2016! A new year with new possibilities. For many people, this is the time to resolve to spend less, save more, start budgeting, or live within their means.
Reining in expenses is work, takes time, and can be tightly entwined with emotions. How can you make this resolution a success?
Setting up a budget and tracking expenses are the mechanics of managing expenses. What makes this exercise successful, in my view, is understanding and accepting the emotional aspects of making permanent change:
Find your personal motivation. Individuals and couples who are successful at altering their money habits have a strong internal drive to make changes. Some people have external pressures, such as the loss of a job or the inability to pay all their bills. Others are motivated by the fear of not being able to retire. Some are tired of feeling out of control and want financial independence. Regardless of the roots, the impetus to change comes from within.
Remind yourself (regularly) this is a choice. You can choose to continue to overspend and worry, or you can choose to take action and succeed. Whichever path you take, it is your personal choice.
Acknowledge you can’t have it all. If you could have it all, you probably wouldn’t be making changes. Accepting your spending limitations is painful. You need to decide what is most important and make choices you many not want to make. A few years back my family needed to cut back on spending. One decision was to let the housecleaner go. Nobody liked this choice, but the alternative was for the kids to give up horseback riding lessons. The lessons won out. This decision still provides a twofold learning opportunity for the kids: 1) how to clean a house, and 2) how to make spending decisions.
Recognize this is work. And it takes time. If you want to succeed, you will need to decide setting up a budget and regularly comparing your spending to your budget is worthy of your time and attention. Since there are only so many hours in the week, you may need to forgo other more enjoyable activities. There are software programs and money management apps which help automate the process, but you still need to regularly review your spending activity and make adjustments.
Get help. Many people are able to create a budget and stay with it for a few months. Then it becomes difficult to stay motivated. Having a support system can help create long-term change. This is especially true for couples who don’t agree on money. Financial therapists and financial coaches specialize in individuals and couple’s unique relationships with money. To find a therapist or a coach, you may need to do an internet search, check references, and ask people you know and trust for recommendations.
2016! A new year with new possibilities. If your resolution is to spend less, save more or to set up and live with a budget, I believe you can succeed. I believe a large part of success is accepting the mental and emotional work that goes along with budgeting.
This blog is published to provide you with general information only, and is not intended to provide specific or comprehensive advice. Money Care, LLC encourages individuals to seek advice from competent professionals when appropriate.
