Do you struggle to manage your finances and feel overwhelmed by money?
Becoming money conscious can help you take control of your finances and feel more confident about your financial situation. In this post, we’ll show you three simple ways to become more money conscious.
You’ll learn how to understand the consequences of spending money, get clarity on how much you actually make, and track your expenses. Then you can set financial goals and create a budget that aligns with your priorities. By following these strategies, you can start controlling your finances and building a more secure financial future.
Check out our latest blog post to learn how to make small changes that can lead to significant results and help you feel more empowered and confident about your money.
How to be money conscious
Most people are living [and spending] unconsciously and are confused about why they struggle with their money. Here are the 3 best ways to become money conscious and reach your dreams. Become money conscious more easily with the free 7-Step Credit Card Debt Slasher here.
1. Understand there are consequences to how you spend money
Many people feel like there is more month left over at the end of their money. In reality, no one gets rich by spending all the money they make. People who make more money than they spend typically come out ahead in the long run. It’s important to remember that spending today can have consequences for tomorrow and beyond. If you don’t think about the consequences today, you will be forced to deal with them tomorrow.
It’s easy to go into debt if you’re not careful with your habits. Overspending can have severe financial impacts and lead to long-term problems down the road. To avoid these issues, track your expenses and be mindful of how much money goes out each month. Having an emergency fund set aside for unexpected costs is also a good idea so that you don’t have to worry about taking on additional debt if something does come up.
The bottom line is if you want to get ahead financially, think before you pull out your wallet and focus on saving more than you earn. That way, you’ll always be able to handle any financial surprises that come your way.
2. How much money do you really make?
When applying the money consciousness principle, you must recognize that your disposable income is not the same as your gross salary. Deductions such as taxes and benefits will affect how much money you can spend each month, even if you earn a specific annual salary.
People may be hesitant to uncover the truth, perhaps because they don’t want to face it or because they prefer to deceive themselves to feel better. If a person is aware of how much they actually make, they can focus on creating a budget that aligns with their goals and priorities. By knowing your actual pay and expenses, you can make informed decisions on how to allocate your money in a way that supports your life. This can help you avoid overspending, reduce debt, increase savings, and achieve greater financial stability and security. By grasping this concept, you can then start managing your budget effectively.
3. Knowing where your money goes when you spend it
Part of being more conscious is knowing where your money goes when you spend it. So many of us want to stick our heads in the sand. But, for many, it’s a wake-up call to understand their money goes.
Most people have 1 to 3 outliers in their spending. If you can identify these and eliminate them, you can dramatically increase your opportunities to grow your wealth. More money in your pocket is more money to invest in the future. And successfully managing money will help your financial well-being.
What is money consciousness?
Money consciousness means the level of awareness one has about their financial situation. It involves being knowledgeable about the consequences of spending money. You must also understand your income, expenses, debts, and investments. Then you use this information to make conscious and informed decisions about your money. This means creating a budget, setting financial goals, prioritizing expenditures, and avoiding unnecessary debt. By being more awake, you can better manage your finances, reduce stress and anxiety related to money, and achieve greater financial stability and freedom.
Are you money conscious?
The money consciousness principle is uniquely interesting to us because when we wrote 4: The Four Principles of a Debt Free Life, we thought we brilliantly coined the term “money conscious.” To us, it meant being clear on how much money we earn, save and spend. It meant having a little understanding of the economy and how it affects our lives.
It wasn’t until after we published 4 that we read Napoleon Hill’s book, Think & Grow Rich. In his book, Hill talks about money consciousness on a metaphysical level. The results of money consciousness on both a practical and spiritual level produce the same results. As Hill says, “Only those who become money conscious ever accumulate great riches.”
Being money conscious is being fabulous
Many people long to look fabulous to make up for past trauma. So, we try to make up for it by spending more than we can afford to buy things we don’t need.
Thus, we’re not truly living fabulously. This was our story.
Our book, 4, tells our story of how we learned personally and professionally about getting out of and staying out of debt after years of living fabulously but fabulously broke.
Principle 1 of a debt-free life is to be money conscious.
Our results from becoming more conscious
We had a negative net worth when we were unconscious of our money. After waking up and becoming conscious, we were able to create wealth and significantly increase our net worth. It was possible by making small changes and spending less than we made.
We made these changes by just tweaking our mindset about money. Basically, we made small, concrete, conscious decisions over time. And this gave us the power to control our lives.
Achieving money consciousness
David often tells a fun but all too familiar story about when we weren’t money conscious and spent over $500 on new clothes for one weeknight of dancing – the queens must dance, right? This is an example of what we mean by living fabulously broke. We then share our story of how we became money conscious and its effect on our personal and financial lives.
This hopefully shows that no matter where you stand with your money today or your level of money consciousness, anyone, including you, can turn things around. Start being money-conscious today and you’ll start turning your financial situation around today.
For more help becoming money conscious:
- What steps simple steps can I take to manage my money better?
- How can I save both money and time?
- WTF does all my money go?
After paying off $51,000 in credit card debt our own system, The Debt Lasso Method, we founded Debt Free Guys to help others become debt free and start building wealth. To start building wealth, start paying off growth-throttling debt with the 7-Step Credit Card Debt Slasher here.