say they are broke.
These thoughts are often subconsciously triggered by our society and the messages that we have been taught throughout our lives.
This is why talking about money can be so difficult for some people!
You are afraid of the word “abundance.”
By understanding this concept, you will begin to better identify when your mind has an abundance block being triggered in relation to your personal finances or business plans.
In order to remove abundance blocks, it is important to understand what and where they stem from.
Learn the 10 secrets to gaining personal and financial freedom for you and your family, from two top marketing experts and entrepreneurs. Start to redefine what is possible in your life!
This book will help you build confidence, shift your mindset, and learn the tools to take control of your life and start on a path toward your own definition of freedom.
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This is the #1 personal finance book I recommend all the time.
It is simple enough for anyone to comprehend. Plus, life changing for anyone’s personal finance situation.
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This book is life changing. You can accomplish things in a much shorter time if you put your mind to it. Works for me, so I know it will help you.
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This is an old classic personal finance book. While, yes, some of it is outdated. There are some sections that are timeless. If you are trying to break out of living paycheck to paycheck, getting out of debt, and changing your family’s history with money, then you need to read this book for a change in money mindset.
Photo Credit:
www.amazon.com
Be prepared for what it takes to become set for life. There is more to life than money and you need to learn your dream. But, it all starts with your mindset.
Ready for Releasing Money Blocks?
Money blocks are negative beliefs about money.
Sometimes, these beliefs cause you to feel like you don’t have enough or that what’s happening in your life is not good enough because of the financial situation you’re in.
There are plenty of causes financial blockages.
It doesn’t matter how much money someone has; they can always choose something new and get it if they make a conscious effort to see things differently.
Money is a topic that can be difficult to talk about.
Sometimes, people get embarrassed by the fact that they don’t know how much money they have, or they’re worried about not being respectful by the amount of money they have.
Remember…When you have money blocks, it is time to reframe your beliefs. You can use the power of positive money affirmations and meditation to clear these blocks.
Today, we offered tips on what you can do in order to move forward with your financial goals, including breaking the myths that surround money-related topics.
Know someone else that needs this, too? Then, please share!!
Did the post resonate with you?
More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!
Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.
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Living stingy is easy!
Now, don’t get me wrong – this isn’t for everyone.
It takes a certain type of person to be able to go without and not feel deprived. But if you can handle it, living stingy is the way I recommend going because it has allowed me much more freedom and saved me a lot of money.
Saving money is a skill.
I’m not talking about saving for your retirement, buying a house, or funding the honeymoon of your dreams. I’m talking about making small changes in our day-to-day routine that can add up to big savings each month and over time.
Whether you’re just starting out with these money habits or already living them, read this post and begin to change your daily habits.
Many times we look at living stingy as being a frugal jerk.
However, by living stingy, you are looking at the overall picture – financial, resourceful, and creative with your money.
You will learn all you need to know in order for you to start living stingy today!
In this post, we will explore why living stingy can be better than you could ever imagine and how simple habit change leads to enduring happiness.
What is Living Stingy?
Living stingy is a lifestyle that encourages spending less than you earn.
The meaning of living stingy can help people to save more money, achieve financial independence, and have more time to spend with loved ones.
Now, that is something everyone needs in their lives!
In order to live stingily, it is important to focus on delaying instant gratification and staying on a tight budget. This means that you need to set goals in terms of what you want your money spent for in the future.
Understandably, how to live stingily is different for each person. For some, it may mean penny-pinching and for others cutting out non-essential items such as takeaway or eating out too frequently.
In order to live a life of financial freedom and satisfaction, you must find your personal meaning behind sacrifice that works with your lifestyle choices.
The term “living stingy” is a bit of an oxymoron. It’s not about being poor or depriving yourself, but instead, it means cutting out non-essentials such as takeaway and eating out in order to save money for the future.
Why A Life of Living Stingy?
Living stingy is a lifestyle that promotes frugal living. It is not about denying yourself anything that you want or need, but rather it is about changing your mindset. Speficially, learning that the small things in life are all that counts.
Living stingy is not about being miserly, but rather about living within your means and making financial goals for yourself.
Most people live beyond their means and are in debt which leads to stress, unhappiness, and other problems. Living stingy can help you avoid these issues by bringing balance into your life.
Pros of Living Stingy
Typically, these are the benefits of living stingy.
Being happy with what you have
Avoiding spending more than needed
Managing money well
Spending time wisely on what’s important
Lower cost of living
Less stress
Lack of materialism
Reduce waste in the environment
Save money
Cons of Living Stingy
For many, living stingy sounds unappealing for these reasons.
Feel like you are unable to afford anything
Friends who do not agree with your lifestyle
Lose motivation to earn more money
Self-sabotage by not earning enough money
Assume you can keep this level of expenses forever
The majority of the time, living a stingy life is actually not as bad as it seems.
Although the list of benefits of a stingy life seems like a good idea to live a stingy life, you have to ways the many pros and cons that come along with this type of lifestyle.
How to Live Stingy
By living stingy, it is amazing what living this way will do for your financial success.
That is reason enough to go ahead and explore this type of lifestyle.
Step #1 – Find your Financial Goals
It is important to have goals in order for you to know what you are working towards.
