Is 2019 your year to get your finances in order? If you’ve resolved to shape up your budget, save more, or spend less, don’t forget that financial health is not only about math and better planning. Your financial health is tied to your emotional health, in more ways than you’d imagine. Take a few minutes to answer the following and learn about some of your emotional barriers to achieving the financial goals you’re striving for in 2019.
What was your family’s attitude toward money and style of managing money? What role did money play in your early life, in regard to where you lived, how you compared to your friends? Did you grow up learning that money was stressful, scarce, abundant, desirable, unimportant, etc.?
Remedy: Make a list of your ideas and attitudes about and toward money. For each one, identify the ways in which it encourages good financial habits, and also ways in which it presents a barrier toward developing such habits.
How confident are you in your ability to manage your money and make solid financial decisions?
Remedy: If you feel vulnerable around managing money or making financial decisions, seek out an adviser or mentor who can coach you through the basics. There are also numerous resources online. For example, the company that holds your investments likely has free resources, and there are free courses on the fundamentals of money management, as well (see, for example, https://www.open.edu/openlearn/money-management/managing-my-money/content-section-overview?active-tab=description-tab). Additionally, many counties have free programs, including access to a financial coach, to help you get started (in Denver, see https://www.denvergov.org/content/denvergov/en/human-rights-and-community-partnerships/our-offices/office-of-financial-empowerment.html). Many people feel embarrassed or ashamed about their finances, and assume that everyone else has this area of life figured out. Guess what? They don’t. Anyone coaching you through this will have seen others in worse financial situations than you’re in.
How overwhelmed are you by the idea of becoming financially healthy, or reaching your financial goals? In other words, do you feel like your goals are possible, or does the thought of doing anything more toward them make you want to crawl under a blanket?
Remedy: If you have taken few or no steps to manage your money, you may feel as though the journey to financial health is an impossible one. Just like with any goal, the key is to have an end point in mind, but to break the process down into small steps that are S.M.A.R.T (specific, measurable, attainable, realistic, and time-limited). Initial small steps may include printing your bank statements to help you add up your income and expenses each month, or finding a local financial help organization and making an appointment, or setting up a direct transfer to a savings account each month. Each small accomplishment will add up and help you gain momentum, and you’ll rocket toward your goal faster than you’ve thought possible.
Do you have emotions or behaviors that get in the way of making good financial choices (and maybe interfere with other choices, as well)? For example, do you make impulsive purchases? Do you shop when you’re depressed? Do you struggle to organize your thoughts in order to make and stick to a budget? Do you spend too much money on substances?
Remedy: If you observe these behaviors in yourself as a pattern, or with some frequency, they may be related to a mental health concern. A therapist can help you identify and figure out ways to reduce the impact of these issues, so that you can move toward your financial goals.
Setting and making progress toward your financial goals in 2019 will help you feel more focused, capable, and able to conquer other key areas in your life. Success will result when you address the barriers and struggles, instead of avoiding them. Happy budgeting!