I was not sure where the most appropriate place for this post was because it has financial as well as Spiritual connotations. I decided on the financial and investing page but it could fit either one. (If you are interested in some of the Spiritual ideas, you can link to them HERE)
This thought hit me in the middle of the night and has stuck with me all day. Do we live by the principle of a budget or by the principle of abundance? To me, it is a very thought-provoking subject. Here’s why.
When living life according to the principles of a budget, by default, we are choosing to reduce our life and dreams down to the size of our financial reality as we see it today. It implies that there is a finite amount of resources available to us and we must work to stay safely within those boundaries. Those who live by strict budgets are usually stable in life but seldom think or dream beyond their budget. They may “fantasize” about abundance and even claim abundance, but in reality, everything seems to be pretty well calculated to fit within the boundaries of the budget.
When living live according to the principles of abundance, one MUST believe in the fact that there is ALWAYS more than enough and more than is needed. An abundance of resources of every kind! I’ve found that I’ve scrapped the idea of a budget long ago. The whole idea and process of wealth creation requires embracing the idea of abundance. It is practically impossible to create substantial wealth working within the confines of a budget. Especially if it’s a meager budget.
Working according to the principles of abundance, one will constantly be operating beyond a budget. I estimate that we personally function about 20%-30% beyond our abilities. That necessitates a continual life of action and creativity. THIS IS A KEY, (I believe). Abundance manifests itself when choose to operate beyond our financial boundaries. Obviously, there is an element of wisdom that must also manifest, otherwise we can become a slave to debt and create the opposite of abundance and freedom. Having said that, our creativity flourishes when we are functioning beyond our resources.
Personally I’ve found that when we are working 30% over budget, we seem to gain about 30% in net worth over the course of a year. And we create about a 30% increase in passive income as well. I also find that when we retreat back to operating within our “Budget” that we do not see any increase in income or equity. ISN’T THAT INTERESTING!