Mind over Money

Don't let anxiety and uncertainty cloud your journey

Why is it your mind can be such a huge roadblock in your financial journey?

Photo by Miglena Georgieva on Unsplash

The path to financial wellness is a journey, not a destination. It’s a trial marked by challenges, setbacks, and triumphs. Along this path, our minds often play a significant role, both as our ally and our adversary. By working to overcome anxiety and uncertainty, we can make better decisions that will have a compound impact later on in the journey.

There are going to be times when you feel discouraged while working on your personal finances. You might uncover some uncomfortable truths about your spending and saving habits, and you might be tempted to give up. The key is to keep at it, even when things get tough. Remember that you are not alone with this journey. With each speedbump take it as an opportunity to learn and develop. Our journey is long, so picking up skills for your toolbox is never a bad idea.

In this post, I thought I would highlight just how mentally strenuous personal finances might be for people. As everyone’s journey is different, so are the variety of fears and holdups people might have about their personal finances.

The Fear to Start

Create a Ritual

Sometimes, even just the thought of creating a budget can seem insurmountable. Finding all the relevant details, choosing a method, and (potentially) needing to make some assumptions can lead to a full night of work. I have found that creating a ritual around working on your personal finances can be incredibly fruitful. For example, I like to get takeout, light a candle, and pour some tea to create a relaxing environment while I work on my finances. At this point, it is a comfortable environment that I look forward to and really cushions the blow on the not so nice months. When you choose to start your journey and work through some of these methods, set your own ritual that builds a comfortable workspace for you.

Break it down!

Breaking down your journey into smaller, manageable steps is a powerful strategy to overcome anxiety and stay motivated. Instead of focusing on the daunting end goal, concentrate on achieving mini-victories along the way. To start, maybe set a task of figuring out your monthly income, then start tracking subscriptions and other monthly expenses, finally you could set a goal of coming to an educated estimated about your variable expenses (utilities, food, etc.). Celebrate each accomplishment, no matter how small. This approach not only makes your journey less intimidating but also provides a sense of progress and satisfaction, keeping you inspired to continue moving forward.

Starting is half the battle

When you are first starting out on your journey, it might seem like progress is slow. It could be that your savings aren’t accumulating the way you had hoped; or maybe there are expenses that are hard to shake. However, you are setting good habits that will eventually just become reflexes.

The best time to start was yesterday, the second best time is now

You can think of your personal finances in the same way as you would learning any new skill. You might fall off a bike the first time you try to ride it or you might stumble over your words during a speech. Similarly, it's perfectly normal to make mistakes when managing your finances. The key is to learn from those mistakes, pick yourself up, and keep moving forward.

The Fear to Know

Working through some uncomfortable truths

As you start to make a budget, you might uncover what I call “uncomfortable truths”. These uncomfortable truths could range from seeing how many subscriptions you have to realizing your savings might not be where you thought they were. As discouraging and frustrating as these truths are, the reality is we cannot correct what we do not know. If something does not sit well with you within your personal finances, only then can you work to resolve it.

Growth starts slow, don’t quit!

While early financial growth is powerful, it's important to remember that it's a marathon, not a sprint. In the initial stages, your gains might seem modest. You may only see small increases in your savings account or investment portfolio. However, this is a crucial period for building a strong foundation. It's during these early years that you're establishing healthy financial habits, learning about budgeting, and understanding the basics of investing. While the progress may be gradual, it's laying the groundwork for significant future growth. By consistently saving, investing wisely, and staying disciplined, you'll gradually accelerate your financial journey.

Having some tough decisions to make

Sticking to a budget often requires making tough choices. It's a constant balancing act between immediate desires and long-term financial goals. Deciding whether to skip a weekend getaway or cancel a subscription service can be challenging, especially when faced with limited funds. These decisions, while difficult, are essential for maintaining financial stability and a natural part of the personal finance journey. The key is to prioritize needs over wants and to find creative ways to cut costs without sacrificing too much enjoyment. By making these sacrifices, you can pave the way for a smoother journey and achieve your dreams, whatever they may be.

Sometimes it feels like there might not be a right answer (or the “right answer” really isn’t sitting with you). I would remind you again to make decisions that you feel comfortable and confident with. Don’t let anyone tell you it is as easy as just cutting expenses and saving more — it isn’t. For a lot of people, it is a mental battle just to get to that place. The best advice I can give is to try to strike a comfortable balance between short term fun and long term goals. You want to be filling both proverbial piggy banks in a way.

The Fear of Failure

There will be some down months

Even the best businesses have good years and bad years. No one can 100% stick to a budget, that is why it is just a forecast. Just as successful months bring a sense of joy, realize in the downtime that the moment fades. Instead, acknowledge the whole journey you are heading down and keep moving!

In my personal finances I create a monthly budget, however I like to look at quarterly trends (3 month intervals). This way if there was a bad month, it can be “buried” in an average. This also can help you get a sense of the big picture. Seeing what your savings rate looks like quarterly can give you a more realistic snapshot of if you are meeting your goals.

Mistakes are just a part of life

Think of any skill or talent you have. I am sure to get to the level of success, you learned from many mistakes along the way. Imagine your personal finances in the same way, just that you are at the beginning of your lessons. You might make a bad investment, use a bad bank, or anything of the likes; but that shouldn’t stop you. Why was it a bad investment? What did you not like about the bank? Instead turn each “mistake” into a learning experience to take forward.

Experimentation

I love the versatility of personal finance. There is no “one size fit all” option at our disposal. What works wonders for one person might fall flat for another. That's why it's crucial to explore multiple methods and find what resonates with you. Who knows? Maybe a method you try makes a comeback later on in your journey.

So, don't be afraid to try different things. Experiment with budgeting methods, investment strategies, and saving techniques. What matters most is finding what works for you and sticking with it. Remember, there's no right or wrong way to manage your finances. The best approach is the one that empowers you to build confidence and comfort down your journey.

To Summarize:

Having confidence and comfort within your budget is a powerful feeling. It's the peace of mind that comes from knowing your finances are under control. When you've created a budget that aligns with your values and goals, you can make informed decisions without fear or stress. Whether it's a spontaneous dinner out or a planned vacation, you can indulge without guilt, as long as it fits within your budget. This sense of control empowers you to achieve your dreams, no matter what they may be! A well-managed budget is not a restriction, but a tool that liberates you from financial worry, allowing you to live life to the fullest.

Remember, your financial journey is unique. Embrace it, and let it empower you.