Why am I not rich yet? Attracting money and the psychology of finance

The issue of attracting money worries absolutely everyone. Show at least one person who would not want to be rich. That's right, there are none. What about you? Can you fulfill all your desires today? What about investing? You work every day, let's say you successfully cover household expenses and small bonuses for yourself/family. What if it's a vacation? Unforeseen expenses? Credit? 

You think that tomorrow you will be able to earn more and then you will be able to think about what you want, close the loan for an apartment / car faster and live a little “happier".

You look with envy at those who always have money: "They are lucky." It seems to you that he necessarily had circumstances, acquaintances, “super brains”, but you have neither one nor the other, nor the third. You will say: "Raising money, investing, big incomes – this is not my story." But in vain. Everything is much easier than you think.

So why aren't you rich yet?

A small digression

For a long time, traditional financial models were built only on rational and logical theories, which assumed that people, for the most part, behave in a logical and predictable way. But something went wrong… In the "ideal" field of finance and economics, "non-ideal" people appeared, with their anomalies and "behaviours", often unpredictable.

According to the traditional economic understanding, people are rational subjects who maximize profits and strive to improve their well-being.

It states that emotions and other factors do not influence people when making economic decisions. That does not correlate with the reflection of reality at all. 

That is why today the topic of the psychology of money and financial behavior in general is so relevant. The first to enter the battle of cognitive psychology were Daniel Kahneman and Amos Tversky Richard Thaler, who managed to explain those phenomena that the theory of finance could not calculate. These authors found the reasons for the illogical actions and behaviors of the “economic man”, sometimes running counter to his own interests.

Why am I not rich yet?

You can take courses, read a magical book, get coached on financial and life success, but it won't work. Until you yourself are ready to grow. Of course, you will be given a recipe, but without the right ingredients you will not cook a dish; self-confidence, the right habits, goal setting and perseverance are what you can go on with.

In the meantime, even if you dream big and talk about wanting to be someone, someone else becomes that someone. Why is this happening? Most understand that you need to make an effort, and they seem to be doing something for this, but – they are constantly returned to the “0” point. The reason for this: internal triggers and the lack of a clear goal.

Triggers and settings

Negative monetary attitudes or so-called triggers can interfere with getting along with money:

Trigger (from the English trigger – “trigger”) is an event, “signal”, a circumstance that causes a person to have a certain reaction or experience based on past positive or negative experience.

Simply put, everything that happens to us is fixed in our minds. Something goes deep into the subconscious and “pops up” at the most unexpected moment. The trigger can be considered as the smell of coffee beans, which will prompt us to go to the coffee shop, and the smell, which will cause irritation because the person who once offended you used the same perfume.

The key to this concept is behavioral response. Moreover, a person may not be aware of it at all; elementary not to recognize the connection between events. And there is nothing wrong with that, because we cannot remember everything, let alone realize and fix the smallest details – this is the first time. If we have triggers, then our psyche protects us, creating a kind of “block” for a difficult situation so that you can survive it and stay “in yourself”.

How does this relate to raising money?

Have you ever heard the phrase:

“Big money is not about me”;
“In order to save, you need to save a lot”;
“To earn a lot you need to do what you don't like”;
"I can not afford it";
“Money is the root of all evil”;
“Modesty adorns”;
“I am not able to earn more”;
“I don't deserve more money”;
“To be rich, one had to be born to the rich”;
"Money ruins everything."

• Money is neutral. People give them positive or negative energy by projecting their internal conflicts, shortages, traumas.

• Most of these conflicts are “compensated” in this way, in other words, we take out our problems on money – creating financial ones. 

• Only our personal attitudes and beliefs hinder the growth of our well-being. 

Perhaps you heard these phrases in your childhood, you could see the distressed faces of your parents or acquaintances when it came to money. Therefore, now you can experience fear and tension regarding the topic of finance – these are the very triggers. Perhaps you think like this: “I don’t deserve more money” – these are already attitudes formed on the same “messages” from loved ones: “Keep your head down”, “Money is dirt”, etc.

To start attracting money, the main thing is to understand where the root of the problem is buried. Catch yourself in your own thoughts – are they predominantly positive or negative? When you think about increasing your income, what is the first thought that comes to your mind: “I need this and that to move up the career ladder, but I can’t do it because…” or “What can I do today to get this It was?". Most likely the first, because you are not yet a millionaire.

Raising money – how does it work?

As you already understood, the psychology of money is of tremendous importance.
The main vector of study is the path to financial thinking. “To become rich, you have to think like a rich man.” 

In order to “launch” the same financial thinking in yourself, you should start with financial habits. It is they who will help get rid of constant stress and begin to perceive money as a tool for achieving freedom and prosperity, and not as an end in itself. Of course, you will need time. Everything does not come immediately, but the first step is already part of the success.

So, we figured out our internal “hooks” that pull back. Now it's time to act. Let's start cultivating the basic principles of financial thinking in ourselves.

Raising money

Goals. 10 reasons and 3 most important

Do you have dreams? Desires? What about the goal? Do you know what you want? As a rule, already on these four questions a person begins to “float”. The first thing you should do is write out all your “wants”. At least 10 points. After, choose the 3 most important and one key goal. Further, the matter is small – make a plan and do not deviate from it! 

