The turning point of the calendar year is traditionally a time when you feel inspired by the possibilities of a fresh start, a fresh start and the appearance of a positive change . It can be a moment that gives power, is energetic and supports life; it can forever change the trajectory to a more prosperous monetary life.
But as for any change, you want to take into account the advantages, disadvantages, the most unpleasant consequences and the most important transitions.
You can conquer your transition by synthesizing it into essential components:
1. As Simon Sinek says, "Start with Why." Understand not only why change is good for your life, but also that the results are so powerful and important that there is no other choice left. Start with a statement.
For example: I need to free myself of my debt over the next 12 months; or
I have to accumulate X dollars to pay a down payment on a house, or
We need to open and fund an education savings plan for my child by February 1st.
You get the exercise; therefore, in your heart and in your mind, something must happen. These are known as "your money needs".
2. The second step is to determine where you are now. If your "duty" is to pay off your credit cards, you must know exactly how much money you owe, to whom and how much money you have to reduce your debt. As an example of credit card debt, you may need to tighten your belt and change some of your spending decisions to a greater or lesser degree. If card payment is so important, ask yourself what you are willing to do to make it happen!
The same question applies to savings and investment objectives. If you can not earn more money, the cash flow must come from your current expenses and changes must be made to your spending habits.
3. Look back to look forward. Your beliefs, habits, and financial behaviors usually come from your childhood. What you have heard, synthesized and adopted from a very young age becomes your "normal" in adulthood. However, just because it's what you grew up does not mean that you believe it will not necessarily be appropriate or beneficial for you today. Consider that these beliefs, habits and behaviors may not support your adult values - or those of your partner, if you have one. If this is true for you, it's time to rethink your beliefs, change your habits, and change your behavior to activate your life and future goals.
4. Anchors past success. Can you recall a moment when you have made a change? It does not matter how small it may seem, but if you remember what you did and how your mindset affected the results, it can be a powerful tool for Successfully complete your New Year's resolution. Remember the feeling you had when you reached your goal; and use that feeling to engage you and motivate you to make the future positive changes and financial habits.
5. Consider roadblocks. If you have already followed a diet, you know that between the first day of healthy eating and reaching your goal, there will be a piece of chocolate cake, an ice cream dish, a chocolate bar or a bagel that will fit you well. the eye and asks you to eat it – trying to get you out of your way to success. Your ability to exceed this "demand" is the difference between success and failure.
These transition periods can be difficult to overcome, but if you know that this happens and you manage your expectations so that you do not get caught or disgusted, they are less difficult to defeat. This is where you need a support system. So when this part of your brain tells you to dive into a retail therapy or into this delicious cookie, you must be armed with the strength to resist. It is here that the presence of friends and professionals around you is essential.
Surround yourself with those who have the expertise and willingness to help you accompany and guide you through the process of getting where you want to go.
6. The rule of the small steps! The implementation of small steps leads to success and lowers the threshold of pain. Small steps are less intimidating and tend to be easier to consider; and so take action on. If you currently pay the minimum on the credit card each month, consider the following: Pay your bill every time you get paid, not at the end.
Taking this small step forward action can make a big difference. Find in your expenses places that are worth less for you than getting into debt. Start with the least painful areas. For example, set an entertainment budget of less than $ 100 a month, adding that $ 100 to your payment. Think about things you can change that will not kill you, but that will help you reduce your debt each pay period.
7. Errors are common. It is not uncommon to make mistakes. If you change your eating habits and aspire one day to the cake, nothing prevents you to leave the next day with the certainty that a misstep is not fatal. The same goes for changing the behavior of your money. You decide on your goals and the road ahead.
8. Enjoy the trip. Celebrate every success, every step forward deserves to be hailed. Focusing on what you did well is the next victory. Every dollar you pay or every dollar you accumulate brings you closer to your ultimate goal. Do not wait to celebrate! Build a victory over each other. You deserve it.
The resolution of your new year can be the beginning of a new life in money, richer and more useful. Awareness, action and support are needed to move from thought to action. I know you can do it!