The following blog post is part of The Road to Financial Wellness Blog Tour. Over a period of 30 days, the Phroogal team will go to 30 locations to raise awareness about financial empowerment. Today they will be in Los Angeles! Our goal is to help people learn about money by starting the conversation. We understand that local conversations can help bring about national awareness.
If you’re like most people, you may not have the best relationship with your money. It might be one of those love-hate type things. Or maybe you have a “shove things underneath the rug about until shit hits the fan” kind of mentality. I may not have pulled off an amazing feat as some of those money stars out there (whom I highly admire) such as paying off an huge amount of debt or be on the path to retiring by 35, but one thing I have managed to get right now that I’m in my early 30s is to develop a healthy relationship with money. It does require a little bit of time and work, though. Here are a few ways to stop fighting with your money and start living the life you want:
Find where you stand money-wise.
Figure out how much you need to bring in each month to make ends meet and what your money pits are. Financial wellness is a combination of being honest about your money issues, developing good habits, and being aware of the current relationship you have with money. For some money is a marker of success or self-worth, but the truth is that money is not a need. It is merely a tool to help fulfill needs. So really take a hard look at your expenses, money woes, and habits with your finances.
Have a budget.
You really need to track your expenses to see where your money is going and what problem areas you have. This will help you treat your finances similar to running your own business, meaning you have to keep an eye on the bottom line (your savings goals), and make sure the inflow of cash is greater than the outflow (living within your means). The good news is that there are plenty of free tools out there to help you track your expenses. You can start with Mint, Level Money, or LearnVest budgeting apps.
Know your values.
I was raised by a single mother who went to nursing school while working full-time at a nail shop. When I was a child every Sunday we had a tradition where we’d go to church followed by fun and games at the local Golf ‘n Stuff. It was my favorite pastime, and something I looked forward to every week. When my mom completed her studies and got her nursing degree, she began working crazy hours. As a result, it made it harder and harder to make it to Golf ‘n Stuff every Sunday. As a child I equated having more money with having less time. I’ve forever since valued my free time. I love having time to write, dawdle, and do whatever I please. I would much rather have more free time than accept a promotion that required more stress and hours. It’s easier to make decisions if you know what’s important to you.
Develop a Cheapster Style.
Developing a style figuring how what your money superpowers are as well as your money kryptonite, and creating a method of spending and saving that is aligned with your natural inclinations. This spending a fair amount of time figuring out what works best for you, whether it’s tracking everything with an app, playing The Great Frugality Game (where you turn saving money into a challenge), or automating your savings. In my years of experimenting with budgeting apps and excel sheets to track expenses, I’ve found that what works for me is allocating X amounts on different debit cards and automating my savings.
What’s your Cheapster Style? What are the things getting in the way of designing your own life?
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