Also, it is important that your goals are realistic so that the process of reaching them will be easier.
Goals should be specific and measurable, such as saving $1,000 in a month or getting your house paid off within 10 years.
Possible Financial Goals:
Get out of Student Loan Debt
Start the Path to Financial Freedom
Pay off Credit Card
Feed Savings Account Goals
Buy a House
Build an Emergency Fund
Save 10K in a year challenge
You must identify your financial goals and the time frame to accomplish them. Learn more smart financial goals to accomplish.
Step #2 – Budget for your Lifestyle
When you are starting out, it’s important to have a budget for your lifestyle in order to live comfortably. This can be anything from how much money you need for food and clothes every month to how much you can afford to contribute to your retirement fund.
Making a budget is an important part of achieving your goals.
It keeps you from wasting money on unnecessary items!
It is important to budget for what you need and want in life, as you should spend money on things that align with your values.
To help you achieve this, you can use one of the best budgeting apps to track every dollar of income and expenses. This will help you know how much cash flow you have left at the end of each month.
Step #3 – Cut Expenses
Cutting unnecessary expenses can help you save money and live your life the way you want to.
You must reevaluate your daily routine by identifying what needs are necessary for each day, then making a budget that accommodates them all. Then, cut out the excess.
There are a lot of ways that you can reduce your bills. You can find what is costing you the most and cut it out, or automate some tasks so that they happen automatically every month.
Below, we will have many living stingy tips to help you out.
Step #4 – Make More Money Than You Spend
The goal of living stingy is to make more money than what you spend. Rather than the flip side (that most people do), which is spending more money and not making any extra cash to cover the difference.
When you spend an unnecessarily large amount of money, many of your funds will be put towards things that do not allow for a wide range of choices.
By living below your means, you will be able to prioritize your money for personal events like anniversaries or birthdays instead of spending excessively on non-essential purchases.
Learn more about living below your means.
Step # 5- Increase Your Income
There are many things that you can do to increase your income.
Here are some examples:
Start to increase your income by thinking about how you can turn a side hustle into a long-term opportunity.
You can increase your income on the side while maintaining your day job. Find ways to make money now.
Step # 6 – Incorporate Minimalism into your Lifestyle
Minimalism is the pursuit of existence with the fewest amount of things necessary to achieve the desired result of living with less.
Moreover, the biggest benefit to minimalism is that it is a trendy idea that more people agree with than living stingy.
Minimalists believe that consumption, owning things, and acquiring “stuff” leads to an overabundance of things in one’s life. In addition, you are able to save money quickly.
Step # 7 – Save Money on Purchases
Saving money on purchases is a popular topic and there are many ways to do it.
One way is to only buy things that you really need and you know they will last.
Another way is to wait until they go on sale or buy them at a discount. Then, wait for things to go on sale again.
Savings on unnecessary purchases is the first step to financial freedom.
If you’re looking to save money in your day-to-day life, apps like Ibotta and Rakuten are a great way to do that. These apps allow you to find the lowest price possible for products or give you cash back just for making a purchase.
Step #8 – Sell Items you Do Not Use
Selling items you do not use is a way of getting rid of things that are taking up space in your house or collecting dust. Also, it is helpful for those who want to buy something but can’t afford it.
Plus it is a great way to make some extra money on the side without actually having to work for it.
By selling your unwanted household items rather than disposing of them, you will live a more waste-free life while saving money too!
Not sure you like the idea… Check out Flea Market Flippers making $100k a year!
Step #9 – Be Stingy with your Time
To be stingy with your time is to be up-to-date on important tasks and not spend too much time on some other, less important task.
Too many times you are always busy and never have time to do what you love. When you are in this situation, it is easy to get caught up in doing things that don’t really matter in the grand scheme of things.
It is important to be mindful of where you spend your time so you can enjoy life more and achieve your financial goals.
You can waste a lot of time by scrolling on the phone or watching Netflix and chilling rather than doing actual work.
While, it is important not to over-commit yourself, but also make sure you’re enjoying life too! Understand the true meaning of time freedom.
Step #10 – Create an Action Plan
An action plan is a list of tasks that are steps to success. It can be as long or short as you want, but it should include things to start living stingy and enjoy your life more.
If you have specific financial goals, ensure you are budgeting appropriately. Even if your goal is to save money with a certain amount of time, it is important that you take the necessary steps in order to achieve this goal.
Create an action plan with milestones so that when each milestone is reached it can be celebrated!
Unfortunately, too many people have grand ideas. But, they never put them into action. Thus, you are left with another month or year that has gone by with no changes.
Tips to Living Stingy and Save Money
Living stingy means spending less than you earn and saving your money, but it is not easy to do for some people.
It is important to understand how when living stingy it can mean to take the plunge into financial independence.
Remember, living stingy is a term that describes the act of living with frugality and saving money. There are many ways to live stingy, and these tips will help you start on your journey to achieve financial goals.
Reduce your living expenses: This is the first thing you should do to save money because it will reduce your stress as well as give you more time to figure out what you want your next move to be.
Stop buying processed food: I am not saying that all fast food and microwavable meals are terrible, but it’s not the best thing to be eating on a regular basis. Plus they are more expensive!
