Affordability Mindset: It’s Also About What We Believe

This week, I want to go beyond the math and talk about something just as important - what we believe and what we tell ourselves about money.

Because affordability isn't only about the numbers. It's also about what we believe.

Think about that inner voice and some of the things it tells us:

• "I work hard. I deserve it."

• "Everyone has a car payment."

• "We make good money. We should be able to afford this."

• "I should be able to afford this."

• "My kids should have what their friends have."

• "We'll figure it out later."

And let's admit it - some of these probably sound familiar. I know I've used a few myself!

Our beliefs don't automatically make a financial decision good or bad. But they're worth paying attention to because our beliefs influence the choices we make with our money.

So what does "I can afford it" actually mean?

Sometimes our definition is as simple as:

• There's enough money in my checking account. I hear this one a lot. We peek at the balance and think, "Yep, looks good!" But that money may already have several other jobs waiting for it.

• I can make the monthly payment. A payment fitting into the month doesn't necessarily mean the purchase fits into the bigger financial picture.

• I qualify for the financing. Ooh, they approved me for THAT much? I must be doing pretty well! 😄 But what a lender says we can borrow and what makes sense for our life can be two very different things.

There's nothing wrong with asking whether the numbers work.

The opportunity is becoming aware of the beliefs we're using along with those numbers.

Something to think about 💭

The next time you find yourself thinking, "I can afford it," pause and ask:

• What am I using to make that decision?

• Is it just the numbers - or is there a belief behind it, too?

Awareness is where we start.

In your corner,

Liz