Budgeting Is Basically a Change in Your Mindset.
You probably expected all budgets to be based on numbers and tables, right? You are not wrong, but you are also missing a key component: your mind. And that’s the hardest thing to change.
As personal finance site Financially Alert explains, most of our money problems are not due to our inability to do math. They come from wrong thinking. We agree that we have a certain standard of living or certain expenses that we consider acceptable. To truly balance your budget, first focus on these mental standards:
Gaining financial freedom actually boils down to 80% psychology and 20% mechanics. So, guess where you should focus your efforts? By raising your standards, you immediately begin to influence the quality of your thoughts (psychology). In fact, if you only focus on getting financially vigilant, you will find yourself automatically tuning your mechanics in a natural way.
In practice, this means that anything that helps you change the way you approach finance is beneficial. The idea of money in terms of chunks or amorphous rip is hardly based on any kind of math, but it does help you understand concepts that can change your thinking. Focus on changing your mindset first and then let the math follow.
Raise Your Standards, Increase Your Wealth | Financial Alert via Rockstar Finance