To budget or to invest? Stop „saving“ and start working towards your financial goals

When it comes to financial advice, most financial advisors will tell you that budgeting your expenses and saving for the future is the most foolproof way to maintain security while also building an emergency fund for a rainy day.

However, a pearl of ancient wisdom says that fortune favors the bold, so „playing it safe” might not always be the most optimal path to financial security, and that’s ignoring the fact that simply budgeting does nothing to move you closer to your goals.

Jason Drees, a business coach argues that humans as a species tend to dwell on our past failures and setbacks, forcing us into a position where we’re scared to make impactful moves with our money in fear of those failures reappearing.

Drees believes that removing these fears and beliefs opens dozens of new doors and allows us to achieve financial greatness at a much faster pace.

Don’t fear the rainy days

When you think about „saving” money, the idea is often followed by the mindset that you’re saving because you don’t have enough, and Drees believes that shifting into an abundance mindset can do wonders when it comes to growing your money.

If you tell yourself that you have enough to put somewhere where it can grow, you’ll be able to think of your money as an asset that you’ll grow over time to meet your future needs.

It’s as simple as following a mnemonic like „I have money, I’ll make more money, it’s easy to make money” and sooner than later you’ll find yourself well on your way to achieving your financial goals.

Thankfully, there’s no need for any special knowledge when it comes to investing, and mobile apps called Robo-advisors can help you on the go whenever you feel like you have enough for an asset that’ll net you a fair share of returns.

Step out of your comfort zone

Drees outlines a concept he calls „The Financial Comfort Zone”, explaining that many people base their zones on their parents’ earnings, despite their opportunities being drastically different due to an avalanche of parameters that have changed over the years.

Imposing these limitations on yourself can cripple your ability to grow past the baseline we’ve set for ourselves using our parents’ examples, and the first step to breaking free of this is acknowledging its existence.

If you’re able to convince yourself that money is an asset that helps you achieve your goals rather than the famed „root of all evil”, you’ll also be able to accept the idea that your family and loved ones will still love you the same even if you surpass their earnings.

Any sort of growth prompts at least a minuscule amount of discomfort, but if you lean into it and allow yourself to expand, things even themselves out in due time.

Adopt a „rich person mindset“

Finally, a rich person’s mindset is one of the key components to maintaining a healthy relationship with your wealth, and that doesn’t only apply to their financial strategies, extending all the way to how those people think about money.

This includes starting with a somewhat basic budget but keeping in mind that your next income could be right around the corner.

Drees claims that rich people have long since eliminated their fear of rainy days, sinking their money into high-yield accounts instead, knowing their money will grow exponentially.

Additionally, it helps to think about money as a tool for achieving your dreams and goals, understanding that you can use it to make more money just like any other trading asset.

Final Thoughts

No matter what your financial situation is, having the right mindset when it comes to handling money should be at the top of your list when looking for ways to improve. After all, they say fortune favors the bold!