One of the leading causes of stress today is worrying about money, whether you have it or you don’t. Having too much money can be just as stressful as not having enough, in different ways.
It all boils down to your own individual money mindset.
To be successful financially, you have to overcome the obstacles that you’re subconsciously putting in your way.
Switching how you think about money is the key to a happy economic lifestyle, and you can do this with these five methods.
1. Pay Attention to Your Spending Habits
The first thing to do before you make any decisions about money is to get real with your current spending habits. Are you worried about not having enough to pay your bills, but you’re frivolously using what you have?
This might hurt, but go ahead and print out your last three months’ bank statements. Grab some highlighters and make a key for your main categories, like:
- Living expenses (mortgage, rent, car loan, utilities, etc.)
- Medical bills and healthcare
- Credit cards and loans
- Extras (dining out, fast food runs, entertainment, etc.)
Total up each highlighted section. Is there an area where most of your surplus funds are going that could be utilized better?
2. Look At Your Bills
Smart financial planning requires getting to know how you’re spending your money and cutting frivolities. But it also means looking at those monthly bills to see where you can save, too.
Check out your credit cards and anything with interest rates. Is your credit good enough that you could refinance and save hundreds or thousands of dollars? Can you apply for a 0% balance transfer card and pay off your debt faster?
Paying attention to your credit score is crucial. As your score increases, you can decrease those high-interest loans and get on your way to financial freedom faster!
3. Focus On Your Financial Goals
Setting goals will help you create mini-milestones on the way to get there. Do you want to pay off your car or a credit card debt? Become debt-free completely?
Without setting targets, you’re blindly following the “monthly payment” route. This will end up costing you thousands of dollars extra in the long run.
Write down your financial goals for six months, one year, five years, and retirement. Then create an action plan to get there, starting small. Keep coming back to your goals as you grow.
You don’t have to know the entire path to get to your final financial plan; just the next step to the next step!
4. Invest in Yourself
Billionaire financial guru Warren Buffett says, “By far the best investment you can make is in yourself.” The more educated you are in anything, the more likely you are to be successful.
This doesn’t mean you have to go sign up for all the personal training courses you see or go back to school and take out massive loans. The internet is a wealth of knowledge you can obtain for free.
Invest the time to learn personal finance habits, physical and mental health care tips, and motivational ideas. These will put you on the right path to success and help you overcome any negative money mindset obstacles in your way.
5. Change Your Thoughts
You may think it’s mumbo-jumbo, but even the most successful financial investors say that your thoughts dictate your success. If you think you can’t do something, you probably won’t. But if you decide you can, you’re more likely to accomplish even the hardest of tasks!
If you’re naturally a negative thinker, this could be difficult. But take it one day at a time. First, work on catching those negative thoughts and recognizing them. Then, try replacing them with a more positive version of the same idea.
“I’ll never pay off my credit card debt” can become “I can pay off one card at a time” or “I’ll stop using my cards so I can pay them off faster.”
Slowly, your thought patterns will adjust to this new way of thinking. Your whole money mindset will change along with it!
Changing your mindset, no matter what it’s for, is the hardest obstacle to overcome. But with these adjustments to your thinking patterns and financial spending, you’ll quickly see your finances in a whole new perspective!