Personal Finance Has Everything and Nothing to Do With Money

Here’s a 3-minute read from Lifehacker’s money writer Kristen Wong we think you might like.

Our fav takeaways:

The “No Worries” Money Paradox: If you don’t like or want to worry about money, you (ironically) need to get a financial mindset in place. Manage it first, so it doesn’t manage you.

People tend to brush off money management because they “don’t care about money.” Oddly enough, that’s exactly why they should care about managing it. If you don’t like to think about money, the best way to make sure you don’t have to is to set up a system for properly managing it. Yes, personal finance has to do with money. However, it’s really about learning to control it so you can get on with your life, whether that means traveling, affording the lifestyle you want, or paying your bills without worry.

Scarcity is a mindset, not just a physical circumstance.

When scarcity captures our attention, it changes how we think. By staying top of mind, it affects what we notice, how we weigh our choices, how we deliberate, what we decide and how we behave.

Money isn’t worth anything by itself. It’s what it enables you to do.

Money is only worth what you can do with it…So when I hear that someone’s goal is to have a nest egg of ten million dollars, it is an empty goal. This goal is nothing more than having bits and bytes in a certain configuration on a certain server in a database record associated with your identity. I accept that it will be difficult to get the bytes to arrange in that fashion, but look beyond this. What would you like to do with that money?…Assign your goals to the reasons you are saving money, not the money itself.

Source: Personal Finance Has Everything and Nothing to Do With Money