“My money: it comes in and it’s gone. I don’t even know where it went!”
We’ve all heard at least one tale of ‘disappearing money’ from a friend, a family member, or a coworker. Sometimes it’s just a joke. But sometimes these types of comments are indicative of a deeper problem. This problem may be overspending or excessive debt,. Such complaints are a key example of the poverty mentality. The subtext of this statement is “I have no control over my money. To make myself feel better, I’ve convinced myself that such control is impossible.”
Wealthy people (I don’t necessarily mean “rich”, it just made for a good title) have a strong locus of control. This sense of control is a key part of empowerment – the feeling that you can change your situation by affecting the world around you. More importantly, wealthy people take responsibility for their lives.
The poor, typically, do not have strong loci of control. This difference is a key aspect of distinction between the wealthy mentality and the poverty mentality.
Most of my money does a disappearing act, but it’s a different kind. My paycheque largely disappears into my savings. It’s not usually locked away, but it’s at least inconvenient to access. Living within my means and automated saving make this possible. But most importantly, I have a strong locus of control, because I always feel that I’m the master of my money.
Do you have a strong locus of control or none at all? Do things happen to your money, or do you make things happen with your money?