Financial freedom is one of the most discussed, marketed and analyzed topics of our days. A Google search reveals 64.2 million results on the subject. Unfortunately, most people have no idea what it means to be financially free. Sure, some may say financial freedom is getting out of debt, while others say it’s having a six-figure income. While both are great achievements, they are just pieces of the puzzle as a whole.
The truth is, paying off all your debt or making millions of dollars a year will only get you so far if your mind isn’t right when it comes to money. Bad debt and living paycheck to paycheck are just symptoms of a much bigger problem. A change in our financial position must begin with a renewal of our mindset.
What is the problem with my way of thinking now?
One of the biggest problems for people today when it comes to money is that they have a “buy now, pay later” mentality. It is the mindset that arises from the passion of desire, coupled with a lack of self-control and very little knowledge of how money works. It is the vision that exalts materialism and silently brushes aside the fact that we are enslaving ourselves to creditors. What’s worse is that we begin to pride ourselves on acquiring “things” that we don’t actually own. Soon, we find ourselves overwhelmed by these things because they become constant reminders that we are being drained financially.
Shouldn’t I be able to have the things I want now?
Among some of the scariest things I’ve ever seen is an internet ad showing two kids with amazing expressions on their faces and a caption that read, “A great way to get it all. The brands you want, the choices payment you need.” This scared me for several reasons. What struck me the most was the horrible indoctrination that payment options are something we need. This could not be further from the truth. To make matters worse, the ad underneath said “Buy Now, Buy Later.” What he really means is this: forget about the fact that you don’t actually have the money to pay for it now, just buy it and pay us later at a ridiculous interest rate with money we know you don’t have. Ads like these basically encourage you to put off the inevitable consequences of making bad financial decisions. See how playful this thought process is? Do we really know how much of an important role our mind plays in our financial freedom? If drastic changes are not made, millions of people will continue to find themselves enslaved as a result of their own financial ignorance.
What I can do?
What is the solution to this growing problem? How to break with what seems to be “the norm”? Also, how do we run in the opposite direction when everyone around us is running in the other direction? A good start is to make the change in our minds. I sometimes liken the typical financial lifestyle to the folk tale of lemmings committing mass suicide while driving each other off a cliff. Although this is a misconception of the lemming’s habitat migration, the analogy is excellent. Millions of people are committing financial suicide simply because they are following what they see as normal, acceptable, and even admired behavior. What they don’t realize is that they are simply following the crowds off a financial cliff. Financial freedom begins with a real understanding of how money works. We must rewire our minds when it comes to our finances.