Are you suffering from financial insecurity? Being financially insecure can come in many forms. For example, my grandmother lived through the great depression, which resulted in her becoming a hoarder. The fear of another depression occurring came with a high price of bad habits and insecurities. Maybe you have also experienced this type of fear, whether personally or with someone you know.
While there may be some things you can't control, you can work on overcoming your insecurities about money. Learning how to beat your financial insecurity can help you ditch debt, save money, and start building wealth!
5 Tips to help you beat your financial insecurity
Whether your financial insecurity stems from childhood or an unsupportive spouse these 5 tips will help you overcome it easier!
1. Combat financial insecurity with positive affirmations
One of the most powerful ways to combat your financial insecurity is with positive affirmations. In fact, MRI evidence suggests an increase in neural pathways when people practice self-affirmations! This means that you can change your actions by "rewiring" your brain with more positive thoughts.
So rather than saying "I'm always broke," you need to say, "I have an abundance of money!" By affirming you have an abundance of money, you will begin to take action and begin to develop habits to make it true. For example, when you go to spend money on something you don't need, your positive affirmation will motivate you to stop impulse purchases and work towards your financial goals.
2. Create short-term & long-term goals
What are your financial short-term and long-term goals? For example, do you want to buy a house, take a dream vacation, or save $10,000? Creating financial goals can help you overcome your financial insecurity because it will help you focus on something positive rather than your negative emotions around money. One of the best ways to motivate you to achieve your goals is to create a vision board.
A vision board is motivating because it is a visual aid that constantly reminds you of your goals. You decorate it with pictures, quotes, and positive affirmations that you want to accomplish. For example, your board may have a picture of Hawaii or quotes about being debt-free. Whatever your goals are, this is a great way to stay motivated.
3. Get financially educated
Many people are financially insecure because they don't understand certain aspects of their finances. For instance, some are afraid to invest, so they just avoid it altogether. Rather than letting your financial insecurity prevent you from succeeding, get educated about all things money! Reading finance books, watching videos, and listening to podcasts, are fantastic ways to learn everything you need to know to get your money right.
4. Take control of your finances
A big part of being financially insecure is having what are called money blocks. For instance, you may avoid your finances, which results in racking up debt and paying bills late. The best way to overcome your financial insecurity about money is to take control of it! Do these 3 things to start taking control of your finances now.
Make a budget
The very first step to start controlling your money is to create a budget. A budget helps you know exactly how much money you are making and spending. Be sure to pick a budgeting method that is easy for you because it will help you avoid challenges and stick with it. Otherwise, if you pick something too complicated or time-consuming, you will likely not use it.
One of the most popular budget methods is the 80/20 rule because it's super simple to do. This is where you save 20% and use the other 80% for everything else. This helps you prioritize saving money without making it too complicated.
Use a spending journal
Using a spending journal will not only help you track your transactions, but will also help you identify your financial insecurity by documenting your emotions too. For example, in your journal, you would write down what you bought, how much it was, and how you were "feeling" when you purchased it. This is a powerful tool that can help you stop wasting money and take back control of your finances.
Automate your finances
Simplify your budget by automating your finances. This makes taking control of your money much easier because you set up your bills and savings on auto-pilot. For instance, you can set up an automatic transfer of $50 a week to your savings accounts. This prevents you from spending that money and bulking up your bank account instead. It will also keep you from paying your bills late which saves you money in late fees.
5. Celebrate your financial wins
Do you see a pattern of positivity here? Celebrating your financial wins by rewarding yourself reinforces good habits. When you treat yourself for accomplishing a goal, it motivates you to keep pursuing other goals too! This is a huge way to stop you from being financially insecure. It will boost your confidence and self-worth.
There are a ton of ways you can treat yourself even on a budget! For instance, you could go to the park or take a staycation. Just make sure it's something you enjoy, so you'll want to conquer more goals and treat yourself more often. So start celebrating your financial wins no matter how big or small they are!
You can overcome your financial insecurity
The important thing to remember is to be patient with yourself. Overcoming your financial insecurities will take time and effort. However, with these tips, you will be able to combat being financially insecure. Starting with positive self-talk will motivate you to take action because it reinforces good money habits. So why not get even more financial help and motivation with our FREE courses and workbooks!