4 ‘Empowering’ Money Scripts To Help You Live a Rich Life, From Ramit Sethi
Written by
Caitlyn Moorhead
Edited by
Gary Dudak
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
There is something to be said about the laws of attraction and how you frame the narration of your financial situation. Creating a mindset of abundance may be easier said than done, but switching to empowering money scripts can make a difference. Your unconscious belief about money is something you can control and guide you along a more fruitful financial path.
Money expert Ramit Sethi has an anecdote for unhealthy money scripts, and can help you flip them toward a more empowering approach. To better understand the positive side, you need to know the negative default versions. According to Sethi, here are some common negative money scripts people tell themselves:
- I will never make a lot of money.
- Anything that isn’t one of life’s necessities isn’t worth spending money on.
- We can’t afford that.
- Money is finite and once it’s gone, it’s gone and there’s never any more.
Now let’s examine how Sethi suggests to turn these around.
Empowering Money Scripts You Should Employ
To shake out of mentally setting yourself up to fail, Sethi has a list of empowering money scripts to utilize so you can develop a healthier relationship with money. Sethi says, “Often, how we feel, think about, and act with our money can cause major money problems.”
Therefore, altering your views to a healthier standpoint can help. Here are four ways Sethi says you can do just that.
Focus on Learning and Building
Instead of only focusing on the income you aren’t making, it could be a better money move to think about investing in yourself. This means you can grow your skills, or learn new ones in order to increase your earnings potential.
Sethi says, “Making ‘a lot’ of money is a learned skill and one I can build on if I choose to do so.”
Spend Money When It’s Worth It
The constant struggle between spending and saving may make it feel like you are never doing the right thing for your financial situation. However, though money doesn’t buy happiness, it can put a down payment on making life a little more joyful. There is no need to always sacrifice.
Sethi says, “If it improves my quality of life or makes me happy, then it is worth spending money on.”
Assess What Makes Your Life Rich
Living what Sethi refers to as your best “Rich Life” is essentially in the eye of the beholder. Evaluating your spending habits, and better budgeting for items you can afford, will help make achieving your savings goals less stressful and more efficient.
Sethi advises you to ask yourself this question before impulsively purchasing something: “Is that thing or experience part of our Rich Life?”
Follow Your Investment Plan
Having a financial plan is one thing, but executing it is another. Things will happen in life that will cause you financial shocks, but generally sticking to your investment strategy will help you stay the course and navigate the ups and downs. When you can see your plan as a whole, it leaves you wiggle room to treat yourself.
Sethi’s advice for this type of empowering money script is to tell yourself, “I am following my investment plan, so I can afford some things just because I like them, even if they are overpriced.”
More From GOBankingRates