Turn off your cable: You can go online and watch most of what you want for free, so why would you pay for it. Start by cutting out one nonessential expense from your budget every month.
There is a reason for shopping: Don’t go shopping just because you’re bored or hungry.
Buy discounted gift cards: Discounted gift cards are a way to buy gift cards at a discounted price. The discounts on these discount gift cards can range from 5% to 50%.
Learn some DIY projects: A DIY project might be anything from making your own signature cocktail, to building a deck on your house, to creating new recipes in the kitchen. It can also include things like building a garden or crafting your own furniture. Think of things you need to learn to do yourself to save money.
Find a deal: In order to find deals, you should have a mental list of the stores that offer them and their normal discounts. You can also search for coupons using sites like Rakuten or Groupon.
Shop weekly sales ads: Shopping deals and sales is the practice of offering discounts on specific items for a limited period of time. These offers can be found in newspaper flyers, store ads, store websites, or product flyers.
Limit streaming subscriptions: Cable TV and streaming subscriptions are expensive when you add them up. The savings may not be worth it. So, look at cutting unused streaming services like Netflix, Amazon Prime, Hulu Plus, or HBO Now.
Set low entertainment budget: This can be done by setting up a “fun money” for this type of spending. Only using cash is another great way to not spend more than you planned on.
Buy secondhand items: You should also buy secondhand goods when you can like clothes, cars or other household goods. The price of goods and services is always going to be higher when they are brand new.
Shop around for the best deals on essentials: Shopping around for the best deals on essentials can be a time-consuming process. Depending on your tastes and preferences, there are lots of different places to shop for these items. Online retailers are a good place to look, but you can also find discounts at local stores.
Do your research: Do not just go out and buy an item. Do your research beforehand that you are getting what you want and the quality matches up to what you desire.
Know your budget ahead of time: Being aware of how much it costs to live, spend money, and pay off debts is important to figure out beforehand. You must live within a budget.
Be realistic: Another tip is to ensure your financial goals are realistic. By being able to achieve easier low-hanging fruit goals, you are more likely to keep your motivation running high.
Live a healthy lifestyle: This is key to staying healthy and can present challenges because unhealthy choices affect the rest of somebody’s life. Going for a healthier alternative can be achieved by eating more fruits and vegetables, exercising, getting quality sleep on a regular basis, learning how to cook at home with fresh ingredients.
Don’t buy anything new: Another good tip is to not spend any money on things you don’t need. You can find the same items used instead of buying them brand-new, which will save you both money and time.
Go thrifting: This is time spent salvaging used or unwanted clothing, household items, furniture, and other miscellaneous items to sell or give away. Thrifting can be done on a large scale or on a small scale. You could find the next diamond in the rough!
Tighten your belt while spending less: These are specific strategies to save money on your weekly budget. Think before spending money and going shopping.
Be organized with your finances: By being organized with their finances, people are able to save money. Find out how to organize finances in a day.
Invest in yourself: To achieve financial success, it’s essential to invest in yourself. Investing in your education or professional development will bring you to the top of your field, where there is increased opportunity for future success.
Think hard about your career: Trust your intuition to make monetary decisions and diversify your career to make it easier to live extravagant lifestyles without sacrificing any freedom. Just be mindful that rewarding entertaining careers are true work because they require time, resources, effort, or resources that are hard to come by.
Move closer to work: The time spent commuting and the cost to maintain your vehicle may not be worth it. Analyze whether moving closer to work is worth it.
Save more than last month: Become okay with saving more than you earn so there is always something saved up in the bank.
Can’t afford it?: When you can’t afford something, don’t buy it!
Make a plan for your money: To really achieve your financial goals and save money, don’t make any rash decisions about how your money is spent. Preparing a financial plan will help avoid embarrassing events.
Spend money like it’s yours – not the banks: I hope many people can relate to this concept of living stingy. If you go into debt and are not careful, then this will lead to financial destruction.
Start small and build up savings: Save small amounts but diversify how you put that money to work.
Ask yourself: “What am I saving for?” – Think deeply and understand your true desire to save money.
Invest money today: Do not wait for the perfect time to start investing. Start to learn how to invest today. That is the way to passive income.
The tips in this post are meant to help you live a life of stingy-ness.
Are you Ready to Start Living Stingy?
If you want to spend less money today to be able to save more later, then living stingy may be your thing. However, if you want to make big changes and achieve a completely different lifestyle, then you may need to be more open-minded.
All in all… it depends on what your goals are and where you’re starting from.
What is it that you want to accomplish in the next 6 months, a year, 5 years, or a lifetime?
Everyone has their own idea of what they’re looking for. Some might be saving up money while others may be trying to make large purchases like cars or houses.
Whatever motivates you and keeps you on your toes, then that is what you want to focus on. Plus, you will save money along the way.
Today, you have learned the basic steps to take to start living stingy as well as specific easy tips to living stingy.
Now, all you have to do is decide that living stingy is a lifestyle you want.
True financial success is a collaborative effort.
Know someone else that needs this, too? Then, please share!!
Did the post resonate with you?
More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!
Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.
