Along the way, financial security is a journey with few shortcuts. But taking some small steps to improve your money mindset can create a solid foundation for repaying debts, maintaining budgets, and accumulating savings and investments.
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It all starts with understanding your relationship with money, says Elana Feinsmith, a certified financial planner and Oak Finance Coach certified financial therapist.
You can take seven subtle money to change the way money thinks.
Feinsmith recommends spending five minutes a day to record your feelings about money. “The diary allows you to observe what’s going on in your brain, whether it’s your cash flow, your investments, or your grocery bills, no matter how different aspects of money,” she said.
The key is to focus on your ideas without judgment so that you can better understand your relationship with money and then set your goals to align with your values.
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Feinsmith notes that with many digital choices for currency management, “we tend to be disconnected from the physical aspects of money.”
Whether it’s $50 or $100, you don’t spend a big bill in your pocket, which can help you stay connected with the reality of cash and enhance your money mindset without a massive economic sacrifice.
“The idea is there to remind you of your financial goals,” Feinsmith said. “It makes you feel responsible for the money and thank you for the money. Choose an amount that makes you feel rich inside.”
Experts say that over time, a small victory can cause a big change in your overall financial situation. One thing you can do for your mental health is to consistently pay your credit card bills. Take the time to celebrate this small victory.
"If you are paying all the minimum payments, then the top five can help maintain credibility," said Julie Guntrip of Jennius Bank.
"The Jenius Bank's research on money and mental health tells us that many people feel overwhelmed when they look at the balance of debt. These negative emotions can make it more difficult to start the process of paying. But actions tend to be quiet."
If small movements can help with quiet anxiety, imagine the psychological boost that even people with small balances can get from paying their credit cards in full. Guntrip and Feinsmith discuss snowball and avalanche methods to pay off debts.
“Everyone is unique,” Finesmith said. "Everyone needs to look and see what to inspire them. Will credit card companies get less interest per month when you pay off higher interest cards? Or do you see that you no longer have specific debts?"
The cannon belt touts the benefits of the snowball approach, noting that “eliminating balance, even a small portion of the initial victory can lead to a strong emotional boost.”
Once you have paid off your credit card, you can place the monthly minimum payment you previously paid per month on your next largest credit card bill. Alternatively, you can strengthen your emergency savings account, which can enhance your confidence.
“Small-scale intentional action goes a long way to improve your money mindset,” Gunto said. “Setting up automatic transfers to savings accounts can help you build (good) habits.”
Usually, maintaining a rotating credit limit on your credit card can benefit your credit score by increasing credit utilization and length of your credit history. However, if a card charges a high annual fee, or if you think leaving the credit line open may induce you to debt again, it makes sense to close the card.
Close unused accounts that no longer serve your financial goals also have psychological value.
"It could remove some confusion from the credit report, reduce exposure to fraud and help you feel like you're ''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''
If you are already stuck in difficult-to-manage debt and have your collector send letters, don't pile up with statements that interest continues to arise. Even if you can’t pay immediately, responding quickly can help you financially.
“Find out what resources you have to use,” Feinsmith said, noting that nonprofit credit advisory agencies may help.
Regardless of your situation, you can decide on simple steps that can help you build motivation. "A series of small victories may help transform your relationship with money from one of avoidance to one of control and confidence," the Gunband concluded.
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This article originally appeared on gobankingrates.com: 7 small moves that may have a significant impact on your money mindset