The mirror effect on your finances

Reading Time: 4 minutes

When you look into the mirror, you see yourself. The mirror effect on your finances is the process of self-examination so as to make informed decisions about managing your money. When you are guided by this process, you do not blame the government or anyone for your failures. Despite the fact that the economy is dying, you will look for a way to thrive out of that situation.

How does the mirror effect on your finances work?

The mirror effect is like taking bullets for your own faults as well as the mistakes done by other people. In other words, it is a process of accepting responsibilities. You cannot be a great entrepreneur without mastering the mirror effect. A great leader is the one that takes the blame when things go wrong.

Realizing that something is not right

If you are to take responsibilities, you have to realize that the situation at hand is not good. The only way you can desire to change is when you discover that something has to be done.

You can only desire to be debt free if you realize that debt is bad for you. This realization triggers the urge to act and take charge. When you take responsibility, you seek for assistance on how to make your situation better.

Retrospective thinking

To solve a problem, you have to start with what you know best. You know the past very well and you have lived it. You understand all the events that led to your current situation. If you have the power to time travel, what can you change?

Moreover, retrospective thinking is not the same as regretting. Retrospective thinking is a way of learning by making use of past experiences. Therefore, you can use the past as a benchmark for the future.

Experience is the best teacher and it gives your the inspiration to make the future better. If you are serious about achieving financial freedom, you have to understand how you handled your finances in the past. Are you happy with the way your parents raised you? What can you change from the way they managed their money?

Accepting and learning from mistakes

As long as you are a living human being, you will make mistakes. Being a master on managing your money does not spare you from making mistakes. What defines success is your attitude towards your mistakes. You have to take full responsibility over your mistakes.

There are times you allow emotions to get the better of you and you let the power of emotions force you into bad financial situations. Accept that and find a way to solve it.

Many people strive to pay debt but unfortunately as soon as they pay off another debt, they acquire another one. This shows that people are not learning from their mistakes or maybe debt does not have a damaging effect on them.

In addition, if you do not learn from your mistakes, you will always blame others for whatever is happening to your financial life. You blame the bank, the government or even your parents but you forget to ponder on what you could have done to make your life better.

Why is it important to apply the mirror principle?

Many things that happen to us in life are not caused by us

We have no control over many things that happen to us. Sometimes you can try your best and still fail dismally. You can apply for a job and get rejected. It is not your fault to be born in a country that is suffering from an economic melt down. It is neither your fault to be born to poor parents nor to be born with a disability.

However, since you cannot change any of these, you need to find a way to use the negative situation to your advantage. This is not an easy process. Many dreams have been lost because of this.

When you look into your inner being for solutions, it allows you to embrace the situation and to adapt to it. Denying the situation will never solve anything. Great men and women are born out of anguish. Some became great investors because they struggled with debt for a long time and then decided to change their attitude.

The future is unknown

Who can tell me with certainty about what will happen tomorrow? Life is not predictable – there is only a room for prediction and speculation. If we can have knowledge about the future, many people will not buy any insurance policy except if the bad events are guaranteed to happen. There will not be any insurance company willing to insure you for the risk that is certain to occur.

Even though you can not know the future, you can prepare for it. You can apply the mirror effect on your finances to take advantage of that. By knowing yourself better, you can understand the level of risk to take. You can take insurance policies to cover yourself against the risk of a future event causing you to lose your money. That uncertainty about the future can make an investor wealthy by taking more risk.

You can control who you are

It is in your power to change the way you see yourself. It may be difficult to change others but you have the ability to decide on the direction you want to go. You know what you want to be and who you are. This gives you enough power to influence yourself.

Furthermore, there are a lot of things you can do to make your business successful without having to rely on others. Some of the things that can help your business do not require much effort for example your attitude and passion towards your business. If you position yourself for success, you will take advantages of opportunities that comes along your way.

In conclusion, applying the mirror effect on your finances is a key step towards financial freedom. Take responsibilities for the mistakes that you have done and aim on solving them. Take the blame when your investments do not go the way you planned. Avoid the trap of using your energy to blame others because you can never change what they do to you but you can change yourself.