Improve Your Financial Life in Three Steps
Ever reached into your bowl of chips while watching a movie to find you had eaten them all without even realising? Money mindfulness prevents the same thing from happening to your money!
Mindfulness is defined as being conscious or aware of something. Money mindfulness means being aware of every cent you earn, spend and save – and doing so consciously.
Money mindfulness is knowing exactly how much each transaction made during the day costs – and whether it fits into your budget, and also how the money choices you make impact your financial future – and how it makes you feel.
Use these three steps to become more mindful of your money
Become aware of your beliefs about money
It is important to become aware of the beliefs we hold about money, as these beliefs affect everything we do with our money. For example, if you believe that money is the root of all evil, you may resist saving. If you believe that there is never enough money anyway, you might feel it won’t even help to have a budget, or you might feel anxious and fearful every time you buy something.
Become conscious of your daily spending
Becoming more money mindful by tracking your spending on your phone or in a money journal is a life-changing practice. As you become conscious of where each cent is going, you also uncover the money decisions you tend to make and the money habits you have.
With a budget that makes provision for consistent savings, it easier to make the right decisions day by day and to cultivate new habits that contribute to your financial success.
Take control of your money choices
Think about your recent money choices and how they made you feel. Perhaps you have saved some money and feel proud. Maybe you paid for emergency repairs with a fast little loan and feel anxious about the repayments. Or perhaps you splurged on a luxury item and now regret it.
Being aware of which money choices feel good makes it easier to consciously make better choices in future. For most people, eliminating or reducing unnecessary expenses, sticking to a budget, having an emergency fund and making provision for retirement, generate positive feelings and build financial security.
Remember, your financial coach is ready to guide you in becoming more mindful of your money and in improving your financial life, one money decision at a time.