breaking psychological barriers with money

Breaking Psychological Barriers with Money

financial anxiety financial health financial rhythm financial well-being value based budgeting Sep 15, 2021

Why does it always feel like money is such a struggle? Whether it’s an unexpected bill that just popped up or an emergency that you never saw coming. Or maybe it’s a more guilty pleasure, like late night online shopping when you know you should be saving. It can feel like money is flying out of our hands faster than we can earn it. Can you relate?

 

Money doesn’t have to feel this way. Yes, we will always face financial difficulties, but the most important fact to remember is that money is a tool that works for you. Money doesn’t have to control you. If you find yourself facing financial struggles, as all of us do at some point in life, the best thing you can do is learn the strategies you need to get back on track and turn financial adversity into opportunity.

 

What to Do When Faced with Financial Adversity:

 

As we’ve talked about extensively, your foundation with money is crucial to creating a financially free and fulfilling life no matter your income level. Your finances start with your mindset. When you have a healthy mindset with money, you’re in control and ready to face whatever financial situations you find yourself in. Remember, your finances are built on a foundation of your values. If you find yourself struggling with money, the first place to start is your financial foundation.

 

  •  Use a value-based budget that aligns with your unique goals and values in life.
  •  Create healthy financial habits like checking in on your finances monthly and saving toward goals that you truly value.
  •  Build a support network of friends and family as well as financial professionals when needed who act as good influences on your money habits and support your financial journey.

 

Breaking Psychological Barriers

 

Even when we have the best intentions, we all still have moments where we mess up with money. Below are some common money attitudes that hinder good money habits as well as tips on how to get back on track and shift your mentality.

 

Impulse Spending

 

We’ve all been guilty of spending money when we hadn’t planned on it. You see the new shoes or product you just have to have, and you find yourself sliding that card without truly thinking through the decision. Spending impulsively is all about instant gratification, to the detriment of your goals and long-term financial planning.

 

Overextending

 

Or maybe you find yourself in a cycle of saving everything and strictly sticking to your goals followed by periods of spending beyond your means. Either you’re saving every single penny you have or you’re spending money like you just won the lottery. It’s a state of financial extremes that comes from a place of worrying you won’t have the funds later to get what you need. Overextending your finances can also happen when your budget doesn’t leave room for your values or things you truly need.

 

Avoiding

 

Sometimes, money mistakes happen simply because you don’t know where your money is going. Maybe you’ve been avoiding checking in on your budget monthly or have a habit of avoiding looking at your bank account balance. Money can be a difficult subject to deal with, but it’s crucial to get clear on your budget and spending.

 

Here are some steps you can take to get your mindset back on track and turn your financial struggles into better money habits.

 

  1. Don’t beat yourself up. Everybody makes mistakes on their path to financial success. Becoming financially successful is a journey, and the goal is to learn along the way. Forgive yourself for not sticking to your goals, forgetting a bill, or spending money in a way you hadn’t planned. You’re not alone.
  2. Your response is more important than your mistake. Money is all about figuring out what works best for you and what contributes to your values. Instead of feeling bad about your money choice, choose to respond by figuring out how you can get back to your values and do better next time. In this way, you’re actually learning how to budget even better and form a healthier relationship with your money. With the right attitude, you can transform what feels like a failure into an opportunity to align your spending with your values even better in the future. Money management isn’t about perfection, it’s about learning and resiliency.
  3. Get back to your financial foundation. Remind yourself why you set your budget and money goals. It’s all about your values. When you focus on what you value doing most with your money, it helps you avoid needless spending or moments of card swipe weakness. You’re focused on the value money brings you long term instead of instant gratification. Shifting your perspective can make a big difference in your actions.
  4. Find the support you need. If you see a pattern in your spending you’d like to change, or if you’re feeling overwhelmed by your money situation, find the resources you need to help you change your mentality. Whether that’s learning new budgeting skills, finding educational resources about money, seeking out like minded friends or an accountability partner, or getting professional help to see your finances more clearly, take action to make a change to your money habits.

 

No matter what psychological barriers you’re facing with money, remember that you can take your financial struggles and turn them into opportunities to build a better financial future. When you see your money mishaps as places where you can grow and learn, you’ll find yourself less stressed about mistakes, more focused on building a better financial future, and sticking to your money values more effortlessly. Forgive yourself and move forward by shifting your perspective. Financial success and independence is all about the journey, and learning is a part of the process.

 

If you find yourself stuck or repeating the same patterns or behaviors in relation to money and want to break through the barriers, I would love to work with you to get you on the right path.  

 

Photo by lucas souza from Pexels

 

Questions: email [email protected]

Mariah Hudler, MSW, MBA, CFT-I™ is a therapeutically informed financial wealth & wellbeing coach. She works with individuals, couples, families, entrepreneurs, groups, and organizations to make Wealth & Wellbeing a joyful part of life.

Disclaimer: This blog is for education only. Please consult with a qualified professional when you have any questions about your personal financial, tax, or legal situation. Information contained in this post is for informational purposes only and not intended to replace professional advice.

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