Inside: r/personalfinance is full of popular subreddits with ideas on how to make money and save money or invest. Know best practices for Reddit personal finance and ways to learn from them.
Reddit is a popular online community where people can share content, ask questions, and comment on news articles and topics. One of the most popular sections for personal finance discussions is /r/personalfinance.
Here are some of the best posts from that section:
“How has your finances changed post-graduation?”
“I was able to pay off my student loans as well as move back into my parents’ house without any difficulty.”
“My financial situation isn’t too bad right now, but I worry about the future.”
Reddit has some great threads that cover personal finance topics.
This blog post will give you a list of the top 25 Reddit Personal Finance Threads, letting you know which ones to check out next time you want to learn more about personal finances.
I created this list because there are very few resources that point to real people with real stories they want to share.
Our site is jammed packed with information on how to succeed with money. You may be looking for more specific personal finance information.
Also, you can find very specific information on r/personalfinance like how to save money when you’re starting off your career or trying to figure out how much it costs for certain things in life like specific college tuition, where rent costs vary, and so forth.
In addition, it includes some of the most popular and insightful posts on this website.
Hopefully, this will help you learn about all aspects of personal finance so that you can start managing money and reach financial independence today!
Why use Reddit Personal Finance?
There are many reasons to use Reddit Personal Finance.
Some people use it as a resource for their own personal finance, while others may be using it in order to plan out what they want to do with their finances.
Reddit Personal Finance is a community of people who share their experiences and tips on personal finance.
Users can post questions, browse the subreddit’s popular posts, or find new content in the “new” tab. Reddit Personal Finance also has a directory of personal finance resources and tools that you can use to better your finances.
The personal finance subreddit is thriving, and it’s only going to get bigger. With over 15 million subscribers in 2022, the community has a lot of content to explore. Plus almost half of users are online at any time to answer questions.
It can be hard enough to find your way around this vast platform but by following these 15 threads you will soon have no problem navigating Reddit Personal Finance with ease!
Positives of Personal Finance Subreddits
The internet is a place to share information and connect with others. One of the best ways to do this is through various social media platforms such as Reddit.
The following are some of the benefits of using personal finance subreddits.
Find out about new financial trends and learn about the best ways to invest your money
Get advice on how to manage your finances and make smart financial decisions
Be a part of the community and have a chance to grow your own knowledge
Learn about new products, services, and companies that could help you with your finances
Get advice on how to invest your money.
Grow your personal finance knowledge to help you reach your goals faster.
If you’re looking for a place to find some personal finance-related content, Reddit offers many subreddits that are all about these topics.
Some of the posts offer objective and helpful information while others can be subjective and relatable in person.
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
Reddit Basics
Before getting completely lost in Reddit, here are some important things you need to know.
For me, I quit using Reddit because I got overwhelmed and couldn’t find what I needed quickly enough. Thus, here is the lingo that will help you succeed.
Subreddit: A popular place to find information is on the subreddit; for example: “r/personalfinance”.
Upvote / Downvote: Users can upvote or downvote a comment. Reddit gives the comment a “score,” which is the number of upvotes minus the number of downvotes.
Karma: Other users can upvote or downvote your posts and comments; these tally to your “karma.” When providing helpful comments and posts, then they will reflect a higher karma score.
OP: Original Poster.
AMA: Ask Me Anything. An online Q&A session hosted by Reddit’s community in which some guest (normally famous) is or are available for questions
EDIT and ETA: Edit and Edited. A simple way for a user to denote the added to their original comment.
TL;DR: Too Long; Didn’t Read. This is added at the end of long text posts or comments to quickly summarize an article or comment as being too long to read. Sometimes, people use it to summarize the main point in case you don’t want to read the entire thing.
Top 5 Reddits Personal Finance
These are the most popular subreddits for personal finance. They have the most followers and daily interactions.
Does it mean they are the most important? No, there are plenty of subreddits to read regarding personal finances. (Don’t worry… we have a list of them below!)
R/PersonalFinance
R/PersonalFinance is a subreddit that focuses on personal finance.
This is the most popular community related to personal finances.
R/PersonalFinance is a subreddit for personal finance discussions, such as investing, budgeting, and saving money.
The subreddit’s community primarily consists of people who are just starting out with personal finance and those who are struggling to make ends meet as well as plenty of people who are ready to give back and help others.
Followers: 17.6m Members (as of April 2023)
Top Post: You are not “family” to your employer.
r/wallstreetbets
r/wallstreetbets is a subreddit that discusses the world of Wall Street, and how it impacts current events in financial markets. The subreddit’s name is a reference to the popular trading platform Wall Street.
Wall Street bets are financial wagers known for moving so-called “meme” stocks. Also, they are known to move stocks quickly in one direction to force hedge funds to cover their short sales, such as GME or AMC.
People in this community may win big and lose big since they are gambling on the information. You need to learn the meaning of YOLO.
Followers: 13.8m Members (as of April 2023)
Top Post: Times Square right now
r/bitcoin
The subreddit r/bitcoin is a popular Bitcoin news, discussion, and information site. The subreddit is one of the most active on Reddit with over 3 million subscribers.
As it is a digital means of payment, Bitcoin can resist wild rises in inflation and unfair banking practices because people are the ones who control their power and money. That is the belief of this community.
