Dive into the importance of a financial belief system and learn how personal trust affects your financial journey and choices.
Someone always has a financial belief system that will change your life and believes that it will change their life and yours.
Eventually, you must believe in someone, even if that is yourself.
The pushy sellers will stop at nothing to try to change your mind by forcing their financial belief system on you, but when it’s your money, it’s your decision.
Understanding What A Belief Is
What is the definition of belief anyway?
It’s simply what you trust to be the proper answer, having faith in something or someone, or an appropriate way of doing something.
At least that is what it means to me. For me to believe in something, I have to trust the source. There is always risk, no matter what you think.
Telling The Truth Hurts
When no one believes in your financial decisions, what do you do?
If no one believes in my way of thinking, the answer is easy for me because I’ve never been one to follow the opinions of others unless I found them beneficial to me.
Financial news lurks everywhere, online, on the radio, in print, at your front door, and even on your telephone.
Everyone hopes they are doing right by their finances, but are we really?
Financially, if you struggle to stay afloat, then maybe it’s time to find alternate ways to get back on track.
If you tell people you are struggling, they may offer advice, say their way is the only way, or suggest ways to save money. Believe what you want.
Planning For Financial Turbulence
They say always to have a backup plan if you know what can happen.
An emergency savings account will only get you so far. Unless your savings include many zeros, you have an income source from multiple places.
Financial Decision Making
Sometimes we will question what we are doing financially, and we should.
Never has there been a time when I’ve jumped into making financial decisions without doing some research and getting opinions from financial experts that I trust.
The fact of the matter is, nothing is for certain when it comes to investing, but trends and statistics are what keep us going.
My parents, for example, invested their money in real estate and said it was their best investment. That was their belief system back then and still is today.
We plan to do the same one day if we save enough for a one-time payment on a second home.
Of course, it won’t be our only plan of action towards senior life, living like my parents.
Once our mortgage is paid, we also want to focus more on our investments, as catching up is a place we need to be.
Hiding Money
These days, many people are scared to hand over their money to anyone, so it stays at home, hiding under a mattress, in a drawer, in a closet, in a box.
You’d be surprised if people came forward to tell you where they stash money around the house.
That’s probably why we hear these stories of people finding thousands of dollars in items they bought used at a thrift store or a garage sale.
People forget where they stash their money, or someone might pass away, and you know, forget to mention that they hid $100,000 in the back of a book.
I believe this is because of their financial beliefs that their money should be saved this way. You can’t change their minds.
Retirement
My parents are living an early retirement now, always on vacation for weeks, and life is good.
The best part is that the houses you bought years ago and are paid off keep paying them every month.
Some people may shun the investing in houses for your retirement theory, but it’s working for some people.
Many successful millionaires are where they are because of their good judgment in listening to a financial belief system they trusted because they felt they had enough evidence to support their decisions.
On the other hand, bad business deals have also led some people to lose their life savings because they put all their eggs in one basket.
Remember that some people are good talkers and can sell anything to anyone. If it’s too good to be true, it may be.
Final Financial Belief System
When we said we would pay our mortgage and invest the money, there were countless comments and emails about why we would make that decision.
I will write a more detailed post on that soon, but the short of it is, because it’s what makes us happy. It’s part of our financial belief system to get us where we want to be.
You can’t go wrong when you know a sure thing like your interest rate. I believe in my opinion. I’m wondering what investments will make you money 100% without a doubt, and I’d still be skeptical, but that’s just me.
There’s something about concrete that some variable does to others. Risk, you bet, but I pick and choose where that risk gets laid because it’s our money and financial beliefs.
When people don’t believe in how you spend your money, you don’t have to tell them anything.
In fact, that’s no other reason why I never talk about our money, let alone what we have, because for some reason it turns into a never-ending financial debate.
Don’t get me wrong, I love chatting about finance, but talking about what’s in my bank account with friends and strangers is not my cup of tea.
I never try to force my financial beliefs on anyone, although I do enjoy listening to what others do or have to say. That’s part of the learning process, in my opinion.
Being Questioned About The Way We Spend Money
On many occasions, friends have asked us why we shop at thrift stores, as I mentioned in yesterday’s post, and the answer has nothing to do with what people think.
Just because people may have money doesn’t mean they should run out and blow it immediately.
We all have financial beliefs, and no matter how hard you try, you can never force those beliefs on anyone.
Investing Beliefs
I follow many personal finance blogs and read many weekly blogs. I take every post I read seriously, but if I were to follow a weretain financial path someone else had tried, I’d do my homework.
My friend Mark at My Own Advisor is doing an excellent job with fantastic investments and reaching his dividend income goals.
