Steps to Finding Financial Zen (Financial Peace of Mind)
It’s very hard to find financial peace of mind or financial zen if you’re constantly faced with financial problems or money woes.
So, how can we leave the circle of financial stress and achieve financial peace of mind?
Firstly, identify the financial stressors in your life and tackle each stressor swiftly, one at a time.
1. Get Debt under Control
This is the first thing we want to do. We want to get rid of debt as quickly as possible. The problem is how do you get rid of debt? Don’t expect a quick fix scenario unless you’re blessed with an inheritance or a lump sum of money. A great way to get out of debt is to instil discipline in managing your money.
Sit down with a professional and look at the different ways to tackle debt.
- Can you make extra repayments on your mortgage?
- What is your credit card limit?
- What are you splurging on?
- Should you consolidate your loans?
- Can you start saving?
- Do you need to set up a budget?
Get a debt management plan in place and be disciplined with your approach to ensure debts are reduced as quickly as possible.
2. Gain Control over your finances
Be in control over your personal finances. Get organised and pay your bills on time. Get to know your net worth position. Check in and review your bank account statements and oversee your money situation.
Like scheduling an important meeting in your diary, keep a calendar of all things financial. For example, schedule in bill reminders so they get paid on time to avoid late payment fees, major expenses like mortgage repayment due dates and the most important thing when income gets paid.
It’s like creating a month to month snapshot of all expenses and monies coming in and going out. This helps to create a budget and to plan ahead for other big ticket items coming up like family holidays.
It creates a sense of awareness that can shock or surprise you. You may be surprised to see monies left over each month which could be set aside for savings or better yet to make extra repayments on the mortgage. The shock may be realising the various monthly direct debits set up that’s draining your cash flow. Forgotten magazine subscriptions or gym memberships you’re paying for!
3. Start money conversations with your partner
Money issues can cause a lot of stress as well as relationship breakdowns and arguments. Before things turn nasty take the time to talk to your partner about money and have ‘financial’ conversations.
It may seem a bit awkward in the beginning but the more you can talk to one another about money the less frustrated you will feel and more understanding about each other’s money habits.
Review your finances as a team and get on the same page. Openly talk about your financial goals, dreams, your income, your expenses, bills, your frustrations, your concerns and be prepared to make adjustments if required.
Being able to talk to your partner in a non-emotional way about personal finances soothes tensions and leads to emotional happiness and wellbeing.
4. Set bite-sized Money Goals
Continue to work as a team and as you’re having conversations about goals and dreams, don’t just talk about it, set them as money goals to pursue.
Make a list of the surprises and the shocks to see what your bite-sized money priorities should be.
Start with the biggest shock. This could be the ‘forgotten’ monthly direct debits that mercilessly zaps your bank account or racks up your credit card every month. These monthly debits of $20 or $50 may seem trivial as single items but when you consider the combined yearly sum, how rude and shocking it becomes.
Out of a shock comes a nice surprise. The more you can afford to slash and burn unnecessary monthly expenses, the more financial clout you get to either invest more and pay off your debts faster. This can only improve your money-growing power and confidence to reach bigger goals.
Make sure your bite-sized goals are potent. Be specific and set deadlines to every goal you set. Don’t be overly ambitious but be realistic. Set yourself up to win, not to fail.
5. Make it happen!
As with any tips or recommendations you receive or hear about, they sound like a great idea and they probably are but only if you decide to do something about it.
Some people mull for months on end and the urgency to make a positive financial change disappears.
Learn to be decisive and take swift actions. Whatever your bite-sized goals maybe, get on to them immediately.
Every time you make progress, you’ll feel happier and proud of yourself. This confidence and positivity will drive you to tackle bigger challenges and life goals.
Get a financial planner and get him or her to coach and mentor you along. Being held accountable and responsible for your actions is a huge motivating factor to help reach your goals.
Don’t just dream and talk about goals, do something about it.
Follow these tips to find your financial zen, harmony and peace of mind. Get interested and be prepared to roll up your sleeves to change your ad-hoc financial habits into a routine of financial discipline and control. Everyone can do with some financial tranquility.
For more help on finding your financial zen, talk to a Dome Financial Adviser in Charlestown, Tamworth and Hunter Valley.
The information contained on this page is for discussion purposes only and is not intended to constitute financial product advice. It does not take into consideration any persons objectives, financial situation or needs. You should consider its appropriateness in light of your circumstances and consider seeking professional advice relevant to your individual before making a decision based on any information on this page.