Thermostat vs Thermometer
The thermostat vs thermometer comparison is a concept to identify what type of leader or decision maker you are. I feel this concept can be carried over to money management and finances. Depending on what type of mindset you carry, your money management skills will be affected accordingly.
So what’s the difference between a thermostat and a thermometer
A thermostat regulates the environment. Regardless of the surroundings or influences around, a thermostat keeps control of the situation. Thermostat stay in line.
A thermometer fluctuates with it’s surroundings. Depending on the environment the thermometer will react in accordance to it’s climate.
If you have a thermometer mindset, you may have a hard time staying financially stable. Keeping up with Joneses, Peer Pressure, Emotional Blackmail, overspending when getting a raise, or failing to downsize during a pay cut will all affect you if you are a thermometer. Your inability to stay consistent and being easily affected by outside influences will hurt your ability to properly manage your money.
When you follow a thermostat guideline, you are protected from any rainy days or outside influences. You are able to stick to your principles without entertaining outside factors.
Decide whether you want to be a thermostat or thermometer.