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.

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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.