Followers: 4.9m Members (as of April 2023)
Top Post: It’s official! 1 Bitcoin = $10,000 USD
r/stocks
r/stocks is a subreddit in which people discuss the stock market, share trading strategies, and ask questions related to the stock market. There are no rules on r/stocks; users can post links to articles, ask questions, or share their own thoughts on the stock market.
Posts related to reddit stocks are welcome on /r/stocks, but read the rules first. Feel free to share a ticker everyone should know about.
Followers: 5.3m Members (as of April 2023)
Top Post: Companies try to prevent people from trading GME and AMCDiscussion
As you can tell, most of the popular Reddit topics are related to making money through stocks or cryptocurrency.
Is that a bad thing? No.
Just remember… You can learn to fish or you can be fed by others. Personally, I think it is best to learn how to fish and find your own way to make money with stocks and cryptocurrency.
Must Read:
The Next Best 21 Personal Finance Subreddits
The purpose of any of these subreddits is to provide an online community where people can discuss their finances in a respectful, non-judgmental, and anonymous environment.
We will cover the best personal finance Reddit forums that offer advice that can help people at all levels of their finances with tips ranging from simple ones such as grocery shopping without checking receipts and getting discounts by using apps to more complicated ones like how to save up for a vacation.
This list is not limited to just Reddit threads.
Here is a collection of the top 22 personal finance subreddits on Reddit:
R/Frugal
R/Frugal is a subreddit on Reddit.com that focuses on frugality and the concept of living life with less money. Also, the community is made up of individuals who are interested in living a lifestyle of less spending and more saving.
Frugality takes mental preparation of all your resources including time, money, convenience, and any other desired things.
Followers: 2.9m Members (as of April 2023)
Top Post: I got bids from tile setters to do a backsplash for $2000. I ended up doing it myself for under $200.
R/investing
Reddit’s r/investing is a subreddit dedicated to the stock market. It has more than 2.0 million subscribers and provides information on stocks, investing strategies, and other related topics.
Investing is the process of putting money into assets in the hope that they will increase in value. Sometimes investments are made by professionals, but most often, people invest for themselves and their families.
If you are looking for advice on investing, r/investing is the place to go. With nearly 2 million readers and growing, there is a lot of information here that can help people make better financial decisions.
Followers: 2.2m Members (as of April 2023)
Top Post: Robinhood and other brokers literally blocking purchase of $GME, $NOK, $BB, $AMC; allow sells
R/Shoestring
A discussion community focusing on travel and cheap options for traveling, whether through couchsurfing, camping, staying in hotels or hostels.
Discuss topics such as booking last-minute plane tickets, cheap destinations, budget transportation like hitchhiking or staying in Airbnbs. Learn the benefits of these different methods of travel.
Wanting to travel on a shoestring budget is a real gig!
Followers: 2.0m Members (as of April 2023)
Top Post: I worked roughly 10 hours a week at an Airbnb in exchange for housing and amenities.
R/realestateinvesting
Real estate investing is the process of buying a property with the intention of renting it out or flipping it for profit. The term applies to any real estate investment but typically refers to residential properties that are bought and sold.
Real Estate Investing is a popular topic on Reddit. It covers the types of investments, such as flipping houses to investing in commercial real estate, or even wholesaling.
Followers: 1.7m Members (as of April 2023)
Top Post: Today, at the age of 28, I became a millionaire
R/Financialindependence
The r/financialindependence subreddit is a good place to find people who are working towards financial independence.
This is a place where people who are or want to become financially independent, which means not working for money can meet one another.
Having money affirmations are a huge part of the motivation for those in the FI movement.
Followers: 1.9m Members (as of April 2023)
Top Post: Just Crossed 100K Net Worth Living in NY
r/PersonalFinanceCanada
r/PersonalFinanceCanada is a subreddit that is dedicated to Canadian personal finance and investing topics. The Reddit personal finance Canada community has over 600,000 subscribers who share questions, experiences, advice, and more.
This is great for country-specific financial issues.
Followers: 1.2m Members (as of April 2023)
Top Post: Bullet Dodged- First Time Home Buyers Be Ware.
r/UKPersonalFinance
The subreddit r/UKPersonalFinance is a place for people to share their personal finance experiences with others. The subreddit was created by two UK-based users in 2013 and originally had about 200 subscribers. It now has more than 500,000 subscribers and is one of the most popular finance-related subreddits on Reddit.
Learn, discuss, and request help on how to get access to, budget for, protect your money from, save and invest your money in the UK.
Followers: 1.0m Members (as of April 2023)
Top Post: Financial Reality Check
R/CreditCards
R/CreditCards is a subreddit dedicated to the discussion of credit cards, credit and debit cards, prepaid cards, banks, loans, etc.
In addition to the standard trading of information on pricing and terms, Reddit users can also post links to other websites that offer credit card offers.
Followers: 1.2m Members (as of April 2023)
Top Post: Do not do this, if you want your credit card to remain open
r/finance
R/Finance is a subreddit on Reddit that focuses on personal finance. The sub has more than 20,000 subscribers and receives more than 100,000 views per day.
All questions must be asked in the Monday Morning catch-all threads.
