Earlier this week, I discussed net worth and liquid net worth. After writing that post, I had an important realization: some of us let our self-worth affect our net worth. I used to do the same.
I once wrote about how low confidence affected my spending habits because I wanted people to like me. During that time, I was over $25,000 in student debt. Once I understood that people liked me for who I am, not for my money, my spending habits changed, and my net worth began to improve. By the time I finished school, my net worth was only $10,000 in the negative instead of $25,000.
It’s natural to want to be liked and accepted, and we often compare ourselves to others. We tend to compare things that are easy to measure, like houses, cars, and salaries. This has led us to tie our self-worth to our net worth, judging our lives based on our possessions.
When we change how we think about the connection between net worth and self-worth, we can pursue a life that doesn’t revolve around money. Time is more valuable than money. When you give your time to someone, you become valuable to them. If friends or family only give you nice gifts but never spend time with you, would you still feel connected to them? Probably not.
Make it a habit to give your time to others. Build real connections. Focus on things that make you feel good, unrelated to money. Write down those moments and associate your self-worth with those experiences. If you’re unsure, think about your ideal day or what you’d do when retired.
Remember, you are unique and that’s what makes you valuable. Be proud of who you are and stay true to yourself. Don’t hide your uniqueness. Embrace your imperfections because no one is perfect. When you accept your flaws, you can connect with people on a deeper level.
Discover what makes you feel valuable and unique, and create more of that in your life. My happy place is writing; it brings me fulfillment and joy despite its challenges. Find what you love and do more of it. Face challenges head-on and live with the expectation that you will achieve great things.
Surround yourself with people who share your new mindset. Choose friends who support and cheer for you. It’s okay if not everyone in your life is like you; make space for those who align with your values.
I’m a big fan of affirmations. Every morning, I do my money affirmations. Celebrating your successes, both monetary and non-monetary, is important. Remember, your true self-worth isn’t tied to your net worth. It’s up to you to define your self-worth. Start increasing it today!
Have you ever let your self-worth affect your net worth?