Financial improvement seems to be a common desire across American consumers simply because they are not happy with their current finances. More often than not, they neck deep in several debt accounts ranging from student loans, credit card debt and even payday loans that are eating up on their monthly income and household budget.
There are money hacks for financial management which are most helpful for people who are just lost on how to make sense of the their income in relation to their expenses and long term goals. This is one tough task that even adults have a hard time managing their family’s finances. This is not really surprising at all given the amount they have to juggle day in and day out.
According to Nerdwallet.com, the average household’s debt accounts averages to a little less than $130,000. This includes their mortgage loan, any student loans from college, credit card debts and even their auto loans. This does not even include any signature loans they might have taken to help them make ends meet with their finances.
Taking these all in could already be nerve racking and could even lead to stress which can manifest into physical ailments. One of the ways to battle this and address these concerns is having the right frame of mind and making sure that you get your head in financial game. There are mental tips that you can use to help you achieve this.
Financial improvement using your mind
You might already be giving up because you cannot seem to make your budget work. It might even be starting to ruin some relationships at work or in the family. Here are a few mental mantras you might want to ponder on to help you make your financial journey a little better.
“My financial situation will become better”
When you are drowning in debt, it might be challenging and difficult to see a light at the end of the tunnel. But you need to remind yourself that there will be better days. You need to work hard to change your current situation but know that just because the future seems bleak that doesn’t mean that you have to just sit back and wait for it to happen.
Forbes.com shared that the Great Recession in 2008 was due to the fact that the dollar became weak and the housing bubble collapsed. But at the moment, the economy is doing better after a few years. Just like you, time, hardwork and effort can change your financial situation and outcome and it all starts with you. It can change for the better but you must be willing to work hard for it. You need to believe as well that it will happen because if at the end of the day you have doubts on your ability then you will have a tough climb ahead.
“I can minimize and still be content”
Minimalism in personal finance can do wonders for financial improvement but the tough part in all these is striking that delicate balance of having just enough. The country’s economy is driven by the consumer spending which basically means that the more people spend, the stronger the economy is. But that does not mean you have all the reasons to spend like there is no tomorrow.
Materialism is a deadly social disease that needs to stop and you need to understand that your material possessions does not define who you are. You do not need to have the latest car from the dealer to show off to your neighbors. That smartphone might be a nifty little gadget but at the end of the day, it is still used to call or send out sms to family and friends.
Whatever you get to save from watching your spending, you can use them to improve your finances. It can be to lower down your debt accounts or simply strengthen your reserve funds or retirement money. There are a lot of uses for extra funds in the budget from not spending too much.
“I can take reasonable risks”
Investopedia.com defines risk as the possibility of losing part or all of the original investment money you put in. On your part, you need to understand the level of reasonable risk that you are comfortable with. This is an amount that your budget can withstand if ever you fail to recoup the amount down the line. You risk a small part of your finances to try and increase your net worth over the course of time.
This can be going into a business venture or trying to invest in your hobby a little more. The end goal for these reasonable financial risks is to try and improve your current standing by investing a little. You just need to overcome your fears because you think that you are already in debt and you will still put in unwarranted risk. The idea is looking for an amount that will not totally cripple your finances because when it pays off, it might even be the solution to all your financial problems.
“With discipline, I can learn new skills”
It is a great idea to grow your income over the years and one way to do that is invest in time to learn a new skill. But one of the main ingredients to accomplish this is discipline. It is hard to venture out to something new when you already have a good thing going but try not to be too comfortable and strive for growth.
It takes time to learn a new skill like website design or development or even wrapping your head into photography. It would help if you already have an interest in the skill that you will pursue. This can at least get you going for the first few weeks. You just need to remember that this skill will eventually help you increase the income that is coming into the household budget.
“I might be holding myself back”
This will take some serious insight to get to this conclusion but it is possible that the only person holding you back is yourself. If you already feel defeated and you believe that it is useless to go on, this is a clear sign that you are putting yourself down. You need to believe that better days are ahead and that your financial status will improve.
Of course this is easier said than done because a positive attitude requires a proactive effort on your part. You can start by changing your mindset about your current situation and putting on an optimistic approach of things. Once you start believing that your situation can change, you can move on and start plotting out your next steps.
Financial improvement is not a fairy tale that can only happen in movies. It is something tangible that people can achieve. Of course it does not come in a silver platter as you lounge around the house feeling sorry for yourself. It comes to those who work hard for it. You need to want it so much that you put in time and effort in actually achieving it. One upside to working hard to improve your finances is that you know just how much hard work it was and you get to be more careful with your future money decisions.