Yahoo Finance Money on the Mind: How To Stop Dwelling on Your Finances and Start Taking Action
Do you feel like your finances are all you ever think about? And no matter what you do, you can’t stop dwelling on money? Well, you’re far from alone. According to a recent GOBankingRates survey, a whopping 44% of Americans are in the same boat.
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Thinking about how to handle your money is healthy, but what’s truly important is how you take action.
“Managing finances goes beyond mere contemplation; it requires actionable, deliberate strategies that align with both your short-term needs and long-term goals,” said Alari Aho, CEO and founder of Toggl.
Below are some actionable tips from experts on how to quit dwelling on your finances and actually start acting on them.
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Automate Your Savings and Investments
Aho recommends one tip that blends psychological approaches with practical actions to shift from constant worry to proactive financial management.
“One of the most effective strategies we’ve implemented at Toggl is automation, and this can be brilliantly applied to managing finances,” he advised. “Set up automatic transfers to your savings account and automatic contributions to your investment accounts right after you receive your paycheck.”
Aho says this ‘pay yourself first’ approach ensures that you’re consistently working toward your financial goals without having to make a conscious decision each time.
“It reduces the temptation to spend what you intend to save or invest, making your financial growth almost effortless.”
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Manage the Unexpected by Building Up Your Emergency Savings
“Most people think of financial planning as a numbers-only game, but what makes finances personal are the emotions and behaviors that go into our money decisions,” said Charlie Pastor, CFP and contributing expert at The Motley Fool Ascent.
“You may have inherited your height and eye color from your parents, but you also likely inherited their attitude around money, whether that be spending patterns or investment reluctance,” he explained.
In order to change your money behaviors, Pastor says it’s important to take intentional steps to reframe your mindset.
“Maybe you always have money on your mind — that isn’t necessarily a bad thing! Most financial success stories come from money-conscious people.”
He added, “If you are stressed out from always being worried about money, that’s another story. In that case, strengthen your financial base by building an emergency fund that feels comfortable to you — at least 3 months worth of expenses — and try to take a long term view of financial goals.”
This way, he says you can feel confident in your ability to manage an unexpected expense, or the weather turbulent markets.
Overcome Shame by Changing Your Mindset
“Spending shame is a very common emotion that comes up in financial planning,” said Pastor. “In fact, many retirees have trouble switching their mindset from accumulating assets to spending their savings. Some find it harder to spend than to save!”
To combat this mindset, he suggests rewriting the script on shameful spending by recognizing that everyone spends money on things that are important to them.
“As long as you are putting enough money away for retirement, it’s okay to splurge on tickets to a show or an upgrade to your airplane seat every once in a while,” he added.
Make It a Point To Consciously Reframe Your Mental Scripts
“Overspending is a challenge for everyone, and there are many ways to reframe your budgeting script,” Pastor said.
For example, he says you may choose to funnel a fixed amount of money into a separate bank account for ‘fun funds’ each paycheck. “Once that money’s gone, it’s gone until the next pay period.”
He says other savers might find that paying in cash makes spending more ‘real’ to them. “For some, all that is needed is a regular budget to keep them on track, whether done through a mobile app, a spreadsheet, or on the back of a napkin.”
He continued, “Emotions are a completely normal part of personal finances, and are a major driver of our financial decision making. It’s important to remember the financial habits we inherit are not nearly as important as the decisions we make.”
Don’t Worry About Starting Small, Just Do It
“Starting small is sometimes essential,” said Martin Orefice, CEO of Rent To Own Labs. “Especially if you’re trying to reach a large financial goal like homeownership, the obstacles can seem overwhelming.
“When you can only scrape together a little bit extra each month for savings, getting the tens of thousands of dollars you’ll need for a down payment can feel so daunting that you don’t even want to try,” he noted.
But he says this is a mistake.
“Start saving that money. Even if you can’t buy your dream house in a few years, you’ll still be better off than you were, and that little bit of savings will give you the confidence to try something new.”
Find a Support System To Help You Take Action
“Sign up for an online financial program or service that will encourage you to take action,” said Renee Fry, co-founder and CEO of Gentreo. “First, choose one that you have to pay for, not one that is free.”
He says this will help you appreciate using it more.
“Next, make sure it sends you reminders to take action. For instance, at Gentreo, if a user gets started but then stops, we shoot reminders to users. This helps make sure people value the service and check the box on getting their estate planning done whenever life changes.”
Fearlessly Keep Tabs on Your Finances
“It’s important to keep tabs on your progress regularly,” said Liz Hutz, co-owner of Cash Home Buyers Georgia. “Set aside some time every now and then to take a look at your budget, see how your investments are doing, and adjust things if you need to.”
She added, “It’s like checking the map on a road trip to make sure you’re still heading in the right direction.”
Instead of just worrying about money all the time, she says to try to see managing your finances as a positive thing.
“It’s not about being scared of making mistakes, it’s about taking charge and making decisions that will help you reach your goals,” Hutz explained. “Think of it as stepping into the driver’s seat of your financial life!”
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This article originally appeared on GOBankingRates.com: Money on the Mind: How To Stop Dwelling on Your Finances and Start Taking Action
