Money affirmations are all about attracting wealth and generating prosperity. While positive thinking does have an impact on your emotions, truly achieving financial security comes through action. If you aren’t good with money or just consider yourself someone who never developed money smarts, there are steps you can take that can increase your confidence and help you make the most out of your income. Take these steps to begin overcoming money anxiety, start saving and begin to actually enjoy what you earn.
Address Debt Head-On
It’s easy to subconsciously avoid debt even when you’re actively paying it. People set up automated payments and let lenders take scheduled amounts for their bank accounts each month. While this is a good way to prevent missing a deadline, it could potentially rob you of the potential to get debt-free sooner. Automatic payments may only be the minimum you are required to pay each billing cycle. This means you’re guaranteed to accrue more interest despite always paying on time.
When it comes to student loans, you could be spending more than you have to because of high interest rates. Start looking into ways you can get out of debt quickly. This could include refinancing, consolidation and even taking out a credit card with a private lender to pay down your student debt. Credit cards and loans are tools, you just have to know the right way to use them. The sooner you come up with a debt recovery strategy, the sooner you can start taking bigger steps toward financial independence.
Learn to Use Credit Cards to Your Advantage
If you decide to take out a card to pay off loans or other bills, make sure you fully know all the terms and conditions of your lender. Credit cards can be just as valuable as they can be destructive. Research how credit cards work, what the interest rate is on a card and whether it is fixed or variable. What fees are incorporated that you may not be aware of? How often do you have to use your card or spend per year to keep it active? Use your card to make regular purchases that you can pay off with your paycheck each month. This helps you build a good score and consumer reputation without putting you further out of budget.
Address Toxic Money Myths
There are certain belief patterns people develop that can keep them struggling financially their entire lives. While we can’t overlook real-world factors like a low-paying job, lack of employment or bills, myths also play a large role in how people manage their finances. Some money myths you may have picked up from your own parents could still be impacting you today. These are thoughts that either stop you from achieving more or keep you perpetuating an unfulfilling cycle. Some examples include:
– I can always save later, so there’s no problem spending now.
– People expect the most expensive gifts, and they will think poorly of me if I don’t deliver.
– My partner is the financial provider, so I don’t need to worry about money at all.
– Only rich people are able to save.
– I’ll never get ahead, so I shouldn’t bother saving.
– I’m young, so I don’t need to plan for retirement.