Most of us would gladly jump at the opportunity to have more money. Very few people are likely to say that they would prefer to have less money…
One reason for this is that we can see how our future life and our current financial status are linked. And this leads to anxiety when thinking about financial futures.
Although it is not easy, it is beneficial to develop and maintain a positive outlook toward money to exercise greater responsibility for building our future financial stability.
In a recent email, Carl Richards shared some of the following ideas on creating a plan to continue reaching our financial goals by reducing anxiety.
Step 1: Pay attention to your spending
Mastering our finances won’t happen overnight. We need to make a habit of keeping tabs on where our money goes. In short – we need to be more aware of our spending behaviours and habits.
Here are some of the best ideas on how to pay attention to spending:
- Create a budget and follow a spending plan
- Record all transactions
- Regularly check your card statements and stay present with what you’re buying
Step 2: Find wasted money
Most of us are accustomed to the idea of saving money that remains after all the spending. Hence, we find it challenging to find more money to save. Here the answer is not found in trying to make more money; instead, it’s to try and find money that we’re wasting.
We can find wasted cash by regularly reviewing credit card statements and cutting expenditure on things we don’t need anymore.
For example, if you’re being charged 250 bucks for a subscription fee on something you’re not using anymore (like a mobile data contract), cancel it and save that same amount every month. In a year, you will have saved over two-and-a-half grand!
Step 3: Automate savings
Setting up an investment vehicle and automating your savings can help establish the habit of saving.
Most of our banks will help you link a savings pocket to your transactional account into which you can drop a couple of bucks each month. (aside: your bills can also be automated so that you deal with less paperwork in your life and further reduce money anxiety!)
When building wealth, we need to retain a positive attitude.
Working with a professional financial adviser will enable you to make informed decisions and discern what other areas of your financial plan can be activated and engaged with in order to reduce financial anxiety and replace it with financial peace-of-mind!