5 Tips to help develop a positive money mindset
When it comes to finances, especially where debt is involved, a positive mindset is crucial to your wellbeing.
Often, we attach positive feelings to all income we receive and negative towards all compulsory expenses, such as debt repayments.
This causes havoc with our finances as negative reactions to our financial standing can have negative effects on it.
Here are 5 tips to develop a positive money mindset.
- Be in control and respect your budget
Whichever way we manage our finances, a budget should be set and ultimately, set in stone. Learn to live within your means. Ensure that all expenses are dealt with and split your remaining spending portion into the number of weeks or days before payday. When you have your daily or weekly available budget, only give yourself access to that amount every day or week. When it’s depleted, accept it and wait until the next day or week to give yourself access to the new budget. In doing this, you will train yourself to become responsible with your money, and once that’s achieved, you will feel better-off than you ever did.
- Set financial goals
Money will become fun once you start setting goals and reaching them. This is particularly fun when working in sales or owning your own business. Take the average revenue or income you make and set a goal for the next month. Try different techniques and until you reach your goal and increase it with any increment you are comfortable with. Stay determined and focused on your goals at all times.
- Visualise
Speaking of determination and focus, there is no better way of achieving this than a visual representation of what you are aiming for to help you achieve your goals. Create a vision board containing images and words that represent the end result of your goals. Be it your favourite sports car, ideal home, family life etc. Create your ideal financial situation visually and look at it with ambition every day.
- Stop worrying. Period.
Punish yourself every time you start worrying about money. Be creative with your punishment, however, as this can help you become more stable financially. For instance, every time you think negatively of your money, deposit a weekend’s worth of spending money into a “worry bank” (something like a sealed piggy bank which you have to break to gain access to your money). In this way, you are forced to save and, if disciplined enough, will start eliminating all negative thoughts.
- Kick debt to the curb
One of the main contributors to negative money thoughts is debt. Make plan now to eliminate all your debt completely. Set up a payment plan, over pay on one bill every month until it’s paid up and move to the next one or if your total debt amounts to R60 000 or more, opt for voluntary surrender of estate, which will allow you to pay back less on your debt for a shorter time period, completely interest free. For all debt advice or procedures such as voluntary surrender of estate, be sure to contact Senator Counsellors.
By following these practical steps, you will surely become a happier consumer and even start living a prosperous life.