Tips to Foster a Positive Relationship to Achieve Financial Success
I remember being taught money management skills as a child. I was taught to budget my allowance for the things I wanted. I helped my mom write the bills every month and helped in managing our family’s checkbook. When my mom took sick I did all the grocery shopping. When my parents bought cars, we had conversations on how to shop around for the best deals and interest rates. I started working when I was fifteen and my mom made me save 15% of every paycheck. To this day, I still save 15% of every paycheck. It was ingrained in me to always save for a rainy day. I knew the value of great credit. I knew the opportunities ownership provided in creating generational wealth for my future generation. All this information and I still made mistakes.
As a child I didn’t have the latest and greatest so as an adult I always wanted the best right then and there. I initially got a credit card to pay for dental work while I was in undergrad. I instead took way too long to pay that balance and charged more than I needed to. I knew better. I didn’t do better.
Making misstates is a part of the game. To win the game you must figure out what is holding you back and how to overcome your shortfalls. Once given the knowledge to succeed you will always possess the tools to rectify your wrongs and get back on track. Using these five tips will help you get to where you need to be. In the words of Suze Orman, “you will never, ever, ever have financial freedom if you have debt.”
One of the few good things about adulting is that we can finally do what we want. For someone who lacks a positive relationship with money this mindset is detrimental. What good is it to purchase an outfit on impulse to only wear one time. You received absolutely no value from that purchase and that money could have gone towards much better use. If there’s a sale or an item you want to buy, wait until the sale is ending or at least 72 hours before you purchase your desired item. During your waiting period ask yourself questions. How are you living without the item? Is it a necessity? Do I have a better way to spend this money?
You are only financially successful when your assets outweigh your debts. Invest in obtaining good debts. For example, a mortgage is a great good debt. Yes, you owe money on your home but once that home is paid off you acquire so much more. Your home has equity and the ability to make you money (via Air BnB, rental opportunities). There’s a reason why many people don’t go out and purchase new cars. Whether you buy a Lexus or a Honda the car is still going to depreciate the minute you drive it off the lot.
Setting goals for accountability will ensure you stay focused on your plan. Accountability partners and measures are vital to financial success because they keep you in check. It takes one small step to jumpstart where you want to be financially. I like digital apps because they provide reminders, check-ins, and encouragement. One app that I am a HUGE fan of Qapital. There are many money saving and investment apps that you can use so do your research and get going on your goals.
What are your morals and beliefs as they relate to a positive relationship with money? What did your parents, guardians, family teach you? Did you grow up living paycheck to paycheck, below your means, or above your means? What, as a child, did you wish money could afford you but it did not? What lifestyle do you want for yourself and your family? Is it important to travel, invest in real estate, and/or purchase stocks? Are your grandparents or older relatives struggling financially because they did not plan properly for retirement? Reflect and answer all these questions because until you take a deep look in the mirror you will not end on the road you should be.
A diverse portfolio is the key to financial success. Gone are the days where we can add money to our savings accounts and hope for the best. The financial market is tricky and it is so important to have some money in a variety of avenues. A good mix of stocks, bonds, 401(k), IRA, and other investments will create a unique financial portfolio that will allow you financial fluidity.
-Chantelle