What’s your kryptonite when it comes to how you manage your money?
What’s your biggest financial temptation that gets you to overspend every single time?
You may or may not know the answers to those questions, but one thing you do know…mismanaging money can lead to debt. One of the most common frustrations I hear about debt is: “It’s so hard to pay it off!” And I completely agree! It’s incredibly hard to pay off debt when you have interest piling on at the speed of light. However, what we should be asking ourselves is, “How did I get here in the first place?” A lot of our focus is on the “consequences” of our mismanagement and we never look at the mindset that got us there in the first place.
When you understand the reasoning behind your spending habits, your eyes will be opened and you’ll start to realize that you haven’t been using your money with purpose and intentionality.
In order to truly transform your relationship with money and manage it well, you’ll need to learn:
- to be intentional with your money and your spending…
- to have self-control over the temptations, and…
- to retrain your mindset to stay focused on the prize (your goals)!
How to be intentional about spending money
I know what you’re thinking, “Aren’t you supposed to be telling me NOT to spend money right now?” Not at all! We have to spend money in order to live, work, and play, but it’s HOW we spend our money that makes the difference.
Being an intentional spender means that you have a clear purpose for a transaction. It’s not made on a whim and it’s not made superficially. You gave this money a specific job and it was used for that purpose.
For example, when you save money to go on a trip to Disneyland, you’re intentionally putting money aside every month to be used explicitly for and during this trip. You don’t take money from this “bucket” to pay for a dress you saw that you could wear on a date next week. This money has been intentionally saved for this trip.
Another example is when you have a line item in your budget for clothes. Each month you add some money into it for the purpose of buying clothes. You don’t take from this “bucket” to get takeout one night after work. This money has been intentionally saved for the purpose of buying clothes.
Spending intentionally is about using money in a way that SUPPORTS your goals AND your well-being.
Remember, achieving financial wellness is a big factor when it comes to your overall well-being. If you’re in debt and spending is all over the place, you’re going to feel things like guilt and anxiety, which in turn will affect your health. When you’re intentional about taking care of your wallet, your wallet will start to help take care of you.
What does it really mean to have financial self-control?
Financial self-control is about keeping your focus on the goals you’re working towards and not getting distracted by superficial wants that can derail your efforts. Without financial self-control, we kind of act like a fox in our own hen house. We start to spend more today thus stealing from our future and our family’s future.
And I know…self-control sounds totally restricting and rigid, but, in actuality, it provides you with MORE freedom and MORE opportunity for financial achievements. A well-managed wallet equals a well-managed life…with you as the manager!
For example, think of what happens when it comes to “lifestyle creep”. You get a pay raise and all of the sudden you might be going out to eat more, choosing fancier clothes, or getting a brand new car. The self-control goes down, your well-managed wallet turns into a well-worn wallet, and you start to allow for more indulgences. Those indulgences over time are your wallet’s kryptonite, and you won’t notice the negative effects until the habits are long set.
Intentional spending helps you to achieve financial self-control, which helps you to boss up your money management skills with confidence!
Dream big, be intentional, stay focused!
Now is a great time to let that all sink in and reflect a little bit:
- What would a stress-free, intentional-spending money life look like for you?
- What are some of your personal and financial dreams that you’re working towards?
- Travel
- Owning a house
- Retiring somewhere specific
- Owning your own business
- Making a big charitable donation
- Now, what are some of your biggest temptations that are roadblocks to you achieving the above?
I highly encourage you to journal your financial journey and start with the reflection prompts above. The more you understand what you and your money are working towards, the easier it will be to dream big and stay focused on those dreams.
Spend smart by aligning your habits with that vision
Now that you’ve done some journaling on your financial journey, take it up a notch and start making the necessary adjustments to your spending habits and your budget.
Remember, these small changes might not seem like much today, but just you wait! Small habits done consistently will yield amazing results! I love showing the example below of doubling pennies for 30 days. It’s crazy that a single penny can build up to over $5 million!! And I want you to note something: it really doesn’t start skyrocketing until around day 22. Establishing healthy money habits takes time and patience, but the pay-off is HUGE!
A little encouragement to get you moving
If you’re unhappy with your relationship with money, if you’re tired of feeling guilty about your spending habits or the debt you’re in, then take an honest assessment of where you’re at right now. No one is perfect with their money. Everyone has fallen victim to spending too much and getting into debt, but it’s what we do when we finally want to make things right.
Those dreams and goals you wrote down in your journal, revisit them as often as you need to in order to stay focused. Put them on post-its and put them around your home. Put them as calendar reminders that pop-up every day. Make a vision board and place it somewhere that you’ll see it constantly!
Understand that unlearning the habits that got you here is going to be hard work. Just think: could you unlearn how to ride a bike? No! It could be years between riding a bike and you could easily pick it right back up again. Same with these habits. You could easily pick them right back up if you’re not practicing intentional spending and financial self control.
So, when you feel financial temptations and old habits start to sneak in and self-control fading away, I want you to STOP, pause, close your eyes, breathe, and count to 10. During those few seconds, focus on your dreams and goals, Remember what you’re working towards. Meditate on them, pray for strength and clarity, acknowledge the weakness you’re experiencing, and decide to finally be the boss of your wallet! You’ve got this!!
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