Reframing applies to your attitude about money. If you know that you have a serious problem—always trying to keep up with the Joneses—you can deliberately work to change your perspective. Rather than lusting over the new car in your neighbor’s driveway, think about the positive lessons you are teaching your children about living within your means by keeping your old car 12 years or more. Realize that managing your finances in this manner will help you have financial security, which is far more rewarding than a new car sitting in the driveway. Remind yourself that life is about choices, and you are making wise choices for your family’s future. These are all examples of applying the concept of reframing to your finances.
Reframing can also apply to your past experiences with investing. If you lost a significant amount of money in the last recession, reframe your thinking and be thankful for the money you have now. You probably have much more now than you had when you were on a tight budget in college. If your investments contain a large amount of risk, take the necessary steps now to reduce your investment risk going forward, so you are less vulnerable when the stock market takes another nosedive (a downturn is inevitable; only the timing is unknown). If you are not saving money for your future, commit to start saving now.
Reframing also applies to answering the question “How much is enough?”
“There are two ways to get enough. One is to accumulate more and more. The other is to desire less.”
~G.K. Chesterton (English writer)
Reframing may also apply to how many “things” (possessions) you want, and whether you choose to value family and friends, experiences, laughter, creativity, generosity, and time more than “things”. Reframing involves looking at an issue a new way, and it can lead to powerful changes in your level of happiness and in your financial security.