Followers: 1.8m Members (as of April 2023)
Top Post: Bipartisan bill would ban lawmakers from buying, selling stocks
r/budgetfood
The subreddit r/budgetfood is dedicated to discussing and sharing the best cheap food ideas. It has a strong focus on coming up with recipes that are both nutritious and easy to make.
Find great tips to stretch your grocery budget.
Followers: 1.2m Members (as of April 2023)
Top Post: Sesame “chicken,” but with cauliflower
r/FinancialPlanning
A subreddit to discuss and ask questions about personal finances, budgeting, investments, and insurance of people’s portfolios.
Followers: 581k Members (as of April 2023)
Top Post: Dad Level – Expert
R/leanfire
R/leanfire is a subreddit for posts about lean startup, business, and marketing. The name of the subreddit comes from the lean startup methodology philosophy which has been popularized by Eric Ries and Steve Blank, who are both cited as the founders of the lean startup movement.
R/Leanfire is a subreddit for those who are trying to achieve the type of success that qualifies you as financially independent. It’s not an easy task, but it can be done with hard work and determination.
Followers: 260k Members (as of April 2023)
Top Post: Just paid off my house
R/passive_income
Reddit has a subreddit that is dedicated to the topic of passive income. This includes things like side-hustles and other ways to make money without having to work for it.
The passive income community on Reddit discusses how they can make money. They post their experiences and give advice to other members of the community about making passive income. This is great for finding more ways to make money.
Followers: 322k Members (as of April 2023)
Top Post: I’m sure this means passive income. But can someone explain it. I don’t get it.
R/FIRE
R/FIRE is a subreddit that focuses on the topic of financial independence retire early.
For financial independence retire early movement has become popular over the past 5-10 years.
This is not just a community, but a place to discuss Financial Independence Retiring Early (FIRE) by fighting for financial freedom and controlling your destiny.
Followers: 263k Members (as of April 2023)
Top Post: Don’t be discouraged by young people who seem to be doing way better than you.
R/StudentLoans
R/StudentLoans is a subreddit dedicated to financial aid advice and discussion.
Some people are having trouble with student loans and they may be asking for advice. Here is some information on how to pay off your loan, as well as make mistakes that could lead to fees or interest added onto the balance of a loan.
Followers: 281k Members (as of April 2023)
Top Post: Biden to extend waivers another nine months
R/Bogleheads
The subreddit R/Bogleheads is a community for people who follow Jack Bogle’s simple investing methods to diversify and let compounding grow wealth. They share common interests and discuss topics such as the US financial system, taxation, Social Security, and retirement.
Perfect community for the passive investor.
Followers: 241k Members (as of April 2023)
Top Post: I started investing in my 401k 25 years ago this week. Hit a milestone today.
R/sidehustle
The term, “side hustle”, is a movement in recent years. Side Hustlers are people who would like to supplement their income by doing activities that they enjoy outside of work or school. In this community, start a small business or non-professional activity that you do in your spare time to supplement your income.
Followers: 412k Members (as of April 2023)
Top Post: Strange Side Hustle – I resell Bras full time on Amazon. AMA
R/money
r/money is primarily composed of people discussing personal finance topics such as stocks, investing, taxes, and personal finance.
Consequently, this smaller subreddit will help you get real advice and not lots of random opinions.
Followers: 89.9k Members (as of April 2023)
Top Post: New r/money subreddit icon?
Reddit Personal Finance Flowchart
The flowchart below describes the general process of saving for a goal. The user has to consider how much money they can allocate each month, and then determine how long it will take them to save for their goal.
This is a very similar concept to a personal financial statement.
You must consider how much you want to save each month, as well.
Find the Reddit personal finance flowchart.
In addition, the simplicity of the flowchart will be surprising.
Must Read: Money Bliss Steps to Financial Freedom
Reddit Personal Finance FAQ
Avoiding Reddit may be hard, but it is possible to avoid the more toxic parts of this site. There are a few key things to keep in mind that will help you avoid the worst of Reddit.
Avoid #1 – Posting Personal Information
The best practice is to avoid posting personal information. As such, your information may be used against you. Reddit is a social media website with different spheres of interest.
In order to avoid appearing disingenuous, it is best not to ask for upvotes or downvotes on posts.
Avoid #2 – Breaking the Thread Rules
The website has its own set of rules which every user should be familiar with before posting anything on the website. Reddit is known for its open dialogue, where members are encouraged to discuss a variety of topics from politics to technology.
However, people frown upon breaking the community rules.
Getting kicked out of many Reddit forums for not following the community rules is a possibility.
Avoid #3 – Be Careful on Opinions
The popular, winning opinions on Reddit are often biased and not based on facts. One example is the “What’s your favorite type of cheese” thread. In the end, it was a wildly popular opinion and later debunked by science.
One way to avoid these posts is by following an established Redditor with a solid reputation who has shown their ability to discuss topics like investing or personal finance without being judgmental or overly emotional about it.
Always do your own research to back up anything you may have learned on a r/personalfinance thread.
Reddit Personal Finance Windfall of Information
It is difficult to save money and track your finances because there is so much information coming at you.
There is no one likable than a hero in the story of personal finance, but what if you could be that hero?
