“Attitude is a little thing that makes a big difference.” – Winston Churchill

One of the most frequent requests I receive is for assistance in preparing a budget. It seems that there is a universal problem that afflicts young and old, male and female, low-income or high-income alike: “How can I match my income to my expenses?”

If you are struggling with making ends meet, overcome with debt, or just need to save some extra money to achieve your goals faster, the first step to success is always the same – you have to examine your current financial picture to determine where you are now.

The budget is one of the tools to use to see exactly how your earnings are allocated in spending. Very often, the budget reveals the source of the problem and can provide the key to the appropriate solution.

Although this basic principle is always applied when guiding clients, it is interesting to note that people with the same basic problem, who receive exactly the same advice, can have vastly different results.

What is it that would make one person achieve financial success while the other person remains stuck in financial misery?

This question came to mind recently while examining the case histories of two clients who needed to increase their income. Six months after the first consultation, the first client, who I’ll refer to as Peter, had far surpassed what we had projected, and had even started saving towards a deposit on a house. However, the second client, who I’ll call Patricia, had remained stagnant, and was still unable to balance her budget.

It occurred to me that the major difference between Peter and Patricia was not that he was smarter or luckier than she was, or that he had more connections to get ahead than she did; it all was a result of a totally different ATTITUDE.

As Alvin Day, author of If Caterpillars Can Fly, So Can I, declares in his monthly online newsletter, “Your attitude determines your altitude.”

Want to learn how to ‘think and grow rich’? CLICK HERE!

Let’s look at the different attitudes that Peter and Patricia brought to their financial issues and we’ll see how this affected their outcomes:

Issue 1- Preparing A Budget

Both clients were given the same guidelines on preparing a budget: write down all the regular expenses along with those that took place periodically, create spending limits for non-essential items, and make allowances for emergencies.

Peter’s attitude: Urgency. Peter got started right away on his budget. Despite working late hours, he stayed up for four nights until he had finished the task.
Peter’s result: Within the first week, we were able to create an action plan to increase his income and reduce some of his debt.

Patricia’s attitude: Procrastination. Patricia made several time commitments to complete her initial budget, but she broke most of them. Her excuse was that she couldn’t find a few hours to work on a project that could change her finances.
Patricia’s result: It took nearly a month to finish this process and to figure out how she was going to fix her financial problems.

Issue 2 – Carrying Out The Action Plan

Both clients worked in service industries and we looked at several options to increase their customer base and add value to their service. We also looked at some personal expenses that could be reduced.

Peter’s attitude: Determination. Peter was willing to do whatever it took to improve his business. If his clients wanted home delivery, he provided it. He increased his hours to suit his clients’ needs. He also made a big sacrifice by reducing his spending on entertainment.
Peter’s result: Within the first three months, he was able to boost his income by over 50 per cent. He used the excess income to pay down his credit card debt faster.

Patricia’s attitude: Difficulty. For every solution provided, Patricia could find another problem. She complained that she was not savvy enough to use computer technology that would help to bring in new customers. Although she claimed to be tired of her financial situation, she showed little effort in trying to change.
Patricia’s result: Her negative attitude made her financial situation worse, and she became even more frustrated. Patricia was only able to make a breakthrough when we focused on the reasons why she seemed to be sabotaging herself. Once she changed her attitude towards success, her finances finally improved.

If you’re tired of your financial picture but never seem to be able to change it, perhaps you should check your attitude. Do you have an outlook that holds you back, or do you have a mind-set towards success?

Copyright © 2007 Cherryl Hanson Simpson. No reproduction without written consent.

DON’T MISS MY NEXT ARTICLE! CLICK BELOW TO RECEIVE IT IN YOUR EMAIL:

Subscribe to Financially S.M.A.R.T. by Email

Originally published in The Daily Observer, March 29, 2007

Cherryl is a financial columnist, consultant and coach. See more of her work at www.financiallyfreenetwork.com and www.financiallysmartonline.com. Contact Cherryl