So many people try to jump right into making changes in their financial life without spending time working on their mindset. Don’t underestimate the power of your thoughts and beliefs; they can have a very real effect on your success.
Here are some ways you can tackle your goals this year with less stress, more confidence and the habits you need to see real progress:
Avoiding Money Stress: Celebrate your wins
Before you head into the new year, take a look at what you’ve accomplished over the past year (or several years.) Taking stock of your achievements gives you the proof you need to tackle even more milestones in the year ahead.
It’s okay to look at what didn’t work, too; just try not to dwell on the things that didn’t pan out.
Instead, pay attention to what helped you achieve big goals, and what made it difficult to achieve others.
Adopt a growth mindset to offset money stress
If you’re feeling like you just can’t make headway with your finances right now, you’re not alone. We’re coming out of four years of financial uncertainty, very high inflation and interest rates, and global unrest. Everyone has been affected in some way. However, feeling defeated before you even get started can lead to the same habits and patterns you’ve been in before.
This is where it helps to adopt a growth mindset. A growth mindset is the idea that your challenges and limitations are opportunities to learn and grow, and that you can find ways to improve your situation. Sometimes “improving your situation” doesn’t look like much. It can be very slow and gradual, and that’s completely okay. Those small changes do add up over time, and the actions that feel difficult now can become second nature after awhile.
Look at the numbers
A lot of money anxiety is caused by one thing: avoidance. People know their finances aren’t where they want them to be, so instead of looking at the numbers, they avoid them. They tell themselves they’ll look at their accounts next week or next month, but the idea of seeing the numbers in black and white can be intimidating.
The truth is, no matter what your situation is, knowing the actual numbers is the first step in relieving money stress. Once you know the reality of your situation, you can start making an actual plan to get closer to where you want to be.
There are plenty of apps that can help you track your accounts and spending, too. You Need a Budget and Monarch Money are a couple that I recommend.
Come up with a budget
Many people avoid budgets because they feel restrictive, but honestly, keeping a consistent budget offers a lot of freedom. When you keep up with your budget, you can build in opportunities for spending without guilt. Plus, it’s the best way to stay on track with your goals. If you’ve felt overwhelmed by budgets in the past, try to challenge yourself to stick to it for the next three months.
It can take a bit of trial and error to figure out the best budget for you. Try to stay the course, even if you make mistakes along the way. You can always work with a financial advisor to help you come up with your budget and investment plans, too.
It’s never too late
Even if you’ve never put much thought into how you manage your money, you can absolutely start now. You’d be surprised how quickly you can make progress with a few small, consistent habits.
Here are some posts to help you get started:
Personal Finance Habits of Successful High-Income Earners
Create an Emergency Fund that Has Your Back
An Easy Budget to Build Wealth
About Your Richest Life
At Your Richest Life, physician-focused financial planner Katie Brewer, CFP®, wants to help you build a successful financial future. For more information on the services offered, contact Katie today.
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