These Reddit Personal Finance Threads are a great way for beginner investors or people just starting out on their own journey to learn about the different aspects of personal finance.
Also, there are helpful for veterans trying to keep up with all those new financial technologies over the years.
The best 25 Reddit Personal Finance Threads include some interesting posts on the topic from different perspectives like stocks, earning more money through certain professions, making your first million dollars, etc.
Thus, giving you plenty of insightful tips for success in life and finances!
After reading this Reddit personal finance article, make sure to subscribe for more Money Bliss tips.
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The concept of new vs. old wealth did not exist until fairly recently in human history; before that, most people could not have even imagined that they were one or the other kind of person simply because there was no such thing as cash!
Typically, old money is people with a lot of resources who are looking to pass on what they have in order to secure their future. New money, on the other hand, comprising mostly or exclusively by entrepreneurs starting from scratch.
The concept of old money vs new money has been around since the 1920s -yet many people have not given much thought to the concept.
Since most people feel like they will never belong in either group of people – old money or new money.
Are you interested in the concept of old money, but need to make it happen with new money? There are many reasons why you should give both styles of money a chance.
Over time, old money becomes new money.
A lot of people are fascinated with the idea of becoming independently wealthy quickly, right! But, what about those who want to become wealthy gradually? It takes time for old money to become new money.
There is a lot of discussions these days about the old and new money.
When you’re trying to make a big change in your life and start to build your own wealth, it can be difficult.
In order for the change to stick and grow into something more permanent, there are many steps that must take place. Lessons learned from old money.
If you are looking to improve your finances, then this post will help spark some inspiration!
What is Old Money?
The definition of “old money” is describing a social class of people we consider members of the upper class in society. This type of old money has been around for centuries and can be traced back to previous generations.
Old money is a wealth passed down from one family generation to another.
It is not “new,” and old money is a result of work that has made their first generations wealthy.
However, many people do not know about the qualities of old money because they may have been brought up as “old” money is only for a select few.
In today’s society, it is easy to identify someone as having old money because they are typically wealthy and have descended from many generations. You may look down on those who have old money for being “old-fashioned” or not “progressive” enough or just “trust fund” babies. This is a misconception.
Many of those with old money carry the wealth that has been given to them by their ancestors with dignity, insightfulness, and grace. Even when others lost everything due to greediness, they were able to withstand time periods of economic hardship.
Old Money tends to be more generous and kind than new money, which is often seen as selfish.
You can look at families such as the Vanderbilts or even the Rockefellers as old money passed down from generation to generation.
Even in Europe, the term “old money” associates with wealthy families. These families have been able to keep the wealth and power that they have passed down from generation to generation, as well as the pride of their heritage.
What is New Money?
New money is the self-made wealthy people in the world who have made it big.
New money is the recent abundance of money that has created their wealth.
It is new to them, and it took a lot of time for them to get where they are.
New money refers to self-made millionaires of the world, such as Jeff Bezos, Steve Jobs, and Mark Zuckerberg. They are rich because they were able to create a product or service that would go on to be one of the most popular products in their respective markets and quickly become successful.
Most of the new money is mainly found in occupations like technology, sports, and entertainment. These self-made millionaires of the world are entrepreneurs and innovators who have helped shape our society as we know it today.
Many of these people may have grown up poor or broke without extra money for anything. They did not have the support of old money to help them find success.
However, today, they can show that they have a lot of money.
What is the difference between old money and new money?
New money is made recently, whereas old money is made by previous generations in years prior.
Beyond that, there are some notable differences of old money vs new money behavior.
Chance to Make New Money
The biggest difference between new and old money is that new money has a lot of competition, which means there are many more opportunities to earn it.
You can make new money today.
You cannot change your heritage and family’s ability to pass down old money and wealth to you.
This is great for those with an entrepreneurial spirit. They can start to build wealth today.
Wealth Source
New money is self-made and old money is inherited.
Old and new money can be differentiated by who created the wealth.
You have old money if you inherited something from your parents or grandparents. Inheritance is when one person or business transfers part of its assets to another person at the time of death.
Earned wealth is the result of an individual’s effort and hard work, which is seen in the person’s bank account. Creating new money happens in your lifetime.
You are able to pass down that wealth and then, it becomes old money.
Tolerance for Risk
Old-money investors typically do not take on risks. So, they would not invest in something that has a 50-50 chance of working out. That’s why old money is safer than new money because it has a much lower risk factor.
Old-money investors typically invest in things they know will work out such as real estate, long-term investing, or other businesses.
New money takes on a lot of risks because you cannot rely on it as much as you would with old-money investments.
New money investors are starting from zero with nothing. They have much less to risk and the reward is much higher.
Social Perception
New money is not as elitist as old money.
People’s perception of old money is different from new money.
Old money has an attached stigma to the lifestyle they must maintain. In the United States, old wealth is more respected than recent wealth. This idea comes from the social perception of those who are wealthy for a long time and are able to maintain their status with ease.
People who come from lower-class societies often will have a hard time being accepted into high society. Thus, why old money and new money collide on many hot topics.
New money entrepreneurs may grow up poor and end up in a higher class than their parents. However, they may still be looked down on by those of Old Money because they grew through grit and ingenuity.
