Millennials, Change Your Financial Rhetoric From 'Could' To 'Should'

Financial success, financial stability and financial comfort are all different pieces of the same money pie – whichever way you slice it, the bigger picture is intrinsically motivated by cash. However, it becomes easy to slip into the mindset that if you are satisfied with one of those three pie pieces, the rest naturally will fall into place.

Not Living Paycheck To Paycheck Doesn’t Mean You Have It All Together

Although to an outsider it may appear that if you are financially successful – if you have a steady job and a few luxuries; if you drive a nice car, live in a nice house, are paying off your student loans – then you should be financially stable and likewise be financial comfortable. That’s not necessarily true, and holding onto that line of thinking can be detrimental.

Furthermore, that misleading train of thought can not only derail your financial progress, but it can give you the impression that your financial literacy is more advanced than it actually is.

Source: MoneyTips

While financial concerns are not a unique area of worry for Millennials (quite the opposite actually, as it is one common concern across all age demographics), experts have observed an unsettling trend among financially “okay” Millennials: They lapse into a “buffer mindset.”

As explained by Wealth, Redesigned.’s Kate Piper, “They know they’re doing OK so they stop paying close attention. They aren’t going to struggle to pay the bills next month and if they want, they can occasionally splurge. But they would have trouble putting a finger point on how they’re doing financial than that. The padding they have in their paycheck and savings causes them to disconnect from their finances.”

Take Back Control: Changing The Way You Talk About Money

Piper developed a phenomenal infographic flowchart for individuals in this situation. The implications are that being able to afford something does not justify the decision in and of itself. Particularly for adults who are not shackled to their every financial move, it can be a slippery slope to losing sight of where your money goes day to day each month.

Source: Wealth, Redesigned.

As money mogul Dave Ramsey has said, “A budget is telling your money where to go instead of wondering where it went.”

Becoming financially aware involves asking the should questions and making informed decisions based upon the fundamentals behind the question itself. It’s about changing the way you think about handling excess income and instead of asking yourself “can I afford this?” asking “should I afford this?”

You alone are the ultimate conductor behind your financial opus. By shifting your focus from “can” to “should,” you shift the control from your money dictating your decisions to you controlling your money. No longer are you asking your bank account if it can spare some change for you to be happy, but you are addressing your finances and saying “Yes. I could do this. But maybe I shouldn’t. Despite what my bank account says, I am in control and I decide what to do.”

Don’t become a slave to your money or let yourself get lazy just because you are in a financial position where you do not need to count every dime. Recognize that control is a force you can easily obtain and wield. Seize that control, and don’t let a modicum of financial comfort convince you to ease up on that control. It’s your responsibility.