It's another year, another series of resolutions. Each year many of us make goals to lose those extra pounds, spend more time with our family or just take time to enjoy life more. One goal that often gets put off year after year is our financial fitness. Cognitively, we know financial fit- ness is a simple math problemspend less, save more and get out of debt. It’s a problem so easy to quantify, and yet, incredibly difficult to accomplish. Money is more than a means of paying for things. Money is emotionally tied up in our personal history, memories, habits and reward system. Often, we forge ahead on the problem and settle on a budget – an unrealistic, overly stringent budget. And it fails. And we give up. So, how should we start?
BUDGETING
First, we have to realize what money means to us. What role has it played in your life historically? Was spending highly encouraged in your house? Or was money never dis- cussed? Do you enjoy spending money, or does it bring you stress? Do you think your attitudes toward money are completely healthy, or should you step back to re-evaluate its im- portance in your life?
Once you walk through these questions, you can anticipate emotional roadblocks and approach your fiscal fitness goals with a much greater probability for success. Start by categorizing your spending habits for at least three months. Find out where your money is going; you might be sur- prised. Is dining out a larger portion of your spending than you thought? Or is your daily coffee habit adding up to a surprising annual amount? After you have a sense of what you spend, build a budget.
First, we have to realize what money means to us. What role has it played in your life historically? Was spending highly encouraged in your house? Or was money never dis- cussed? Do you enjoy spending money, or does it bring you stress? Do you think your attitudes toward money are completely healthy, or should you step back to re-evaluate its im- portance in your life?
Once you walk through these questions, you can anticipate emotional roadblocks and approach your fiscal fitness goals with a much greater probability for success. Start by categorizing your spending habits for at least three months. Find out where your money is going; you might be sur- prised. Is dining out a larger portion of your spending than you thought? Or is your daily coffee habit adding up to a surprising annual amount? After you have a sense of what you spend, build a budget.
