I am passionate about helping people win with their money. This means that I really focus on the statements that people make and how they make them. I observe their body language, tone, pitch, and wording.
There are some statements that are particularly telling of what I call a “broke mentality” – the thinking of a financially broke individual.
One of those statements is “How much are the payments?”
People who are not broke ask the better question – “How much is the total cost – the purchase price AND the ongoing operating expenses?”
I have observed that people who ask “How much are the payments?” are more likely to:
- Pay a much higher purchase price
- Pay a much higher rate of interest
- Be unaware of the ongoing operating expenses
- Finance their purchase versus pay cash
- Still be paying for their purchase even after that item has been discarded
We are ALL susceptible to falling into the “broke mentality” – Have you ever made decisions this way? Would you mind sharing your story in the comments?