Ready to turn your finances around in 2021? Start with creating a wealthy mindset. Below are some important concepts to focus on to gain new perspective about money and make more of it next year.
1. Let your money work for you.
Money is a useful tool. Yet, average people only use it for buying things. In the coming year, explore ways on how your money can make more money. You can invest in stocks or bonds, real estate, or other paper assets. The possibilities are endless, but the concept is one and the same: invest your money instead of spending it.
2. Yes, money can buy happiness.
Several studies by the National Institutes of Health found that even among millionaires, more wealth did lead to more happiness. The happiest of them all? Self-made millionaires. How can this be true when the popular saying is, “It is better to be happy than rich”? While money cannot buy happiness per se, it can certainly buy more time with your family and friends, rest and relaxation, helping others, and so on. Building wealth also allows you to reclaim more of your time to do anything you want.
3. Health and wealth go together.
There is a direct link between health and wealth. Richer people tend to have healthier lifestyles than their poorer counterparts. In fact, in an analysis by The Washington Post, it came up that the greatest predictor of physical exercise, on the state level, was money. You do not have to be a millionaire to start a healthier lifestyle. Adapt the habit and invest on your health, too. While you are at it, review your health insurance and make sure it is enough to cover your needs in case of a health crisis.
4. Do not let your emotions run your bank account.
The wealthy know how to keep their emotions away from their money. They are not into retail therapy and they do not make business decisions reflexively. In 2021, aim to explore more constructive responses to negative emotions. You can exercise, call a friend, or spend time with your family to cheer you up. These ideas are free and also very effective.