The Difference Between a Life of Mediocrity and A Life of Wealth – Pennies.

Now hold on a second… don’t get it twisted. If you have pennies in your pocket while others have billions in the bank, obviously, the difference in wealth is not, and should not, be measured in terms of pennies. The difference between a life of mediocrity and a life of wealth is not the amount of money one has, rather, what you choose to do with that money, that makes all the difference in the world.

Not everyone who has billions in the bank started out with billions in the bank. In fact, most people who have amassed a large amount of wealth, started off with pennies in their pocket. The mindset they brought to their pennies is the same mindset they bring to their billions. In order to understand the mindset, we need to break down a couple of important perspectives on pennies, and on billions.

Protect your wealth, no matter the size.

If you have pennies in your pocket, then pennies is all you’ve got. Would you consider being reckless with your pennies if it’s all you have? Of course not. Those pennies should be protected, saved, and most importantly, invested. Keep them in a piggy bank, hide them in your sock drawer, clutch them in your hand everywhere you go if you have to, and check up on them every day. Do not mismanage the small fortune you have. It may not feel like a fortune when you compare it to the guy with billions in the bank, but when it’s all you’ve got, pennies are worth everything. Making unwise financial decisions, even with mere pennies, could cost you a fortune. It sounds dramatic, but it’s true. Think about it like this…

If you only have pennies, then obviously spending them is not the key to becoming rich. However, the same is true with millions and billions. Any rich person can tell you this. Have you ever asked someone with a lot of money, how they earned so much money? Never will they respond, “I got this rich by spending everything I had!” It sounds wrong, doesn’t it?

So, herein lies the ultimate question… If you only have pennies, how can you expect to become rich, even from just pennies? It’s possible, but only with the right money mindset. You’ve got to protect your wealth, no matter the size. If pennies is all you’ve got, then you’ve got to protect everything you have. Choose to make wise decisions with your money by saving and investing it, even if it is mere pennies. Avoid poor spending habits by maintaining strict accounts. A mediocre mindset with money will result in a mediocre life. A wealthy mindset with money will result in a wealthy life. The size of the sum makes no difference.

A part of all you earn is yours to keep.

How often do you find yourself justifying your spending on a regular basis? Take a good minute to think about this. Comparatively, ask yourself how often you justify saving on a regular basis. Compare your answers to both of these questions. Most people might be quick to justify a purchase, but hesitant to justify saving a small sum of money. Spending money is necessary to live in this world, but nowhere is it embedded in the structure of our economy that saving money is also necessary. Though it is widely suggested and accepted, saving money is always optional, which is exactly why saving money is inherently harder to justify. It’s easy not to do.

So, what can we do to justify saving money over spending money? Consider the following concept for a moment: your income is a reflection of the value and skills you bring to the marketplace. Read that sentence again.

You are being paid for the skills and value you share with the marketplace (the economy). In turn, your converted self-value into money must be spent on your living expenses (a.k.a. required spending) – the car payment, house payment, education, groceries, utilities, etc. – and the cycle continues.

Your value to the market >>> your value converted into your income >>> your money being spent on expenses >>> repeat

This cycle can be depressing, drab, and unexciting. This is especially true for those who live paycheck to paycheck. Here is how we develop our money mindset, and begin to unravel the spinning cyclone of spending. Firstly, you need to hear this:

You are a valuable person, regardless of your current income.
You are a valuable person, regardless of your current income.
You are a valuable person, regardless of your current income.

It can be very easy to forget that, especially when you feel your value and the skills you bring to the marketplace are underrepresented, undervalued, or you are underpaid as a result of those notions. So herein we find the justification for saving money…

Part of all you earn is yours to keep. Not because its the “right” or “smart” thing to do, but because your commitment to putting aside savings serves to represent how you feel about your own self value. How do you feel about yourself? Pay yourself for being a valuable person – that’s what savings is. Always pay yourself first. Your own worth and value are priority over everything else. Set aside what you can afford for your own self worth. Paying yourself $100 dollars, $10 dollars, even $1 dollar a week, a day, or a month, will drastically change the way you feel about yourself and your finances. It’s an easy thing to do, but it’s also easy not to do, and why many people have a hard time grasping the concept of savings.

“Paying yourself for being a valuable person – that’s what savings is.”

The accumulation of this discipline will result in an accumulation of savings, ultimately representing an accumulation of increased self-worth and self-value. There is no greater feeling than looking back on an accumulation of savings and appreciating the continued growth of keeping a part of all you earn. It is yours to keep.