Most of the articles and posts I have read concerning “psychological wallet” have cited Bo Sanchez’s book 8 Secrets of the Truly Rich. Actually, I have not yet gotten my hands on that book. I do not have a lengthy financial background either. I mean, I have zero expertise on it. Thus, I am exploring the topic as much as I can during my free time (like now). Psychological wallet was discussed as a belief system, an attitude, or a relationship towards money. I like how Arvin Orubia puts it like a kind of money “comfort zone”. I mean if you do not know what your psychological wallet IS right now, consider how much money you would have left before you start controlling your spending.
Looking back, during the entirety of my 20s, that would be 0.00 php or just having enough to get by month after month.
As I understand it, psychological wallet is a person’s subconscious “wealth limit”.
Here are the 5 steps I used to improve mine.
- Mindset Change: Think, feel, and act like you deserve more
Throughout life, there are people who would make you believe that you can only do or amount to a certain level. Unconsciously, you might be believing them. Sometimes, it is influenced by your past decisions and experiences.
To change your mindset, you need to be brutally honest with yourself first. Looking at the mirror, how do you see yourself now?
In a notebook or a recorder, try to describe yourself -physical features, career, finances, relationships. List your strengths, weaknesses, fears, and achievements. Based on these, ask yourself what do you deserve? how much salary? which lifestyle? which products? which job or career? which people?
Yes. Mindset change requires you to know yourself first.
If you want to deserve or go to the next level, you need to know where you are at -only then you can start to change.
- Understand Wealth: Explore the boundaries of your limit
Increasing your “wealth limit” will require a reevaluation and an overhaul of what you consider as “wealth”. What is the status of your current finances? What are the things that you can live without? Do you consider yourself financially secured? Based on your current savings and expenses, how many months will you survive without income? If you cannot even answer these questions, perhaps you need to gain more financial knowledge first.
Luckily, there are several ways and materials available online to help you explore and evaluate the “wealth” you currently have. For Filipinos Arvin Orubia’s vlog and Bo Sanchez’ book are a good start.
- Define Your Priorities: If money is not an issue, what would you do?
Money is often a priority because of the things it can buy. Your salary or income from work, business, or any project serves as the monetary value of your time. To enlarge your “psychological wallet”, you need to make sure that you are pursuing appropriate goals.
For example, when I was in my 20s, my priority was to travel/visit the top tourist destinations in my country within two to three years. I cannot expect to double my “psychological wallet” if I already set my mind to spend my money.
- Be Comfortable with Money: It is not wrong to be rich
Many of us grew up watching bad people having lots of money and doing bad things. Perhaps, you are not “most of us”. Consider, if you see a person carrying loads of money in a bag, what is the first thing that comes to your mind? When you receive an extra $1000, what would you do with it? What do hackers, robbers, and drug lords have in common? Do you think money make people bad? Do you think money leads to bad choices? Do you think rich people exploit poor people because of money?
We learn from our environment. From we were children, we were fed with stereotypes.
–there are things that are only for the rich, and
–you should not want it unless your parents can afford it.
If you want to expand your “wealth limits”, you need to consciously make an effort to become a “pro-money”. Instead of equating money with evil, think of the opportunities you can have and the people you can help. Refrain from feeling guilty for wanting more.
- Take action: Start now, Do not delay
Desire alone cannot bring you to your next financial level. You need to take steps. If your Bank accounts’ maintaining balance is $100, double it. If you do not have an emergency fund, start making one. If you want to have a business, start drafting your business plan. It may be a slow process but it is still progress.
If you lack discipline, then you know where to start.
Commit yourself to one simple task at a time.
But never let the day pass without success in making efforts.
True, you can start later. But since you have read this post already, you are setting yourself for regret if you will not take any action now.
- BONUS: Grow, do not throw
Since I have been watching Arvin’s vlog (as per my fiance and brother’s advice), I would recommend my readers to do the same. Specifically, please apply the idea of diversification, presell, and cashflow in your business and in your life