The Power of Positive Money Habits
Money, we may not like to talk about it, but it tends to be constantly on our minds. As small business owners, building a healthy relationship with our finances is crucial for the growth and prosperity of our craft. This month, seasoned financial advisor Kim Masters shows us the power of positive money habits.
The legendary NFL coach, Vince Lombardi once said “Winning is a habit, unfortunately, so is losing.” This is also very true when we look at our relationship with money, and the habits we form when managing it. Positive habits can help us to grow, whilst negative habits, even small ones, can literally sink a ship.
The problem with negative habits is that they can form very quickly, and soon become ingrained in the way we think and act; once formed, they can be very hard to shift.
To get rid of negative habits, we must come face to face with our arch nemesis, change!
Resistance to change is probably the biggest barrier we can have when looking at altering our habits. Sometimes it’s obvious to see where the problems are, but instead of taking action we put blinkers on and use phrases such as “we’ve always done it this way”.
Creating positive habits can be hard; the reason we love negative habits so much is because they are easy, or we think they are. So many negative habits include cutting corners, sweeping things under the carpet, or just burying our head in the sand; but some negative habits can be complex, and cause more work and stress.
One of the most common negative money habits I see (especially in the workplace) is the duplication of work, it is most prominent when a new system has been introduced. Some people run two systems, at the same time! It sounds crazy, but a lot of people do it. Why? Because they don’t trust the new system, they don’t fully understand how the new system works, so they create a ‘back-up’, or they can’t let go of the old system.
Fear and uncertainty are key when we look at changing negative money habits, so it is always a good idea to get some help with it; sometimes a fresh perspective can make all the difference.
Positive money habits can be life changing because they make life easier; they help us to work smarter, not harder, and they free up time, and create space for us to do other things. They can also be as contagious as negative habits, simply because of the emotions associated with them; completing a task in 30 minutes, when it used to take 1 hour makes you feel great!
We can’t just erase negative habits, because they have been wired into our brain over time through experience and repetition. The trick is to learn how to rewire the brain; to do this you first create a new positive habit, repeat it often, and over time this will override the old habit.
It takes discipline to create positive habits, it’s not easy, but change one negative habit, and it seems to have a knock-on effect, you see the results, experience the benefits, and soon you are embracing change!
Here are my top tips for making positive money habits:
1. Make a regular appointment with yourself, either weekly or monthly, where you sit down and get up to date on your finances. Don’t change this, unless you absolutely have to.
2. Go through your costs and create a monthly budget.
3. Stick to the budget. There may be months that unexpected costs arise but try and stick to the budget as much as you can.
4. Be NON-JUDGEMENTAL when you think or act around money.
5. Try and be aware of negative money thoughts. If you find yourself thinking or speaking about money in a negative way, stop! Try and shift the emotion to one that is more positive; pick something good that’s happened and focus on that with love, forgiveness and gratitude (this helps to rewire the brain).
6. Start a money journal; write down your money wins, the money challenges, thoughts around money, money opportunities, and a general overview of your day. You can then look back and see if there are any recurring money thoughts or habits and also create affirmations to help you think more positively.
We're Here to Help
If you need help changing your money habits, then give me a call and we can make the changes together. www.matsconsulting.com