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Sunday, March 9, 2014

Reframing Money

Sometimes in life things just don't work the way we expect them to, and we don't understand why.  We either don't get the results we want or think we should get better results.  Maybe we feel we should be making more money, or getting better results in the gym, or any of a myriad of situations we might be unsatisfied with.  Of course, we believe our knowledge and actions are right, but confirmation bias, the tendency to find evidence that supports our beliefs and ignore evidence to the contrary, throws a wrench in any method of proof that we are doing the right thing.  We need to find a way to take a different look at things; we need to reframe our thoughts on the situation to come at the problem from a different direction.  After all, Albert Einstein is credited with the saying, "We cannot solve our problems with the same thinking we used when we created them."

Money problems are one of the more common situations people are facing in this economy.  If you're having trouble making more money, paying off bills, or meeting your budget, maybe you need to reframe your thoughts about money.  Recently I read an interesting posting on Ramit Sethi's Brain Trust about reframing our thoughts about money, and I wanted to share the implications of that way of thinking.  I found the new way of thinking about money very enlightening.  

For many people, their income is simply a set of numbers direct deposited to their checking accounts by the company they work for.  Buying stuff is just a way of adding and subtracting numbers in a ledger.