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How to Align Your Personal Values and Your Financial Wealth

How to Align Your Personal Values and Your Financial Wealth

Something I must confess here! I am emotional eater- whenever I feel emotional, due to any reason, I eat. And I eat out. Eating out cost us money, meaning I can easily bust my budget just because some idiot has pushed me into any sort of emotional drama.

We all, at some point in time, spend just because we feel emotionally charged. To come back to our normal self, we engage into certain external distractions such as eating out or going for movie or even taking a walk outside to get some fresh air.

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Who you are from inside?

Just like we ordinary folks spend money on our emotions, so do the super-rich. I was recently reading about Minecraft owner’s parties in his expensive mansion. He said that he had never felt so isolated in his life as after selling Minecraft to Microsoft. There are other stories like him to where celebrities spend so extravagantly and for many work is the only option left to support their lavish lifestyle.

Are they financially free? I don’t think so because the day, someone like Mayweather stops fighting, he may no longer be in a position to maintain this lifestyle. One wonders why so successful and not so successful people show such irresponsibility when dealing with money and can’t balance their emotions.The answer lies in a simple fact of life! This simple fact is who you are from inside?

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You know, to feel yourself worthy from inside is as important as you feel yourself worthy in your external world. Having a clear sense of self-worth and importance to one’s self is key factor to live a balanced and more fulfilled life- a life which is balanced on all fronts i.e. financial, healthy, relationships and of course our spiritual side.

Externals vs Internal

Let me also make another confession here- I have been victim of what is called keeping up with joneses. I bought every new model of iPhone and Samsung. I was just crazy about them and I paid the price.

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It often happens that our external and internal values differ- this is the result of an internal vs external clash. Externals can push us to spend on things which we later regret however, if internally we feel self-worthy, buying anything would not have a particular value for us. However, if our self-worth or self-esteem is externally directed, we are surely going to spend as much as we can, just to make sure we keep up with joneses.

Values vs numbers

Most often, it is numbers which drive your financial planning process. You prepare excel sheets, buy software or use online tools to crunch numbers- just to see how much you will need to be completely financially free. If you are following this approach, you are clearly failing to address really important issues which go hand in hand with numbers.

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Carl Richards, in his book ‘One Page Financial Plan’ narrated the story of a working woman who was earning a handsome salary, but wanted to be financially free to have a family. This is a great example of giving any financial planning process a more human touch. Having a strong personal reason to plan for secure and successful financial future is as important as drinking water.

Unless one can connect the dots between personal values and numbers, financial planning as a way to achieve financial freedom, pay debts, control expenses, plan for retirement etc. will simply fail. Personal values and why you need money (except off course to fulfil your daily survival needs), are important links to be determined before anyone starts to plan for a secure financial future.

Ask yourself tough questions of why you need money? What are some of your personal values which you believe can only be fulfilled or achieved if you have money?

Featured photo credit: pixabay.com via pixabay.com

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Adnan Manzoor

Data Analyst & Life Coach

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Last Updated on April 3, 2019

How to Nix Your Credit Card Debt in Less Than 3 Years

How to Nix Your Credit Card Debt in Less Than 3 Years

Debt is never a fun thing to be in. But, there are many actions that you can take that will help you rid yourself of the burden of debt once and for all.

By coming up with a set plan, eliminating your debt can feel much easier than constantly thinking about it.

This post will provide some tips on how you can do this to help you nix your credit card debt in less than 3 years.

Hint: there are ways that are easier than you think.

1. Consider Consolidating Multiple Credit Cards If Possible

This may not be applicable to you, but if you have multiple cards – it is something to consider. Keeping up with multiple bills is time consuming.

It will depend on the balance you have on each. Consolidate ones you can but do not do it to the point that you get too close to the maximum limit. Also, it is ideal to pick the card with the lower interest rate.

Consider if there are any fees or alternatively, rewards, with transferring a balance to another card. Watch out for fees. Note that some cards offer rewards for transferring a balance to them. This is extra cash that can help go towards paying off your debt.

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Having one or two cards can make nixing your debt much simpler than keeping up with the balance of a bunch of cards. Keeping track of paying the minimum towards a bunch of cards is time consuming. Spend the time to consolidate instead to make the overall process simpler going forward.

