It can be tough sticking to a financial commitment you’ve made. Whenever you start something new, the beginning stages are always some of the most challenging. If you’ve ever gone for a jog, then you already know the first five minutes can be the hardest part. Once you get going, however, you may find that you are able to move more easily and freely. The same can be true with making a financial commitment. Once you start and get past the immediate hurdles, it will likely be easier to keep going and meet your goals.
Baby steps
How do you eat an elephant? One bite at a time. The way to approach a major change in any part of your life is to start small and take it one step at a time. When talking about your finances, this can mean making one simple change every day, week or month until you achieve your spending and saving goals. For example, if you want to reduce how much you spend on eating out, consider cutting out your morning coffee and make your hot beverages at home instead. This one small move can add up to big savings over time. After you’re comfortable enough with this change, add another.
Stay positive
One of the most important parts of making a financial change and sticking to it is staying positive. Remember that your perspective on a situation can change, so if you are feeling negative about going over your budget or you forgot to save last month, don’t throw your goals out the window. Get rid of any negativity by surrounding yourself with positive influences and reminding yourself of what progress you may have already made. If you’re just starting out, a positive attitude can help you get through changing your spending habits. Always remember that you have already accomplished the first step by creating a financial goal.
Understand your habits
When you want to keep a financial commitment, it’s important to get a handle on your money management habits. Do you track your spending? Have you ever made a budget before? If you’re a newbie to money management, you may first need to get to know your financial habits well before you can expect any real changes to occur. You can easily do this by taking a look at how much you spend. Were you able to pay all your necessary expenses like your cellphone bill or buy school supplies, or did you blow your cash on a new video game? Your spending record can tell you a lot about how you prioritize expenses.
Tell someone
If you want to commit to a budget, tell someone about your plan. This can not only give you some accountability, but also your family and friends can help you reach your goals. Be wary of spendthrift friends who may not be as financially conscious about their money management, as they could influence you to overspend. Instead, enlist the support of people you know will be able to help you and be a positive influence.
Monitor and revise
As you start your new path to change your money management habits, be sure to review and revise as you go along. You might find that your initial budget doesn’t quite work and need to make adjustments in order to remain on track and meet your goals. Revising your plan can ensure you don’t give up on your financial commitment, but are still making realistic goals.
The information contained in this article does not constitute financial, legal or tax advice and its authors make no claims about its accuracy or completeness. The authors of this article do not hold themselves out as providing any legal, tax, financial or other advice and do not make any recommendations or endorsements as to any investment, financial plan or any other product or services. The materials contained in this article do not constitute advice and you should not rely on any material in this article to make, or refrain from making, any decision. As laws and regulations change frequently, we cannot guarantee that the information contained in this article is current or applicable to your specific circumstances. Laws and regulations may vary from jurisdiction to jurisdiction. Legal, tax and financial advice must always be tailored to your specific circumstances and nothing in this article should be viewed as a substitute for the advice of competent legal, tax or financial advisors.