Money talk is considered taboo. Nobody wants to talk about money. When money is the subject of talk, people often flinch from it. Well, The New Year is just around the corner, and you will be resolving for new financial habits. Some of you will be planning to build an emergency cushion, while others will resolve to create retirement funds.
Well, whatever the resolution you make on New Year’s Eve, money has never been a subject of comfort. Making a resolution is one thing, but implementing it is another. It is quite hard to change your financial habits unless you are open about it.
It is not surprising to see people flinching from talking about their credit card debt. Unless you get comfortable talking money, how you will be able to get a comprehensive look at your financial condition.
Even if you consult a financial advisor, you will have to be open about your true financial condition to know how you can improve it. There are so many things around money, which you need to embrace if you truly want to change your financial habits.
Money taboos that you must let go of
Here are the money taboos that you should let go of:
Not understanding the correlation between money and mental health
This is not unusual to know more than 80% of people do not understand the fact that there is a direct correlation between money and mental health. Most of the people think that the more they will have, the less financial stress they will suffer.
This is not the fact that you should believe in. No matter how much money you have, you cannot achieve your mental peace with money coming in. The point is how sensibly you manage to manage your cash. Just imagine a scenario.
You have a lot of money coming in, but you spend recklessly that you often run out of money. Do you think you will be able to live your life peacefully in such a scenario? No, not at all; this is why it is suggested to understand how your financial habits can have an impact on your mental health.
The fact is that your mind will be at peace when you have a nest egg, not when you earn a lot of money. You will naturally feel mental peace when you have cash over your expenses. When there is no wiggle room, you get flustered, wondering how you will manage to pay your expenses.
In order to know the relationship of money with your mental health, you should ask yourself if you have enough money in case a financial emergency pops up.
Track whether you are able to achieve your financial goals. In brief, you need to know how you feel when you think about your financial health. Of course, if it worries you, you have to improve your financial situation.
Not discussing the cost of living or money with family
Another problem with people is that they do not openly discuss money with their family members. When money is introduced as a subject for discussion, most of the people get flustered and start arguing.
If you want to maintain mental peace, you will have to ensure that your family members are on the same page. You should talk to your family about money, so you all know the financial goals that you have set.
In fact, you should set financial goals involving others. The cost of living is rising up, and income is still stagnant. It can be not easy to manage all of your expenses with the money you earn.
When an emergency pops up, you may have to take out loans for bad credit with no guarantor, but it can put a burden on your finances if you are not prepared to pay off the debt. If you want to tackle the rising cost of living, you will have to ensure that your family members are on the same page, and this can happen only when you do not fight shy of discussing money.
You should sit together and discuss how much and where money is going. Make sure that you and your partner both know about your spending behaviour. You should be open toward each other.
Try not to hide anything. You do not need to get mad at your partner if you have found that they have spent more than they were supposed to.
You should rather find out what you can do later. Here the purpose of discussing money is not tearing each other to pieces but to ensure that you do not repeat those mistakes and figure out the right way to manage more money. While discussing the cost of living, you should not forget to ask yourself the following questions:
- How many portions of your income accounts for your rent or mortgage?
- How much money do you need every month to pay off your other debts including small loans?
- What methods have you used recently to whittle down your living cost?
By asking these questions, you will be able to decide better how you can whittle down your cost of living.
Not establishing your saving goals
Savings are important, and yet people do not pay to attend to them. Most of the people have a perception that they do not need to stash away money as long as they have a lot of money. However, it is not the way you think so. Having a lot of money cannot help you stay on top of your expenses.
You will have to learn money management skills. If you want to stay on top of your expenses, you must have some money set aside. Savings frighten a larger number of people because that seems to be very difficult, and this is one of the most common reasons people do not bother to put aside money for emergency reasons.
The fact is that saving money is not difficult at all if you try to control your spending. You should try to establish saving goals and make sure that you involve your family members as well. It will be a great help to involve them because they should also know about your goals to assist you in achieving them.
Further, involving them will help you set realistic goals, and you will be encouraged to do so. When it comes to set saving goals, you should find out how much money you generally need to meet your monthly expenses.
Once you have an idea of your spending, you will be able to save the right amount of money every month. However, you will have to stick to your saving goals.
As soon as you receive your paycheque, you should immediately set aside a portion of your income as your savings. If you do it regularly, you will be able to build an emergency cushion.
You all should resolve for improving your financial life in the next year. However, at the same time, you should overcome with money taboo.
If you get rid of these taboos, you will be able to better deal with your money, and when you get better control over your money, you will be able to improve your financial condition.