Anyone would want to know his secrets; even if he told you, you’d have to do your homework. Maas has a large following of fans, for good reason; he’s showing them how his investments work for him.
It’s his belief system. Once he reaches a certain point, he will reach his personal financial goals. I believe he will get there.
I’m sure Mark has spent countless hours learning about investments and made money and lost money because it’s all about risk, but I can bet you he won’t do something with his investments just because someone said so. You have to realize that money and risk go hand in hand in anything you choose to do with it.
Money Behind Closed Doors
What works for one person might not work for you. Just because your grocery budget for five people is $600fiveand for another family it’s $900, we can’t judge each family because they may be shopping according to their financial and nutritional needs.
We don’t know what lurks in someone’s financial health.
Just because you see what’s on the surface certainly doesn’t mean that’s the light in the background.
We’ve talked about The Millionaire Next Door, and my other friend Mark from Money Saving Dude did a great review on the book.
Just because your neighbour drives a beat-up car and a beat-up dress, that doesn’t mean they don’t have money.
I’ve been subjected to people treating me differently because they see or hear where I shop, yet I may have more in the bank than they do. Does it really matter? Not really.
Working From Home To Give Up Steady Income
What is a blog? You’re reading a blog right now. It’s a place where someone or many people share their beliefs about a specific topic or many topics.
What if you want to give up your full-time job like Holly from Club Thrifty, Pauline from Reach Financial Independence, or John from Frugal Rules, to pursue your work-from-home dreams?
They all run blogs and are good at what they do. Not all blogs are successful, though; to make money, be prepared for blood, sweat, and tears.
You will always be met with opposition, but if your financial belief system tells you you can make it, go for it.
Giving up a steady income for the unknown might be hard, but many people have succeeded; it’s not for the faint of heart.
It’s hard work if you work from home because you are now fending for yourself. Nothing anyone says will stop you.
You only have to look at some of the incomes these bloggers earn from freelancing (those that share their numbers) to know they know what they are doing.
That’s why you should worry about what others are doing and focus on your financial health.
Budgeting
If you want to find someone you trust, it is a good start if there are positive changes to your finances. Finding someone to use a budget doesn’t mean it will work for you like it does for us.
Budgeting is part of our financial beliefs and has gotten us over the hump towards debt freedom.
Sure, you can try it,, but if you ddon’tgive the budget your 100% effort like we do, you will not s succeedand say you hate budgeting.
Boo on you, but I won’t judge you because I worry about my family first.
If budgeting is not your thing, I hope you find something suitable to get your finances back on track.
Saving money isn’t rocket science, but investing your money takes a skill and a risk tolerance that some people aren’t willing to take.
That’s the way you roll, and I can’t change that. Only you can.
So the next time someone tries to force their financial beliefs on you, saying that you must or should do something, figure it out for yourself.
You might even catch me telling you to do something, but like anything, do your research and know what you want from the outcome.
You Can’t Fix Others’ FInancial Belief System
Never judge someone because of how they choose to save or spend their money; you can’t change them.
Their financial belief system is their own; ultimately, they are the final judge.
You might see someone who spends their money eating out every single day and blowing money on crap, but can’t make miracles happen for them.
I’ve learned that you can listen; if they ask questions, you can answer, but you can never change someone.
Sometimes, hitting rock bottom, getting laid off, getting fired, losing everything, and going bankrupt is the only wake-up call some people will need before their eyes open.
Have you ever had someone say, ” Heard someone say, ” such time to cook, so I eat out?
If they believe it takes too much time, you can’t change that they don’t want to cook, or that they are spending more money eating out than eating in.
You can argue with someone about why they should buy a name-brand product rather than a no-name brand.
However, if that’s all they can afford, who are you to judge?
Maybe they like the no-name product over the name brand.
The fact of the matter here is that if you could open the door to someone’s life, you would find their health differences.
You may find some similar people, but it’s rare to find someone who thinks and acts just like you do.
So, the next time you want to dish out your financial belief system to someone, remember that whatever they choose to do depends on how they view the outcome for their own life.
Discussion: Have you ever had someone try to convince you that your financial beliefs were wrong?
Please leave your comments below, and thanks for reading.
