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A psychologist explains how reframing the concept of budgeting can help you build wealth

General Angela Calla 14 Feb

Dr. Tracy Thomas has built a career out of coaching celebrities, CEOs, professional athletes, and other high-performing individuals.

The psychologist and author, who started her coaching business 12 years ago, earned over $1 million just in 2021 alone. She’s also built a seven-figure net worth, thanks to high earnings coupled with consistent saving and investing. Insider verified these details by viewing tax forms and bank account statements.

“I have accumulated a lot, and I’ve also invested a lot,” she told Insider.

Thomas has been saving and investing a portion of her income since she started her career three decades ago, she said. However, she hesitates to use the word “saving.”

The term connotes “deprivation of the things you really want to do in the moment,” she explained. “It’s  not very attractive or glamorous.”

Instead of thinking you need to “save” your money, tell yourself that you’re “accumulating wealth” or “building wealth,” she advised.

Similarly, replace the word “budgeting” with “allocating,” she added. Budgeting implies restriction — having to cut something out of your life. Instead, frame it as: You’re allocating money for future goals or purchases, like a home, car, or retirement.

This is the type of language that Thomas and her clients use, she said: “They’re not ‘budgeting’ their money — that’s a scarcity mindset. They’re allocating or investing their resources. They’re allocating resources into some of their monthly entertainment; they’re investing into their wardrobe; they’re investing into their future lake house.”

Reframing your thinking and using what she calls “wealth language” may have a greater impact than you think. It helps to not only re-establish your relationship with money, but shifts thinking from a “scarcity” mindset to one of abundance.

For example, “If you say, ‘I’m building wealth,’ the wording of that in your own psyche already starts to produce way more wealth, because the self follows whatever the directions are that you’re giving it,” said Thomas. “It’s similar to when someone says, ‘I’ve got bad news’ or, ‘I’ve got great news,’ and immediately your chemistry shifts, because you’re following those directions.”

Success coach and author Jen Sincero offers similar advice in her book, “You Are a Badass at Making Money.”

“If you’re broke or not where you want to be financially, you can be sure that your language could use an upgrade,” writes Sincero.

Oftentimes, what you say reveals your true thoughts and beliefs about money. She highlights specific phrases that may seem harmless but can actually be limiting and hold you back from building wealth. Here are six common ones:

  • “I want” is another way of saying “I lack”
  • “I wish” is another way of saying “I’m not in control”
  • “I need” is another way of saying “I lack”
  • “I can’t” is self-explanatory
  • I hope” implies it might happen or it might not
  • “I should” implies maybe you won’t or don’t want to

Try using this language instead, says Sincero:

  • “I have”
  • “I create”
  • “I’m grateful for”
  • “I enjoy”
  • “I can”
  • “I choose”

“Make the commitment to become aware of your language,” writes Sincero. “Get practiced at taking deep breaths before you speak. This will give you the space to stop, notice what was about to come out of your mouth, and course correct if needed.”

(This article is courtesy of Business Insider)

Angela Calla is an 18-year award-winning woman of influence which sets her apart from the rest. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. Through her presence on “The Mortgage Show” and through her best-selling book “The Mortgage Code, Angela educates prospective home buyers by providing vital information on mortgages. In light of this, her success awarded her with the 2020Business Leader of the Year Award.

Angela is a frequent go-to source for media and publishers across the country. For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at or at 604-802-3983.

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