My tip: Have one main credit card. Have a second one that you use for necessities – such as groceries or gas – that offers rewards for those purchases (a lot of cards do) and set the second one on auto-pay. You should be able to pay off a smaller amount on auto-pay if it is a necessity. If you think you cannot, then you may need to cut down a lot on expenses.

Why do I suggest doing this? Having one thing set to auto-pay is one less thing to think about. One less thing to waste time on. Same idea with consolidating to one main card. Tracking down too many is a hassle.

2. Try to Pay the Full Balance You Spent Each Month at the Very Least

You need to pay off the amount you are spending each month when that bill comes in. This is the amount you spent THAT month.

Do not let the debt keep accruing while you work on paying any unpaid debt that has accrued. It will become a never-ending battle. Try as best as you can to be current on paying for each month’s expenses when that month’s bill comes out.

If this is a strain, consider why. You may need to cut expenses. Or you may need to consider other cards. Or look at where this money is going.

3. Pay Extra When You Can – Every Small Amount Counts

This cannot be emphasized enough. If you are looking at a lot of credit card debt, it can look daunting, but each extra amount that you can put towards the debt will really add up – no matter how small it is.

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It does not just reduce the principal amount that you have left to pay off, but it reduces the amount that is collecting interest. You will always save money with that reduced interest.

4. Create a Plan on How to Pay Extra

Back to the main point, having this plan is giving you one less thing to think about.

This plan should be a plan that works for you. If it does not work for you, your spending habits, and your views on debt, then it will not be an effective plan.

For instance, if a set plan of an extra $50 (or another amount that you know you can afford) works for you, then do that. Set that aside every month and pay that extra amount. Treat it like a bill. Choose an amount that works for you and pay it like clockwork as though it was a bill you had to pay each month.

Little amounts will not nix it entirely, but they will help tackle it and having a set plan can make it less of a chore. Creating a new plan of how much to put towards it each month is an unnecessary added stress.

5. Cut out Costs for Services You Do Not Use

If you are signed up for subscriptions that you do not use because of some free trial or for some other reason, cut it out. Your overall financial position will look better.

In turn, that will make cutting your credit card debt easier. Look at your statements to find these expenses. If you do not use them, you may forget you are paying some unnecessary amount each month. Cutting it out can really add up in savings that you can put towards other needed expenses.

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6. Get Aggressive About It

Consider these points:

Depending on the interest and the level of debt, you may need to give up a few indulgences. For example, instead of ordering delivery or going out to eat, cook at home. Everything adds up.

Other things may be more of a sacrifice. It may be a trip you wanted to go on, or a daily latte habit you’ve picked up. In these instances, consider how important it is to you and if it’s worth the sacrifice. And if it is a costly expense, think whether you can wait to indulge.

Cutting an extravagant expense can really help make a dent in your overall debt. Try not to add to debt when you are trying to pay it off. It will be a never-ending battle. Make it less of a battle with these tips and it will feel easier.

Bottom line: Do what you can to make this process easier for you. Implement steps that do this. It takes time now, but will help overall. Also, keep track of your spending and paying down of your debts. Which is the next point.

7. Reevaluate Your Progress at Set Intervals

Doing a regular check-in can help you see your efforts pay off or maybe indicate that you need to give this a bit more effort. If you check every 3-6 months, it will not feel so much like a chore or feel so daunting.

By doing this, you will be able to better understand your progress and perhaps readjust your plan. Bonus: if you see it pay off, it will feel great to do this check-in. You will get there.

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Finally (and most importantly)…

8. Keep Trying

Do not get discouraged. Pushing it off will make it worse. Just keep trying.

Once your debt becomes lower, each monthly payment will reduce the balance more. Why? You are paying less towards interest. It will be a snowball effect eventually and it will become much easier to manage. Just get to that point. And know once you do, it will feel easier and motivating.

Start Knocking out Your Debt Today

The best way to eliminate debt is to get started right away. Begin by implementing the above steps and watch your debt just melt away. Try out some of the above strategies and see what works best for you. Soon you’ll be on your way to a debt free life.

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Featured photo credit: Pexels via pexels.com

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