- Embrace a “Start Today” Mindset: Declare, “Starting today, my mission is to improve my relationship with money.” Maintain this focus throughout your day.
- Shift Your Money Philosophy: Convince yourself that saving is wiser than spending.
- Reflect on Your Adult Money Experience: Assess how your relationship with money has evolved since leaving your parents’ home. Identify areas for improvement and consider whether you’ve inherited money habits from your parents.
- Explore Your Childhood Money History: Reflect on what your parents taught you about money, both directly and through their actions. How do these lessons influence your financial habits today?
- See Money as a Path to Your Future: Recognize that money is a tool for building the future you desire.
- Distinguish Between Needs and Wants: Take stock of your possessions and acknowledge that you likely have everything you need, and maybe even more. Differentiate between necessities and desires.
Do’s:
- Review Unnecessary Expenditures: Calculate your unnecessary spending for the past week and month. Can you reduce this amount?
- Understand the Impact of Unnecessary Spending: Realize that the money spent needlessly could have been saved for your future, such as retirement. Recognize that every dollar spent instead of saved is taking from your future.
- Identify Negative Money Habits: Recognize your frivolous spending habits. Pay attention to your emotions and actions when engaging in these habits.
- Create a Strong Action Plan: Develop a robust strategy to counter your negative money habits.
- Limit Credit Card Usage: If carrying a credit card encourages impulsive spending, leave it at home. This forces you to think twice before making a purchase.
- Recognize Credit Card Drawbacks: List the disadvantages of using credit cards to stay aware of their potential pitfalls.
- Use a Single Credit Card: Stick to one major credit card with no monthly fees and low-interest rates. Avoid charging more than you can pay off in a month.
More Do’s:
- Reserve Credit Card Use for Emergencies: Only use a credit card for genuine emergencies, such as medical expenses, rather than frivolous purchases.
- Set Clear Financial Goals: Establish straightforward financial goals and create a budget to achieve them. Write your objectives at the top of your budget and make sure to follow through.
- Practice Positive Self-Talk: Celebrate your financial accomplishments with positive self-talk. Acknowledge your efforts and be proud of your achievements.
- Avoid Impulsive Spending: Resist impulsive spending, especially at the checkout. It’s never too late to rethink a purchase.
- Implement a “No Buying on First Visit” Rule: When shopping, don’t buy anything during your initial visit. Consider it a reconnaissance mission. Reflect on whether the item is genuinely worth your hard-earned money.
- Prioritize Saving Over Material Possessions: Understand that having money in the bank is more important than acquiring new possessions.
Even More Do’s:
- Daily Budget Reflection: Keep your budget in mind daily to maintain your focus on saving.
- Calculate Daily Expenses: Add up your daily expenses to determine where you can make cutbacks.
- Celebrate Rising Savings: Be excited about your growing bank account balance. Even a $20 increase is a step in the right direction.
- Opt for Financial Stability Over Materialism: Choose financial stability over accumulating possessions. Work hard now and enjoy the benefits later.
- Avoid the “Keeping Up” Game: Remind yourself that the next best thing will be replaced soon. Don’t compete with others in a losing battle; prioritize yourself.
- Enhancing your relationship with money requires a combination of mindfulness, wise financial choices, and a focus on your long-term financial goals. By adopting these practices, you’ll build a healthier, more prosperous financial future.