Mr. CBB
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Funny that you should pick this topic today… one of my siblings and I have chatted a lot in recent days about what to do with her portfolio. I spoke to my approach and why I choose that methodology but then emphasized to her that she needed to develop a firm understanding of her own personal risk tolerance. That will help shape her investment choices so that she can sleep comfortably at night. I suggested she gather her information from multiple reliable sources, go slowly and put one piece of the puzzle in place at a time. How she approaches an RRSP will differ from a TFSA and particularly a non-registered account based on both the risk management she’s willing to assume with each and the tax consequences of her investment choices. I also said that she has a longer investment horizon before retirement than I do, so her strategy will probably differ from mine. I also know that as a married couple, I need to work not only with my personal comfort zone but also my hubby’s. He needs to feel good about our choices. It also makes our portfolio picture a little different again because he is younger than I am and could perhaps recover more easily from a blip in the market than I could. There are a lot of factors to consider. 😀
You were smart to advise her to make her own decisions and do her research but I’d expect nothing less from you. I know you are smart with your money and I know that you probably did the exact same thing that you told her. Good for you. 🙂
My husband and I buy most of our clothes at thrift shops. Occasionally foot ware, if we can find something we like.We keep a supply of clothes in Canada and Australia, that way we only need carry on luggage for our flights. In Canada, my only pair of sandals are approx 15 years old. I paid about $30, and I have reglued the sole a couple of times. Still very happy with them.
In Australia, I tried to find a pair of walking sandals, and ended up getting a pair of boys. I knew the style I wanted and this was where I found it. By the second year, they were falling apart, but I have temporarily repaired them. I went back to the same store, and bought another exact pair. I need something I can wade thru water, when it floods here. Now my ‘challenge’ personality shows. How long can I wear these sandals before they completely fall apart? So far they have lasted 3 months longer than I thought 🙂 Regardless..1 May they go into the trash.
I’m trying to learn what I can about investing and such and so far what I have learned is what I don’t know. I really need to read something over a few times before I can make sense of it but that’s the way I am.
Real estate is more something I can understand. My grandmother owned 4 houses when she died. We lived in one renting it off my grandparents. One of the other houses my Dad bought off Grandpa after Grandma died. That meant that when Grandpa died he had three houses, one to leave to each of his children. My Aunt didn’t want the house she inherited, so Dad bought her out, he inherited one of the other houses, so of the 4 houses Grandma had, he now owned 3 of them. The last house went to my Uncle for a while but eventually he decided to sell it and Dad bought that one too. We bought the house I grew up in and owned it for 6 years before we sold. Dad sold one of the other houses and still has two of them. One he lives in and the other is usually rented out. He’s debating about selling that one right now as it is empty.
I can understand people hiding cash money. A lot of these people are older and lived through the 1930’s. Back then people lost everything when banks went bankrupt and that fear of losing everything is still with them. So is a mis-trust of banks in general.
This is such a hard lesson for those of us who really feel like we’re trying to help. Obviously if you have a blog you’re in some way trying to say that you believe in the way you manage money, however I think it’s also important to note that groups change, not individuals. It sounds weird but we try and see it as challenging the way a generation has viewed saving money rather than attacking or judging the way an individual person approaches finances. Attacking and judging don’t work. Proving that your way works through financial success stories… that sort of works. Questioning why the world looks at money the way it does is essential in figuring out the best way to manage it. Just my somewhat jumbled thoughts on the matter. Thanks for the post!
This is why following financial gurus blindly is a bad idea. Yet many do it, but ti’s easier than researching things on your own. It’s not a bad idea to read advice form a guru, but make it your starting point, not your only information. In my experience no one really knows everything and advice that works for my friend could be exactly wrong for me. I’ve been reading and listening to financial advice for years. I’m sorry to report that every single time an “expert” recommended a particular investment, it tanked down the road. Even if it’s a good investment for a time, it’s probably not a good investment forever. And no one tells you when it’s time to get out.
Basic advice, like building an emergency fund, making a budget, saving to achieve your goals, these things are pretty trustworthy. It’s when you get into investments that risk enters. It’s best to diversify as much as possible to spread your risk. At least that’s my opinion!
I’m living in a small province where online job is not really introduced. Many of my relatives discouraged me that it’s impossible to work online. But I really do believe that I can make money on it and I proved them that they are totally wrong.
Great post, Mr. CBB. It is important to figure out what your financial belief system as it will truly help guide your decision-making process. It still amazes me how many people really have thought about how they want to use their money beyond simply using it. They don’t think about why they truly want out of live and what they need to do in order to achieve it. And so many people just want easy answers. You tell me what to do and even better if you can do it for me and I’ll reap the benefits. Sadly, it doesn’t work that way, which is why some people get taken advantage of.
You can lead a horse to water but can’t make him drink, right? I’m fortunate enough that my wife and I are on the same page, and she trusts me and allows me to handle most of the financial decisions. But still, I try to help my friends and family out, with even minor changes to their spending habits and their investment elections, but they still are hesitant to make any change, or they simply just don’t want to make the sacrifices. It’s hard to watch, but it’s not my life, so I can’t force them to do anything. Excellent read, btw.
You nailed it when you say they don’t want to make the sacrifices. That is exactly what we run into. We can’t make anyone do anything.