Have you been thinking about becoming more financially stable in the new year? Was 2020 a setback for you in terms of money matters?
According to a survey, 49% of Americans live paycheck to paycheck, and 53% of people do not even have an emergency fund to cover their expenses! If you're one of those who can't seem to save their cash no matter what and are still struggling to set up a savings account, this article is for you.
Before we dive into strategies that will give you the ability to build a stable financial position, it is essential to understand the importance of money's right mindset. A money mindset is a set of unique plans and attitudes regarding your income and how you spend it. It's a way of thinking that influences essential decisions such as the amount of money you should pay, save, invest, or donate over a given period.
To have a healthy money mindset, it is essential to feel confident and optimistic about your purchases. It also helps you develop positive vibes even when you are sometimes overspending, and it makes you believe that you can achieve your financial goals no matter what the circumstance.
Let's learn more about developing a healthy money mindset to be more financially confident in 2021 than ever before.
The beliefs that you hold about money can have a powerful impact on your everyday decisions. These beliefs are formed from the very beginning when we are young and impressionable. What we experience in our childhood and what we learn from our household circumstances, family traditions, or religious beliefs directly impact how we think and take action when we grow up. Most of these beliefs are so stern that it is tough to shake them off and alter a strategy that no longer serves us.
Limiting beliefs may sound something like:
It would help if you found the time to ask yourself where these beliefs are coming from and how true they are. Since your ideas are an unconscious part of your mind, you are what you think. Suppose you continuously tell yourself that you don't deserve vacations because you are overwhelmed by debt. In that case, chances are you will always limit yourself to a life that offers no peace or relaxation, but instead a constant beating up of meeting your debts.
2021 can be a fresh start for you. Reject all these beliefs for a while and force yourself to think that you can achieve the impossible because it's true!
Do you worry about how to get food on the table, how to pay your house rent, or how to pay your mortgage bills? If yes, then you're using up a lot of your creative energy in thinking of what you cannot do instead of what you can.
Remember, money is not something to burden you with. It is neither negative nor positive; in fact, it is just a tool that could enhance your life if you manage it effectively. By always letting your mind think about the expenses you've got to meet, you're hindering yourself from the power you could channel in making smart and effective decisions.
Instead of making your whole life about managing your expenses, manage your life in a way that allows you to take out a small portion of it to reflect on your budget.
Indeed, it would be best if you did not burden yourself with the amount of debt or credit that you keep rolling. However, it will be careless of you if you decide to turn a blind eye to your expenses or credit. Being completely unaware of your debts can cause you an unnecessary amount of stress, financially and personally.
You can still live a healthy lifestyle and engage yourself in a luxurious treat every once in a while by having a saving plan. Try to spend 10% of your budget on operational expenses such as paying the bills and getting groceries. Contribute 10% of your account towards your retirement fund or an emergency fund (if you still don't have one, it is preferable to open one soon!). Lastly, try contributing 5% of your budget to a specific treatment you might want to save up for.
This way, you can take care of your daily expenses, you can add to your savings, and also have a little treat now and then. Of course, these percentages are arbitrary, and you can customize them according to your news. If you think that's too much work, you can sign up for the Done For You Programs that creates a budget and debt repayment plans for you.
Thanks to today's digital economy, you can monetize everything. From music and literature to fashion and lifestyle, you can make videos, do a photo-shoot, write a successful blog – and monetize all of it!
The best part about this is that it doesn't even feel like a 9-5 job where you're busting yourself! Just pick something that you love doing and turn your passion into money. Be it a YouTube video that you're trying to make, a successful Instagram page, or active websites and blogs to promote a particular product – something is enjoyable for everyone to turn to that they could take up as a "side hustle."
It doesn't have to generate vast amounts of money or doesn't have to pay your bills. As long as you have a primary job, a side venture, and a digital audience, you can quickly achieve your financial goals in a couple of years. Doing something you love and then making money out of it will leave you with a higher degree of self-confidence when it comes to financial management.
Recording and budgeting your finances is a proactive approach to getting your financial life back on track. According to the Modern Wealth Survey in 2019, 56% of people who planned out their finances felt more stable and confident of achieving their financial goals by the end of the year than non-planners. And 63% of people who had a written financial plan reported having said that a recorded statement of their expenses made them more aware of their spending.
Making a finance schedule and recording your income will help you to:
Knowing how much you're earning monthly and how much you can save at the end of the month and the year can help you take big financial decisions like opening up a new venture, planning a trip, or paying off your significant debts. It can also help you prioritize funds and see which accounts are the most important to maintain.
Sticking to a financial plan requires consistent dedication and effort that does not come easy to everyone. If you think you can stay consistent in your goals by yourself, all power to you!
However, if you think there is a chance you might derail somewhere in between, it is best to get help from a financial coach who can guide you with the basics of money management and develop a positive outlook on money and finances.
I have helped countless entrepreneurs, women, and couples get back on their feet after a downfall and develop a healthy relationship with money – one that instills confidence and organization in their financial lives.
My goal is to make you more knowledgeable and confident about your money to grow your wealth in a way that inspires and encourages you along the way. I talk more about achieving your ultimate financial goal and gaining more financial knowledge in my Facebook group.
So are you ready to manifest your financial goals in 2021?
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