Building Your Rich Life: Escape the Cycle of Feeling Broke

Your mindset plays a crucial role in how you manage your finances. If you constantly feel broke, you’ll likely make financial decisions based on a scarcity mindset, living constantly in fear for financial security. This can lead to feelings of anxiety surrounding money that may cloud your decisions. You might even avoid long-term planning. Instead, it may be more advantageous to adopt an abundance mindset and determine how you will build your rich life. Your rich life is completely unique to you and will help you build financial health in a way that you might not have considered before. Here we’ll discuss six ways to build your rich life.

1. Spend on The Things You Love

Your rich life not feeling guilty about shopping — Image Source: Pexels

According to financial expert Ramit Sethi, building your rich life means spending on the things you love and cutting back mercilessly on things you don’t. Your rich life is yours for you to control. If buying new clothes is part of your rich life, then you should be able to fit that into your budget. This strategy is all about learning how to spend versus frugality and penny-pinching.

2. Don’t Limit Your Earnings

To break the feeling of being broke, try to stop limiting yourself. This could look like feeling as if you’ll always struggle with money. Instead, try not to limit your earnings and potential. If your money goal is to earn $25,000 more each year you could ask for a raise, search for a new job, or start a business as a side hustle. Opening up your opportunities will help change your money mindset.

3. Take Control of Your Finances

Usually, when you have a broke mindset you’re afraid of taking charge of your money. So you procrastinate opening bills? Are you afraid of making investment mistakes? Part of having a healthy relationship with money is taking action. It’s okay if you make mistakes at first. You can always consult a financial advisor to make a long-term plan.

4. Reframe Your Thinking

There are many ways to reframe your thinking and live your rich life. For instance, you may tie your self-worth to how much money you have. This won’t help you break the “broke” mindset. If your relationship with money is toxic, you may want to consult a financial therapist to help you reframe your thinking. You can break the cycle of limiting beliefs in regard to your finances.

5. Educate Yourself

Child learning about money — Image Source: Pexels

Information is power. If you have an unhealthy money mindset, it may be because you feel out of your depth. By listening to podcasts, reading books, or taking online courses you can feel more in control and start to build your rich life. Make sure that the information you choose to consume aligns with your goals of creating a rich life. If you pick up a book, for example about cutting expenses, it may actually harm your money mindset.

6. Be Patient with Yourself

Our views about money don’t change overnight. Plus, financial health takes real work and dedication. Give yourself some grace in this process. If you’re struggling during the process, you can try positive affirmations like, “I deserve a rich life” or “I trust myself to take control of my finances.” According to research, self-affirmations can restore your self-competence by allowing you to reflect on sources of self-worth, like your core values.