While my advice won’t make you giddy about a bad financial situation, it will help you to get into a state of mind where money does not haunt you.
You see, the people who are most worried about money are the ones who are spending more than they are earning. How can you help but worry when you do that?
The plain fact is that you need to stop spending more than you are making in order to put your worries in check. If you make more than you spend (or spend less than you make), then you will finally be comfortable month-to-month. And you might even be happy about your finances for a change!
Here’s how to become happy with your current financial situation and get a grip on your money…
A Simple Budget
Start by creating a budget. Write down all of your expenses. If you need to, keep a notebook with you for a month and write down everything you purchase. The point is to become aware of every cent you spend.
Next, compare this to how much money you make. Then, eliminate or avoid purchases until your income exceeds your expenses. I realize this won’t be easy, but awareness of your habits is one of the most important steps to breaking the bad habits that cause so much trouble.
Once you make your budget, follow it. It takes a bit of self-control to not relapse into bad habits after getting your expenses in order, but if you do relapse, you will only make yourself begin to worry about money all over again.
Finally, relax. If you have created a budget, and you are making more than you are spending (or spending less than you are making), and you put a savings plan into action, then you are finally free to enjoy your life without obsessing about your money. Congratulations.
I have been a certified tightwad striving for financial freedom since I became pregnant with my first child — and I decided to find a way to stay home with him full-time. I enjoy sharing my personal experiences in my journey back to financial health and planning for a future — which will include sending 2 kids to college and early retirement.
