A life reset does not have to involve going back to school. A new job, side hustle or major overhaul to your budget is unnecessary because you can quickly solve many of the same financial problems you’ve been working on for years with a few minor actions this week. You can achieve great financial solutions in just a few weeks if you take them intentionally.
One way you can accomplish this is by reading about money. You do not need to set aside time for this; all you need is ten minutes each day over the next few weeks to read. You don’t have to finish an entire book on the first day and you don’t have to build an elaborate spreadsheet. By exposing your mind to the examples provided in a book, you can be inspired to change your spending, savings and overall outlook regarding your finances.
For instance, just one chapter can lead to decisions you will make that will save you thousands in the future. You can borrow a book, get one from your local library or pull out a book that you already own.
Planning your spending for the next 30 days can be much more effective than managing your previous 30 days of spending. This is similar to using GPS to determine how to get to a destination; you plan how you are going to spend your money and then know where you are going to be within the next 30 days.
Some expenses will always be categorically fixed, mundane, boring, and straightforward (e.g., rent, insurance, internet). Others, though, can also be sneaky (e.g., food delivery, hobbies, random “treat yourself” moments). When you write all of these expenses down on paper, you can give yourself permission to say no without feeling guilty: If it’s not in the plan, then you won’t do it. This is an extremely simple and very effective way to do so.
Guess What? Your Car Insurance Is Likely Overcharging You
Car insurance is something that most people will get once and then forget about it for many years. After many years, the insurance premiums will slowly start creeping up without anyone even noticing them, until someone actually looks into their premium amount and realizes that their rate has increased significantly.
But if you look for a better insurance company and/or policy, you can literally save yourself some real money quickly. Even shaving off a few dollars per month can really add up over an entire year. Yes, it’s a little annoying. But in just a couple of hours spent doing the research, you can usually give yourself a very high rate of return. This will probably be one of the easiest “raises” you ever get.
Debt Is Scarier When You Don’t Know What You Have
This is an uncomfortable but very empowering process: Write down every single debt you have—every single one, including balance amount, interest rates, lender name. The best way to do this is with a pen and paper.
Initially, it may cause a feeling of sting or discomfort – this is typical. Transparency removes the anxiety surrounding the unknown. Once you can see everything clearly, your fears will naturally diminish. Instead of spending your time trying to figure out the next step, you will be implementing a strategic plan. What you should focus on first (small balances or high-interest balances) is not as important as having a complete understanding of what your total debt picture looks like.
The Importance of Goals Over Motivation
The motivation to accomplish tasks will come and go over time; however, with clear-cut goals (the target), motivation becomes less of an issue.
Without a specific financial goal, it is easy to spend money unnecessarily in order to feel accomplished in other areas of your life. A defined goal provides a specific purpose for your money. Effective goals are specific, measurable, achievable, relevant to you, and limited by a timeframe.
“Saving more” is a vague statement.
The foundation for growth is setting goals where you don’t have the option to make excuses.
An Unseen Pattern of Consistent Financial Growth
Did you catch that we did not have to be wealthy, lucky, or perfect to accomplish all of the steps. Anyone can do these things because they are easy to understand, directed, and achievable today.
Financial Health is not achieved by making one big, dramatic decision. Rather, Financial Health is about reading instead of scrolling; planning instead of reacting, and facing your numbers instead of avoiding them.
Choose one of these options to work towards this week, and then add one more option next week. This is how you turn financial stress into increased confidence!
