Do you typically think the worst about your financial situation?
If so, that’s a common psychological phenomenon. It’s known as filtering.
Filtering means you take the negative or upsetting details and focus on them, while filtering out the positive aspects.
For example, clients of mine often focus excessively on their debt compared to their assets. While debt is worthy of attention and counter-strategies, it should be put in appropriate perspective as a part of overall net worth. Otherwise, debt can assume the drivers seat in financial decision making. This is usually counter-productive.
So here’s a financial decluttering task should you choose to accept the mission.
Identify an aspect of your financial life that may be upsetting you out of proportion. Do some “talk back” by articulating a corresponding positive aspect.
- “I have $25,000 of debt AND I HAVE $80,000 EQUITY IN MY HOME”
- “I chronically overspend AND I AM FULLY CAPABLE OF ADJUSTING THAT WITH TIME AND PRACTICE IF I DECIDE I REALLY WANT TO”
- “I am underemployed right now AND I HAVE GOOD SKILLS THAT I WILL PUT TO BETTER USE WITHIN THE NEXT YEAR”
Photo Credit: SparkleIce