By Jackie Chikambure

In today's fast-paced financial world, the ability to handle large sums of money, especially unexpected ones, is a critical skill often overlooked. This concept, known as Big Money Temperament, is not just about managing finances; it's about reshaping your mindset to think beyond the constraints of your current budget.

So, what is Big Money Temperament?

Big Money Temperament is the capacity to effectively manage and grow large sums of money. It’s the psychological and emotional readiness to handle substantial financial resources without being overwhelmed or making poor decisions. Imagine expanding your financial horizons from solving R10,000 problems to R120,000 ones. This shift enables you to explore new income avenues such as side hustles, promotions, or property investments.

Why is Big Money Temperament Important?

Training yourself to handle larger sums of money can have a profound impact on your financial strategy. Consider your 3 to 5-year budget: envisioning a larger financial picture trains your mind to think in terms of hundreds of thousands rather than tens of thousands. For instance, if you earn R20,000 a month, a three-year budget amounts to R720,000. This larger figure opens up possibilities and encourages you to think bigger and plan more effectively.

When you train yourself to handle larger sums of money, you start to see opportunities that you previously overlooked. You begin to think about investments that can yield higher returns, side businesses that can generate additional income, and other financial strategies that can significantly improve your financial standing. This mindset shift is crucial for anyone looking to achieve financial independence and long-term stability.

Avoiding Common Pitfalls

We've all heard stories about lottery winners or participants on the South African TV series "I Blew It" who, despite receiving large sums of money, end up in a worse financial position. These stories often stem from an inability to handle the money psychologically and emotionally. Instead of investing wisely, their energies are scattered on short-term pleasures, often leading to poor financial decisions like selling properties they can no longer afford to maintain their lifestyle.

These cautionary tales highlight the importance of being prepared to handle large sums of money. Without the right mindset and financial discipline, sudden wealth can quickly turn into a burden. It's not uncommon for people to buy expensive items, fund lavish lifestyles, or make poor investment choices that deplete their newfound wealth. Developing Big Money Temperament helps prevent these mistakes by fostering a mindset focused on long-term financial health.

Training Your Financial Mindset

By focusing on a long-term budget or a vision budget, you train yourself to think in terms of larger sums. This training involves expanding your perspective from your monthly income to your total earnings over several years. This practice helps you develop the mental resilience needed to manage and grow substantial financial resources.

Consider setting financial goals that require you to think big. For example, if your goal is to save for a down payment on a house, think about the total amount needed rather than how much you can save each month. This approach encourages you to find creative ways to reach your goal faster, such as increasing your income or reducing expenses.

Practical Steps to Develop Big Money Temperament

1 - Set Ambitious Financial Goals: Aim for targets that push you beyond your comfort zone. Whether it's saving for a significant investment or planning for retirement, setting high goals will force you to think bigger.

2 -Create a Vision Budget: Instead of just focusing on your monthly budget, create a vision budget that looks at your financial goals over the next three to five years. This long-term perspective helps you see the bigger picture and plan accordingly.

3 - Educate Yourself: Knowledge is power. Take the time to learn about investments, financial planning, and wealth management. The more you know, the better equipped you'll be to handle large sums of money.

4 -Build a Support Network: Surround yourself with financially savvy individuals who can provide advice and support. This network can be invaluable when making significant financial decisions.

5 -Practice Patience and Discipline: Building wealth takes time and discipline. Avoid the temptation to make impulsive purchases or investments. Stick to your long-term plan and stay focused on your goals.

What does this mean for you?

Developing Big Money Temperament can transform your financial future. It empowers you to make smarter financial decisions, seize bigger opportunities, and avoid common pitfalls associated with sudden wealth. By thinking bigger and planning for larger sums of money, you open yourself up to a world of possibilities that can significantly enhance your financial well-being.

What are next steps?

Imagine receiving three times your current salary or income today. What would you do with it? This exercise is not just hypothetical; it's a way to start thinking and planning for larger financial opportunities. For instance, if you currently earn R20,000 a month and suddenly find yourself with R60,000, consider how you would allocate this money. Would you invest in property, start a business, or save for future needs? By planning for these scenarios, you prepare yourself to handle real financial windfalls more effectively.

To dive deeper into the concept of Big Money Temperament and learn how to cultivate it, check out the full video on our YouTube channel, Big Money Temperament or reach out to us, we would love to connect and help you navigate and achieve your financial goals.

For more insights and financial strategies, visit the ChikambureOfficial Channel on YouTube.