Money is an integral part of everyone’s life. Money allows you to buy things you need to survive and helps you maintain your health. It gives you freedom and opportunities to pursue your dreams. It also gives you security and peace of mind. However, when you have a lot of money, it can be easy to root your entire identity in your finances.
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Many individuals believe that purchasing designer clothes, buying sports cars and eating at upscale restaurants can improve their social status, but this leads to an important question: Who are you if you lose everything?
Personal finance expert and co-host of “The Ramsey Show” Rachel Cruze asks herself this question often. She explained that it’s possible to lose everything you have, from your car to your home to your gym membership, so it’s crucial to focus on what truly matters: ensuring you aren’t defined by your possessions. In a recent YouTube video, Cruze recommended focusing on these three things to make sure your identity isn’t just your possessions.
A Higher Purpose
“There are things in life that are so much bigger than you,” Cruze said. Keeping yourself grounded in what’s really important is an excellent way to make sure you don’t lean too much into your wealth and ego.
To Cruze, this relates to religion: “If I am worshiping something so much bigger than me that cannot be taken away, there is value and security in that for me.”
However, you don’t need to be religious to have guiding principles that add meaning to your life.
One type of higher purpose may be self-development. Dedicating yourself to creative arts or lifelong learning can be fulfilling. It’s about the journey rather than the outcome. Self-development improves your mental health, happiness and confidence, allowing you to be more than just the items you own.
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Generosity
The second way to make sure money doesn’t control your identity is through generosity.
“If crap hits the fan and you have nothing else, there is something that is built through a generous life that will stay with you forever,” Cruze explained.
Embracing a generous lifestyle when you do have money can help you sustain that spirit when you don’t. Even when you don’t have much, Cruze recommends allocating 10% of your budget toward giving to a worthy cause. When you do this, it shifts the focus off your own problems and reminds you of what you do have and what you can do to help others.
Even if you don’t have money to spare, you can still be generous with your time and effort. An SWNS survey found that out of 2,000 American adults, 54% want to leave a positive mark on the world. You can achieve this by mentoring youth, volunteering, building up your community and motivating others.
Relationships
Finally, an important part of how we act, behave and see ourselves is through our relationships with others. It’s often difficult to maintain good relationships, and you need to put a lot of work into them. But that comes with a lot of upside.
“When you’re on your deathbed, be honest,” Cruze said. “We’re all not going to be like, ‘Man, I wish I had, like, $5,000 more in my 401(k).'” Instead, she explained, you’ll be thinking about the people in your life.
There is evidence for this, as 80% of the SWNS survey respondents stated that they care about the impression they leave on their loved ones. In essence, building healthier and stronger bonds with your friends and family can bring lifelong happiness, helping you weather any tough financial times that may come your way.
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This article originally appeared on GOBankingRates.com: 3 Things To Focus On To Make Sure Your Identity Isn’t Too Wrapped Up in Money, According to Rachel Cruze
