A Healthy Financial Mindset

A Healthy Financial Mindset

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2017-05-17

 

There is no such thing as “get rich quick” for most of us, unless you’re one of those people who find a bottomless well of crude oil in their backyard or invent the next billion dollar app and become ridiculously wealthy in a short amount of time. 

But the good news is that building wealth is entirely under your own control. All it takes is smart decisions and breaking bad habits. 

There are remarkably wasteful ways Americans spend their money. Chief among them are: wasted energy bills, daily coffee purchases, premium cable packages, traffic tickets, lottery ticket purchases, unused gym memberships, tobacco, alcohol, gambling, ATM fees, expensive (unneeded) warranties, credit card interest, and so on.

Some habits that are worth getting rid of:

1. Using out-of-network ATMS

2. Buying overpriced coffee every day

3. Using retirement money for extra cash

4. Not tracking your spending

5. Only paying your credit card minimums

If you were to break those habits and combine that with a smart approach to actually building wealth, you’d be well on your way to seeing a paradigm shift in your financial life. 

The term “wealth mentality” isn’t about standing in the mirror and meditating or visualizing large bundles of cash, although there is something to be said for nurturing a positive outlook in general. But here are some practical ways to turn those imaginary bundles of cash into real ones:

  1. Savings

Whether you take 10% of any income, and put it straight into a savings account, or whether you have another method of saving, the point is that you are saving. Not everyone does this, and then they’re surprised when they can’t afford some unforeseen financial situation. Savings add up over time, and the more you contribute to your “wealth vault,” the more your mentality will shift in that direction.

2. Conscientious spending

Buying things that you need, vs. things that you want. This will go a long way to creating a proactive attitude when it comes to money. Frivolous or extravagant spending gets people into debt, which has disastrous long-term effects. Living within your means and also within your needs is the way to go.

3. Reach for a realistic goal

If you want to wake up in the morning and be a millionaire just like that, well, you may as well wish for waking up with leprosy. You have about as much chance of being struck by lightning. 

The point is that you should reach for a realistic goal. For example, “I want to become debt-free this year,” or “I want to have $10,000 in a savings account by the end of this year.” 

Great. That gives us some practical and realistic goals that we can plan and strategize toward. If you take the smaller steps, the larger ones will take care of themselves in a way. Before you know it, you may have reached your goal of “being a millionaire.” 

 

IMPORTANT DISCLOSURES

Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities.

To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable-- we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

Some of this material has been provided by Broadridge Investor Communications Solutions, Inc.

David Lerner Associates does not provide tax or legal advice. The information presented here is not specific to any individual's personal circumstances. Member FINRA & SIPC

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About

Founded in 1976, David Lerner Associates is a privately-held broker/dealer with headquarters in Syosset, New York and branch offices in Westport, CT; Boca Raton, FL; Teaneck and Princeton, NJ; and White Plains, NY. For more information contact David Lerner Associates Call 516-921-4200 Visit our website: www.davidlerner.com

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Contact

Jake Mendlinger
Account Manager
Zimmerman/Edelson
516.829.8374 X 232
jmendlinger@zimmed.com

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