Most people are dreaming about better finances and more money, yet most people still fail. It seems like one of life’s biggest mysteries, but the answer is often easier than you think.
In fact, for most people, the problem lays in the mindset or rather having the wrong mindset.
Luckily, changing the way you look at your finances is easier than you think and with the following 4 tips, you’ll be on your way.
Set Reasonable Goals and Make Smarter Decisions
The number one mistake people make concerning their finances is setting unreasonable goals. Your goals should always be high because otherwise, it’s not worth it. Just remember that setting them too high will have the opposite effect on your motivation.
For example, going from not saving anything to saving $1 million in a year is unreasonable, especially if you’re not planning on working for it. Doing it in 10 years, however, could potentially be done.
The goal is to set goals that scare you enough to be exciting but that aren’t high enough to be impossible.
Also, no financial goal is going to help you unless you change your ways and start making better decisions. If you want to make passive income, investing with long-term goals is better than trading with online brokers, etc. If you want to day trade, investing with suitable trading software is better than many long term investments options.
Everything depends on what your goal is.
Get Inspired By Your Own Progress
Many people also fail to give themselves a pat on the back for what they’ve already accomplished, and oftentimes that’s a great motivator.
In fact, even if you haven’t reached your goals within the timeframe you gave yourself, you most likely experienced some form of progress. And when everything feels hopeless and your finances aren’t going your way, stop and look back. Where were you 2 years ago? Five 5 years ago? Even as little as 6 months ago?
Be your own motivator and nothing can stop you.
Hold Yourself Accountable, Always
While being your motivator is great and a priority, you also need to hold yourself accountable. Your finances are your responsibility and you can expect anyone else to help you.
Even worse, blaming others for your financial struggles is the worst you can do because it’s not their finances, it’s yours.
Our point is that it’s up to you to make the changes you need in your life, and if you set a goal (a reasonable goal) you are the only one that can keep yourself accountable for reaching that goal.
Don’t Over Do It
This last tip kind of ties everything together.
Personal finances is a complicated and often stressful topic and going all-in from the beginning is seldom a good decision.
Like everything in life, it’s a process and you have to be willing to work for it over a longer period of time. Also, break down the process into smaller goals and you won’t run the risk of overdoing anything.