Differences in Spending Habits
The difference in spending habits between each group is not just limited to the amount of money they spend. Not only do different people have different tastes and needs, but there are also differences in how much people are willing to spend on certain items.
For example, there is a difference between people who buy luxury goods and those who don’t, but both groups could have the same amount of income.
There are many differences in spending habits between old money families and new money.
However, it is important to understand that they do not have a direct correlation with success or financial status.
For old money, they tend to be willing to spend money to uphold an appearance and a certain lifestyle. Yet, they are careful to make sure the family money can be passed on for generations.
Whereas, new money has wildly different spending habits. Some are frivolous with their money because they have waited so long for the opportunity and know they can always make it back again. Others are more hesitant to spend because they worked too hard to get where they are at today.
When does New Money become Old Money?
There is no clear line between old and new money, but the comparison still has value because there is still enough generational wealth to draw from.
The transition from new money to old money happens when the generational wealth is passed down.
The perception of old money was made in the early 1900s. In fact, old money is just wealth passed down and lasts another generation.
The hardest part for new money to become old money is teaching the younger generations how to manage their newfound wealth.
In addition, the common “new money” folks with net worth of over $2 million may not have the right advisors like the billionaires to properly transfer their wealth to future generations and start to build the old money way of life.
Do you know what 10 figures in money is?
Old Money vs New Money Examples
The easiest way to differentiate between old and new money is that old money is inherited from the older generation while new money is created by the current generation.
Old Money has the privilege of being passed down for generations, giving it a sense of stability and security.
New Money comes with its own set of challenges in terms of debt, lack of legacy, and lack of time-tested investment strategies for saving or spending.
New-Age millionaires are self-made wealthy families with new money, making up a large percentage of the wealthiest Americans. These people tend to be more frugal than old-money families who may have been successful for generations and acquired their wealth in the past without much effort. The current generation is acquiring its own lavish lifestyles rather than relying on inheritance. New money families are considered “new entrants” into an exclusive club for old money family members and can feel like they’re being left out due to their lack of legacy.
There are many reasons to give old money a chance, including the fact that it is more likely to be passed down than new money.
Old money is inherited while new money is created by the current generation. Old families are seen to be more educated and refined. In addition, they tend to spend less on luxuries because they know the next generation will have their hands full with managing their possessions.
Old Money is seen to be more classy than New Money.
Accordingly, Old Money families are considered a higher class, with roots going back centuries and attributed to industrialists from a previous era of wealth creation.
Why Take on an Old Money Mentality with New Money
There are many reasons why you should give “old money” a chance. Even if you were not born into inherited wealth, there are plenty of lessons to learn and pass along to your family.
Reason #1 – Financially Stable
First, the people who have old money are usually more financially stable and will be able to help out when times get tough.
They are taught how to be wise with money.
Learn if you embody one of the 32 habits of financially stable people.
Reason #2 – Life Experiences
Second, old money people are more knowledgeable and worldly than new money. They have a wealth of knowledge about the world and will be able to share it with you when hanging out with someone who is new money.
With old money, they have the resources to provide a higher level of education as well as travel to many countries.
However, you do not need money to do experience life to the fullest. One of the best ways to find immeasurable life experiences is to volunteer either locally or globally.
Reason #3 – Financial Safeguards
Third, old money people are more financial safeguards in place than new ones. So, they never worry about being broke or homeless due to the fact that they were born into wealth and their parents passed it down to them.
You can accomplish this with new money as well.
You must create financial safeguards to make sure a sizable chunk of your wealth is making a passive income. Thus, providing for your needs as well as your heirs for many years to come.
This is where a strong financial plan of how to transfer assets to the next generation is needed.
Reason #4 – Giving Back
Fourth, old money people usually give back more frequently than new money. As such, you can find many places with old money names on the building.
Here are some examples of what old money and new money can do:
– Give opportunities for young entrepreneurs
– Help create jobs and is an important part of the economy
– Give people a voice who don’t have many opportunities.
-Create funding for social projects that are beneficial to society
Reason #5 – Transfer Inherited Wealth
Lastly, there is something special about being able to pass down generational wealth.
This is something that comes with a lot of responsibility as you must teach your heirs how to manage money wisely.
However, you can build a lasting legacy beyond your own life.
Ready to Build New Money Wealth?
Money in the 1920s is much different than today.
Old money is usually inherited wealth or obtained through family connections. As technology increases, new money is replaced old money. However, when you look at industries like real estate where there’s not a lot of room for new money, it may be a good idea to give old money habits a chance.
When you give old money a chance in life, you will learn how much time-tested wisdom there really is behind these worldly possessions and riches.
Just because you want old money or new money, it does not greedy or extravagant. It means you know the value of a dollar and want the best for your family.
Embrace one of the many important habits of those with a background of wealth.
But the truth is, nobody likes the idea of talking about money, especially when it involves inherited wealth. So, have discussions today about long-term money decisions.
At the end of the day, it is more important to appreciate family ties over material possessions since they will last longer than any other form of wealth.
Old money offers wisdom to help new money avoid making the same mistakes.
The old money vs new money style is here to stay.
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