The One Thing Most People Miss Getting Out Of Debt

Many people feel that being successful with money has everything to do with math, it doesn’t. The success we have with money has mostly to do with our behavior. There are four areas that I believe can help you behave differently with money and will help you start to begin to win. Let me explain them.

1. Have a Plan
   What do you want in life? No, seriously you need to figure that out if you want to win. Where are you going? What does 1, 5, 10 or even 20 years from now look like to you? Are you setting goals that will get you there? What does retirement look like? Do you want to stay home with your grandchildren? Do you want to travel? Do you have and maintain a monthly budget? Having a plan and setting goals financially, but also in other areas of your life will be your guide in living the life you have always imagined.
2. Be Aware
   Where are you financially? How much debt do you have? What assets do you own? There are many that don’t know. What situations cause you to overspend? What situations do you get yourself into that you feel guilty for after the fact? What do you have difficulty saying no to? Is it eating out or going for drinks? Did you have a rough week at work and decide to hit the stores for a little retail therapy? Whatever it might be, start to think about what gets you into trouble. Once you know yourself you can control yourself.
3. Think Differently
   There are many ways that thinking can greatly improve our lives. This is a perfect way of thinking differently for the month of November and Thanksgiving. Rather than thinking about all the stuff you don’t have. Start to take time and be grateful and content with what you do have. This takes time and practice. We are constantly bombarded with advertising that we don’t have enough in our lives and we need this or we need that. Take some time each day and reflect on all the good things you have in your life and you will begin to reduce the feeling of always wanting more.
4. Want VS. Need
   You must be able to determine a want vs. a need. The retail, car and debt companies are sending message upon message over every advertising medium that we NEED their products and it is very easy to get the two confused. Do you need a $25-30k car? Do you need a 72” TV? Do you need a $300 hand bag? Stop and think before making these purchases. Ask yourself is this a need or a want? Does this purchase support my overall goals? A quick way to keep yourself in check is I want you to wait 24 hours before making that purchase to give yourself some time to think about if that purchase is a need or a want and if you can afford it.

Seems easy right? It is very easy in theory, absolutely! But as self-development expert Jim Rohn says, “What is easy to do is also easy not to do.” You need to pick your head up look forward and pay attention. There are too many of us that are walking around in this fog just bumping into things that are keeping us from being successful with our finances. Get on a plan, be aware, think differently and start to understand wants vs. needs.

By putting these 4 items into practice little by little every day you will see a significant improvement in your handling of money.

Brad Nelson is a Financial Coach and owns Balanced Cents Financial Coaching. The company was founded with the passion to help and serve people by injecting hope and providing education and direction on personal finance.