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Emotions & Money: 3 things to avoid and 3 things to do more

EMOTIONS & MONEY: 3 THINGS TO AVOID AND 3 THINGS TO DO MORE

financial coaching money management personal finance Sep 14, 2022

It's no secret that emotions and money don't mix well. From impulsive spending to knee-jerk reactions, our emotions can often lead us astray when managing our finances. But what if we could use our emotions to our advantage? In this blog post, we'll explore three things to avoid when it comes to money and three things you should do more.

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Three Things To Avoid

First, let's dive into what you should avoid when trying to control your emotions and money.

Don't Let Your Emotions Drive Your Spending Decisions

We've all been there before; you see something you want and have to have it. Whether it's a new pair of shoes or the latest gadget, giving in to our emotions can lead to some pretty pricey impulse buys. The next time you feel the urge to splurge, take a step back and ask yourself if you really need it. Chances are, you'll be able to talk yourself out of it.

One tip I use is to give myself 24 hours for purchases. I will leave the store and return the next day or leave the item in my cart overnight. If I still want or need it, I go ahead and buy it. Most of the time, I forget about it and save money.

Don't Compare Yourself To Others

It's only natural to compare ourselves to others. We see the lifestyle of our friends and family members and can't help but wonder if we measure up. We see the new clothes they're wearing, the cars they're driving, and the vacations they're taking and feel a twinge of jealousy. It's important to remember that we don't know the whole story. We don't know what kind of debt they may be in or how much they had to sacrifice to maintain their lifestyle. Comparing ourselves to others is a recipe for discontentment. It's better to focus on our own lives and be grateful for w at we have. After all, there's always someone who has more than we do a d someone who has less. Comparisons are pointless and only serve to make us feel bad about ourselves. So next time you compare your lifestyle to someone else's, top and remember that you don't know the whole story. You don't know what sacrifices they may have made or what hardships they may be facing. Life is too short to compare ourselves to others. We should focus on our own liv s and be grateful for what we have.

Unfortunately, social media can be a breeding ground for comparison. We see our friends and associates living their best lives, and it's only natural to compare ourselves to them. But we don't see the behind-the-scenes stresses that accompany maintaining that lifestyle. So, instead of comparing your financial situation to others, focus on your progress and celebrate your wins - big and small.

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Don't React Without Doing Your Research First

When it comes to money, we often operate on emotion instead of logic. This can lead us to make hasty decisions that we later regret. If you're ever in a situation where you need to make a financial decision, take some time to do your research first. By gathering all the facts, you'll be able to make a more informed decision that you can feel good about.

Reacting to a situation without doing your research is never a good idea. Whether you're making a financial decision or simply choosing what to eat for lunch, it's important to take the time to learn about your options before you make a choice. If you don't, you could waste money or make a decision that you later regret. So next time you're faced with a decision, big or small, take a breath and do your research first. It could save you a lot of money - and headaches - down the road.

Three Things To Do More

There are some things that you can do more to strengthen your relationship with money. These things will boost your confidence and solidify your financial education.

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Talk About Money With The People You're Close To

It's no secret that money can be a touchy subject. For many of us, money is something we don't like to discuss. We may be embarrassed about o r financial situation or afraid of judgment from the people we're close to. However, money is an integral part of our lives, and it's essential to learn how to talk about it healthily.

Talking about money with the people you're close to can be a great way to learn more about financial planning and money management. It can also help you identify areas where you may need to make changes in your own life. Talking openly and honestly about money can help to reduce stress and improve your relationships. So next time you feel uncomfortable about money, take a deep breath and start a conversation with someone you trust. You might be surprised at how helpful it can be.

Money is still a taboo topic for many people, but avoiding the conversation won't do anyone any good. If you're looking to get ahead financially, talking about money with the people you're close with is a great place to start. Not only will you get different perspectives on money management, but you may also find yourself more accountable for your spending and saving habits.

Educate Yourself On Personal Finance

There's no shame in admitting that you don't know everything about personal finance - after all, most of us were never taught about it in school! Luckily, plenty of resources are available (including this blog!) that can help get you up to speed on topics like budgeting, investing, and credit management. The more knowledge you have about personal finance, the better equipped you'll be to make sound financial decisions down the road.

There's no shame in admitting that you need to learn more about personal finance. After all, money is a complicated topic, and it's hard to keep up with all the changes and new developments. Fortunately, areplenty of resources are available to help you improve your financial literacy. Start by researching online, or check out books from the library. You can also look for financial education classes in your community. And if you have any specific questions, don't hesitate to ask a financial advisor for help. The most important thing is that you take the time to educate yourself on personal finance to make informed decisions about your money.

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Set Financial Goals For Yourself

What do you want your financial future to look like? Do you want to save up for a down payment on a house? Pay off your student loans? Build up your emergency fund? Once you have a general idea of what you want your money to do for you, start setting some specific goals.

What do you want to achieve in the short-term and long-term? Do you want to buy a house, or a car, or go on a dream vacation? Do you want to retire early or help your kids pay for college? Whatever your goals may be, write them down and make them specific. Saying "I want to save money" is too vague. Saying, "I want to save $5,000 in the next year," is much better.

Once you set your goals, figure out how much money you'll need to achieve them. This will help you come up with a plan for saving and investing. And finally, don't be afraid to revisit your goals from time to time and make changes as needed. Your financial situation will change as you go through life, and your goals should change too. And don't forget: once you achieve those goals, set some new ones! Financial success is an ongoing journey, not a destination.

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Conclusion

Making smart choices with your money isn't always easy - but it is possible! by following these tips and staying mindful of your spending and saving habits, you'll be well on your way to financial success.

Just remember: take things one step at a time, and don't get discouraged if you make a mistake or two along the way. We all do!

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