Money-Consciousness – A Basic Foundation For Creating Wealth.

by Patrick Liew on February 7, 2014

Many people may not know that I did not carry a credit card for a long time.

Recently, as a result of mentoring a group of people on the discipline of creating wealth, I stopped carrying a credit card again.

Why?

1. Be mindful about money.

When you start to use cash, you can become more conscious about spending money.

You can be more mindful about reality of daily financial transactions.

When  money is spent, it’s gone – forever.

Over time, when you become more conscientious, you will become more careful about your spending behavior and habits.

You will be more wary about not wasting hard-earned money.

2. Appreciate value of money.

By using cash, you can be more aware of what you can get with your current amount of warm tender – not cold hard – cash.

In the same way, you may realise what you cannot get with your money.

You will realise that you have to save for awhile to get many good things in life.

For example, investing in quality education so that you can be better positioned and prepared for success.

3. Develop financial discipline and habits.

When you appreciate the value of money and the good it can do for you, your loved ones, and society as a whole, you will become more motivated to earn more money.

You will learn to explore more and better ways to generate a higher income and ongoing profits.

You will develop a habit of saving money. Once you start this wonderful habit, you will want to save more money.

You will realise that you don’t need to spend as much money as you thought.

You don’t have to follow other people’s spending habit.

Many of them don’t know how to manage their finance, let alone know how to achieve financial freedom.

You will learn how to spend less money and still be able to live well.

For example, I have learned to go to factory outlets and sales to buy good products but at a substantial discount.

Earning more, spending less and saving more money are basic but significant habits to become rich and wealthy.

4. Become a wiser consumer.

When you use cash to buy something, you will need to ask for its price.

You will have to take money out from your wallet and collect back the  change if necessary.

When you save your loose change, you will realise every cent can add up to a lot of money.

In addition, you will also become more mindful of the price of your purchase.

Soon, you will discover that prices of goods are not pegged scientifically and they are not absolute.

You can always get better buys and better bargains in different ways and places.

You may also realise that you don’t need the “stuffs” and “toys”  that are being merchandised, advertised and promoted to consumers like us.

You will learn to stop yourself from impulsive buying. You will not be easily misled by salespersons and cheated by con men who knows how to win your heart and mind.

You will learn to make better buying decisions and live a more effective life.

You will learn to be a wiser consumer.

5. Build a more sustainable reservoir of positive emotion.

You may discover that the outcome of buying something is in the hope of an emotional gain.

Such emotion is transient and frequently not sustainable.

Fact is, there are other ways and even better ways to enjoy positive emotion without having to spend money.

You will learn to appreciate and value relationships, experiences, and memories more than whatever you can buy in a shop.

Some of the best things in life as they say are free.

Sad to say,  we often choose to spend unnecessarily and pursue materialism and affluence.

The great things in life include learning to appreciate beauty around us, being grateful about daily blessing, and meditating about the goodness of life.

It also includes spending quality time with family and friends, going for a nice walk, or recording your reflection on a hand phone like what I’m doing right now.

You will learn to major on the majors. And like Steven Covey would say, put first things first.

6. Live simply.

There is another related cousin of the  credit card. It’s called an ‘ATM,’ ‘Cash’ or ‘Nets’ card.

For me, I use a non-local bank’s ATM card. I make it less convenient to draw money.

In addition, I draw only a small sum of money each time.

This is to remind me and compel myself to spend less.

When you spend less money, you will have less baggages to carry in your life.

You will learn to live simply.

Then, you will realise that you don’t need to live lavishly to live a happy life.

Simplicity is one of the keys to a life of happiness and well being.

Using cash can lead you to appreciate the more important and finer things in life.

7. Cultivate discipline of delayed gratification.

Spending money is the most expensive way to live life. Lol!

Learn to say no and cut down on unnecessary expenses.

Appreciate the value and discipline of delayed gratification.

It may be hard to practice delayed gratification in an ‘instant fixes’ society.

Most people are looking for easy ways, short cuts, get-rich-quick schemes, and on-demand pleasures.

Delayed gratification requires self-control, discipline and perseverance. These are also traits that are common in many successful people.

When I studied these people, I found they are masters in controlling their urge for immediate gratification.

They do it through self-restraint, training, and constant practice.

They know that success requires self-mastery, determination and hard work. They practiced these disciplines in their daily life.

People who exercised more self-control in fulfilling their wants became more positive, self-motivated, and resilient in achieving their goals.

As a result, they became more successful in life.

8. Be an effective negotiator.

When you use cash, you will have a greater tendency to ask for a discount and bargain for a better deal.

As you take a firmer grip of your financial position and have a better control over your expenses, you will be more conscious of better buys.

You will seek for advice. You will ask for a better way to acquire things.

You will find out if you can get a better returns for your money and a lower interest rate when you need financing.

You will learn the art and science of bargaining and negotiation.

That in and of itself can be fun and exciting. Besides, it is an important skill to develop and apply to be an achiever in life.

9. Develop long term vision and goals.

As you realise what money can do for your life and for others, you will be compelled to develop long term vision and goals.

You will not be satisfied with fleeting pleasures and short term gains.

In time, you will be able to afford better things in life.

You and your family can live in comfort and security even as you give more of yourself to the world.

You will have more resources to give back and live a more purposeful and meaningful life.

With sound vision and goals, you will be more mindful of how you should deploy and channel your resources.

You will learn to move in the right direction and achieve better outcomes.

10. Avoid unhealthy credit card debts.

Last but not least, you will never be trapped by evil clutches of financial hell because you can “charge it to the card.”

Credit card debts has become one of the biggest reasons for bankruptcy and financial ruins.

When you use cash, you will never live beyond your means.

You will never have to worry about paying high interest rates to credit card companies.

You will never have to worry about being overcharged and living with recurring payments.

You will not have to suffer auto-renewals of purchases that you don’t need and want.

By using cash, you can develop money-consciousness. It will prevent you from suffering financially or going broke.

Without money-consciousness, even if you are rich, you may not be able to keep your money and grow it over time.

Go4It!

By the way, I have also recorded other reflections.

Visit my Inspiration blog at http://liewinspiration.wordpress.com/

For my opinions on social affairs, please visit my Transformation blog at http://hsrpatrickliew.wordpress.com/

Please visit my website, www.patrickliew.net

Please read my reflections and continue to teach me.

Life is FUNtastic!

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