Remove your fears of financial planning by taking action about your finances.
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Hey Beautiful human,
I know sometimes it becomes so overwhelming to plan your finances that you go into stress. I feel it every time when I think of retirement fund or emergency fund. We don’t have much debt except mortgage, even then I feel an overwhelm about financial freedom or say my future. I know this will take some time to go but financial overwhelm or fears are real. And I think these fears are good to some extent to grow your wealth.
But if these fears are taking joy out of living, start thinking to remove them from your mind. You may feel little relieved from financial insecurities if you have some amount of money saved in your emergency fund, retirement fund and investments.
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Here is how I try to remove that overwhelm from my mind
1. Think good about what you have
Thinking good about your blessings is the best thing you can do for your self. When you start feeling good about what you have, that unknown fear recedes to some extent. Pay gratitude for whatever you feel like you have, without which, you will be miserable. Be it health, relationships, kids, job, anything.
This is a stepping stone for removing that fear of something which grow inside us. That fear is the real thing. But when you start thinking about your blessings, your mind starts believing, if you can have this, you can have other things also. If this universe has provided you with these blessings of life, you can have more. You only need to take action towards what you want.
2. Introspect what you have accomplished so far
You may not have 100,000s in your account but you may have paid any debt, or some credit card payments. Whatever it is , you might have accomplished some financial goals which you cherish and are happy about. Write down those and motivate yourself that if you can do this much , you can do more. These could be as small as saving few bucks or buying something after saving money instead of with borrowed money.
If you haven’t saved anything till now. don’t panic. You can do it right now. There is solution for everything related to money until we are alive. Just say to yourself, ” This is the best time to save , invest and make money. Go for it.”
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3. Track your spending
This is my absolute favorite. I love to track my spending because when you know the movement path of your money, you can put some hurdles in its movement. Here the hurdles are squeezing some money to save. Or instead of buying something, totally ignore the urge and put that much money into saving/investment.
You may have used your earlier paychecks on buying things you don’t need, don,t fret over it. Move on and make decisions for your tomorrow. Tracking your spending will help you in analyzing your purchasing decisions.
4. Financial planning
Planning your future financially is an important task which you cannot miss. If you don’t know how much you want to save for your future then it would be difficult to save any money. Financial planning is equivalent to life planning. Though life planning requires many other aspects of life, but money is indeed one of them. Your planning should include how you want to earn, save and invest.
5. Set your long term, mid term and short term goals
Some goals can be accomplished easily in short period. These are like saving for emergency fund, saving for travel but investments and retirement fund are long term goals. These goals should be accomplished by setting them and slaying them. Start small. First you need to change your mindset and make saving your money a dream.
Investing comes after that. Because when you think of saving then you also start thinking of growing your money along with saving. Saving money gives you a kind of cushion to make some little bit risky investments.
6. Diversify your income
Diversifying your income is mandatory in today’s ever changing economy. Say if you are in a good paying job, you may feel happy for today and you should. But circumstances can change sometime that could affect your earnings. Be it medical problem, or loosing job, anything like that.
But the impact of these situations would not be that harsh if you have other income sources. You may have started a small business which is so small that pay only your bills. But you have a choice now to take that business to some other level.
7. Start side hustles to earn more
Online world has opened so many doors to start side hustles which were not available earlier. Now you can start with your hobbies and crafts. You can sell on amazon, ebay, etsy and many more. You can also start a blog and this can be helpful in building your business.
Many people start blogs and start earning from it. Blogging gives a base for your business.
8. Be creative with money
Being creative with money according to my understanding is that you have to save from wherever you can and put it in to right place. Saving as well as investing your money. Investment could be any where, like real estate, stocks, term deposits, retirement fund etc.
Start small and try to understand investments first.
9. Automate your savings
This one is an absolute necessary. Never think of saving money after all the expenses. Rather automate your savings by direct debit to your savings account. After expenses, nothing will be left to save. You can save remaining money if you get after all the expenses.
Most of the bank accounts have this application to put your money automatically in your saving account.
10. Start investing
Investing money is confusing, bit risky and most of us refrain from investing money. There are many types of products to choose for investing. It is best to start investing small amounts of money and in less risky investments.Do your research, read books on investment, talk to a professional.
There is always some basic rules for everything. Start small on investments. Automate your money to investment accounts. Invest for long time. Because then only you can make money. And don’t get bothered by ups and downs of markets. Have patience and let your money grow.
11. Think abundance about money
Having abundance mindset doesn’t harm anyway but it is required for having a successful financial life. Thoughts of abundance makes you happy. Even if you don’t have money, thinking good and feeling abundance brings ideas into your mind for making and saving money.
If you will always be in scarcity mode, you will feel fear and stress. This always inhibits your creativity. To release creative hormones from your mind, you should feel happy. Little stress and overwhelm is fine but if takes happiness from your life then you should definitely start having abundance mindset.
These are all my favorite tips to remove fears of financial planning slowly. I know it doesn’t happens in single day, but I am hopeful for the future. Share this if you like and please tell me in comments how you try to overcome the fears of financial planning.