Most of us want to see changes with our money. We want that Financial Freedom. Personally, I'm not a big shopper but I am consciously not buying any clothing or shoes for at least a few months. I stick to my budget and afford what I buy but... I realized I was buying items I really didn't need and had too many clothes in my closet. I also want to "save up" for a purchase and it feels good to keep saying NO right now. With that being said, it is a money habit I have to change. Is there a money habit you know you want to change? This is just part of your Personal Financial Plan.
Accountability
There is no question that when you are starting to do something new, doing it with someone or a group will increase your chances of success SIGNIFICANTLY. There is a reason weight watchers, personal trainers, therapists and coaches are in business. Money is no different. Get the support to spend differently, learn about your investments and save more for retirement. It can also be as easy as finding a friend to work with you. Why make it so hard for yourself?
Do One Small Thing
If you want to buy a home and realize you need to save at least $100,000 just for the down payment, you are going to get discouraged rather quickly. Instead focus on saving $500 per month. That seems manageable, doable and you will see results right away. A client I worked with this week changed her cell phone plan, reduced her renter's insurance and changed her 401k contributions. All small task items, but she IMMEDIATELY felt better and could focus on her bigger goal.
Do a 30-day challenge and only do ONE thing
I have been reading about the 30 day challenge for some time now. It can be applied to changing your money habits as well. Pick one – just one - that is easy to do but will allow you to see money changes right away.
Some suggestions:
* Only use cash * Write down every dollar spent. Do it the old-fashioned way with pen or paper or use an app such as envelopes. * Open every statement the day it arrives in the mail. * Log onto your bank and investment accounts every day. * Report your money progress in a public forum such as Facebook, Twitter or Linkedin.
Pen to Paper
Through many of my seminars that I've given, I realize that wonderful money success happens when my clients actually write down money goals. It can be as easy as writing where you would like to be in 3 months. It can be a short manageable to-do list of expenses you will cut. It can be the steps towards opening a mutual fund. Write the money habit you would like to change, when you would like to start seeing monetary results and how much you would like to earn or save.