Which Spending Kind are you? Tips for Reaching Your Financial Goals

Some of the most important life lessons we will ever learn come from our parents. These lessons range from simple things like using a knife and fork to virtues like honesty, kindness, love, and respect. Financial baggage is one of the regrettable bad habits we unintentionally acquire in our early years and bring with us into adulthood.

It can be an expensive journey to that realization. Being raised by parents who frequently indulged in pricey treats may set you up for a spendthrift lifestyle that leaves you deeply in debt. Comparably, when you’re paying your own bills, you might experience a similar level of denial as someone who lived in a home where debtors frequently left cut-off notices and called.

Financial anxiety is rife

The first thing you should do if you’ve inherited bad money habits is to get financial counseling. You don’t have to pay anything for this, either. After receiving money management tools from a qualified professional, including managing debt, living within your means, and setting financial goals, you might be pleasantly surprised at how simple it is to transform your unhealthy relationship with money into a much healthier one.

Unpack your financial burdens

Did any of these unhealthy behaviors come from your family? To end the cycle, try these easy steps.

1. You were born with financial anxiety

You two never had a conversation about money, and neither of your parents ever gave you any advice. You feel lost and overwhelmed right now, and you are finding it difficult to meet your financial commitments.

How to make that different:

• Empower yourself

Speak with your financially astute friends. You might feel inadequate and ashamed to seek out financial guidance, but it’s acceptable to do so. Alternatively, look for a financial literacy education program online.

• Create a budget.

Know exactly how much money you bring in and what your fixed costs are, such as utilities, food, entertainment, travel, cellphone, Internet, and rent or a bond. Gaining control begins with gaining a clear understanding of where your money is going, which may be rather shocking at first.

2. You inherited a careless financial attitude.

You spend money as a reward for successful results as well as when you’re down and need a pick-me-up because you want instant gratification. The high you get from shopping eventually leads to a crash, though, because this implies that your credit cards are always fully utilized.

How to make that different:

• Count to 10

Give yourself a checkup, stop, and give yourself a day off. Your brain will start to release endorphins as a result, causing you to relax. You need to modify your response to “I’ve got to have it” because, over time, neural connections have formed that cause you to react that way right away.

• Consult a psychologist.

You are gaining some satisfaction from what you are doing, which is a learned behavior. As a result, you could feel as though you’ve lost your identity if you don’t get this satisfaction. You must investigate the underlying problem. Which factors act as triggers? Why is this necessary for you? Counseling can help you stop that behavior, though it might take some time.

3. You inherited financial anxiety

You learned to associate money with fear because meeting the mortgage and paying the bills caused a lot of stress in your household. These days, regardless of your financial situation, you obsessively cut costs and are unable to spend money without experiencing anxiety and guilt.

How do you make that different?

• Take small steps

Without putting yourself in an impossible situation where you have to change your behavior, you can gradually come to feel comfortable with spending money. To avoid wasting your savings, choose an item that you truly need and want, then put some money aside just for it.

• Reward yourself 

When you reach certain financial milestones, you must reward yourself. This could be as simple as getting a massage or going out to dinner and a movie with friends. To help you overcome your feelings of guilt and anxiety, create a vision board.

4. You inherited financial denial

Debt was the norm and there was no such thing as building wealth in the household. So, similar to your parents, you basically live from moment to moment rather than saving for the future, paying off the minimum amount due each month, and relying on credit to get by.

How do you make that different?

• Consult a financial advisor

One cannot continue to live this way. It shall ultimately topple, much like a deck of cards. To lower your debt, a financial counselor might be able to bargain with banks.

• Shop Around

Look for a credit card that offers more benefits, like 0% interest, no annual fees, and interest-free periods. Choose a straightforward card that you use only when necessary, devoid of any bells or whistles. Furthermore, you should always repay more than the minimum amount. Your debt repayment time may be cut in half, even if you only make an additional R20 payment.