All successful people set themselves a specific goal, had a clear financial plan and, most importantly, stuck to it.

Visualize, Imagine and Realize

Perhaps everyone is familiar with the “visualization map”. Perhaps even your friends have beautiful photographs of places where they want to visit or any other “dreams” hung on the wall. Why not do the same? We think figuratively, seeing your goal “visually” every day, you will remember about it and that you need to take steps every day on the way to its realization.

Attracting money. Ability to save and save

• What matters is not the amount of money, but how we handle what we have at the moment.

For example, you want a car or an apartment, but today there is no such amount and, most likely, you will go for a loan. Which, in turn, will delight every month and spur on, and the phrase “you will have to tighten your belts” will become commonplace.

Now imagine if you had this money, how would you feel making such a purchase? Completely different. And it's not as difficult as it seems at first glance, you can earn even more. First, learn how to correctly distribute what you have. At least start postponing. You can take any scheme convenient for you. Let it be 50% of the salary for a personal contribution, another 20% for the goal – the rest for expenses. So, you can form your “airbag” and move closer to the goal.

You might think that if you were earning like THAT person, then of course you could save, but all successful people started with themselves, the skills of distributing finances and the ability to save / invest competently. The higher the level a person lives, the more he needs. Higher level means higher costs. The situation is the same.

The ability to procrastinate is perhaps one of the hardest skills to master. It leaves the feeling that we are working just to save. For some tomorrow. And I want to live now. But this is a delusion. So, you take away that very life from yourself, driving it into the same framework and everything goes in a circle.
And as we know, you cannot wait for a new result by performing the same actions. Many people are like instant pleasures, while the rich plan and calculate.

Interesting facts about money you can find here.

act wisely

There is such an interesting way to avoid “emotional spending” – put a note in your wallet “Can you afford it now?”. Just a minute of your time “to think” and now you have not driven yourself into a financial dead end again at the end of the month, and the necessary amount for your goals continues to accumulate. 

Emotional spending can keep you at the very bottom of the financial hole for a long time until you understand what it means to buy wisely. So, attracting money fades into the background. Rich people distinguish price from value.

tear up credit cards

If you live in debt, tear up your credit cards. Learn to live “within your finances” and know the simple principle “they spend more on credit cards”. If you were spending your money, you would think twice.

The second misconception that exists is the maximum loan payments. People want to pay them off faster in order to “take a stone off their shoulders”, but in fact they are only depriving themselves of the means of a normal existence. Minimize your loan installment while leaving more for life. So, you can at least gradually begin to save and live.

Environment. Learn from the best

People of the same profession attract each other. The same is true for financially literate people.

“People who don't have their own money can't teach you how to make it. You must know what millionaires do to create their capital. What are their habits? What are they reading? How do they invest? What controls them? How do they motivate themselves?
Grant Cardone

Find a successful person in your environment, or at least someone who always has money. Ask him how he does it. Go where it's scary. Go where there are people who have achieved great success. Be interested in how they live, how they think.  

Attracting money or Idea for a million

Rich people rarely receive income from one source. They accumulate and invest – and so on in a circle. They know firsthand about financial risks.

Focus on what you can and have. Start with at least one idea. It's already there, you just have to look.

Many founders of large companies have succeeded precisely because they did not wait for insight. We started with what is, with a simple idea, applying different options and ways to implement it. The most interesting thing is that the final product could be completely opposite to the primary idea, but it was he who brought that very first million. To engage in attracting money – the main thing to do.

Everything is not as complicated as it seems; look into yourself – what ignites you, what do you like? Are there any shortages, problems in the process of doing what you love. Perhaps there is a solution to this problem that will help other people to be free to do what they also love. Think, there is definitely an idea – consult with friends, find out their thoughts on this matter. Check out what the experts think. Chat with professionals. Take action!

Attracting money

Confidence is the key to success 

To become a millionaire from scratch, you have to get rid of the poor man's mindset. Careful work on yourself will lead you to success. If you are experiencing self-doubt, start simple – write everything that you have done and everything that you have succeeded today. Write every day, in just a couple of weeks you will feel completely different. 

Do what makes you respect yourself. Get up early, exercise. Do what you've been putting off for a long time. Little things like this lead to amazing results and are great for attracting money, as long as they are done regularly.

Get rid of the poor man's mindset; follow the people who live in eternal lack, what behavior is inherent in them, what phrases do they say most often? Find similar manifestations in yourself and start working on it. When will you start changing the phrases in your head: “I can’t” to “I can”, “I don’t have” to “What I have”? / “What can I do today?”, then your life will radically change its vector. It will be hard. Perhaps this stage is more difficult than goal setting and planning, because you need to find not just a solution, but change your mindset in order to start attracting money.

You get more than raising money

Once, by changing a couple of negative thoughts to positive ones, making a couple of deposits, setting just a couple of goals and taking just a couple of simple steps, you will radically change your life. And it's up to you to decide when it "one day" will happen. Maybe right now?

You will get money, a lot of money. You will become rich. Already, even knowing such simple things, you are rich. But if you know how to apply new knowledge correctly, you can get more than money. You will get freedom, stress from shortages will go away, new goals will appear and life will sparkle with other colors. You will be able to help not only yourself, but also others, increasing the coefficient of utility in this world. Interesting people and projects will appear around you, respect.

You get more than raising money.