Money Matters
We are debt free! This is what peace feels like amidst a tanking economy.
Given the unpredictable and ever-changing twists and turns of our world (i.e. COVID-19), there is no better time to stress the importance of handling our money wisely. Nobody likes unwelcome "money advice", but I believe it’s important to share some key lessons I’ve learned.
Here are 4 practical steps that have changed my relationship with money:
1. Set a budget
There's nothing more comforting (to me) than knowing exactly what's flowing in and out of my bank account. Sticking to a budget takes the thinking out of spending and allows you to freely spend within your own guidelines. My wife and I use the EveryDollar app to track our spending and haven't looked back. A budget is not meant to "restrict" you, but simply to hold you accountable to your own goals. Try it out and see if it works for you the way it did for my wife and me!
2. Schedule specific times to check your budget.
If you're like me, you're often wondering how much money you have left to spend in each category - every day. This is not healthy. Instead, trust that you've set your budget according to your needs and spend conservatively, knowing that you'll have the chance to review your spending habits when the time comes - the time you've scheduled!
3. Review your financial goals with your partner (or yourself).
This is not specific to married couples - but applies to everyone! Sit down and map out what you want your financial future to look like. Are there things you're saving for in the short-term or long-term? Any birthdays coming up? Holidays? Weddings?
I see too many people spend like they have a 6-figure salary when they actually have yet to climb out of debt. Setting goals in any capacity helps you to match your behaviors to your desires. For instance, if you want to take a vacation this year, you can start saving now by monitoring your spending in other areas. Your accountability partner is there to help hold you to these goals! (PS. Having a spouse is like having a built-in accountability partner, especially when your bank accounts are combined. Guess who else can see that not-so-sneaky $4 Starbucks latte you bought yesterday...)
4. Stop checking your bank account!
Perhaps this one is just for me, but it's SO real. In the age of immediacy that we live in, I have been guilty of treating my bank account like a social media app. There have been days that I've opened my banking app dozens of times, as if the numbers were going to change magically. This is not healthy. These kinds of habits show a destructive relationship with money. If this has happened to you, I urge you to delete the app entirely - at least for a period of time so you can disrupt the repetitive behavior. Set up auto-pay features for paying bills, and in other cases, force yourself to log on to your bank's website to check balances and make transfers.
It’s time to take a Stand. I hope these tips are of value to you. Trust me, any remedy is worth re-calibrating your relationship to your money and might improve some of your relationships with people along the way.
BONUS: Check out my wife’s blog post on this topic HERE!