Keeping the wallet closed is the right financial decision in some cases
Achieving financial wellness is something that requires a a lot of commitment. Just like achieving physical fitness requires someone to eat well, exercise and get adequate rest, financial health requires more than just money coming into your account. The way that we think about money and our mentality about financial health is often just as important, as financial mentality often determines our attitude toward money and how we treat it.
Remembering that every dollar counts
In the moment, one of the biggest struggles that people have with their finances is losing sight of the big picture. This largely is a result of people forgetting that every dollar matters in the grand scheme of things.
There is no better example of this than the way that people approach food. Whether it is going out to dinner with a significant other or going to lunch with coworkers, people tend to treat themselves by overspending on food more than anything else. While that may lead to a better dining experience, avoiding that refill or skipping dessert can lead to big savings when done habitually.
Keeping in mind that every dollar counts is also vital when it comes to home repairs. While it is often easier to fix problems around the home by hiring someone to do the job, that decision can be a costly one. While some repairs are too difficult or dangerous to do at home, being able to learn how to handle basic repairs on the fly can save a homeowner big money, even if it comes at the expense of some convenience in the short term.
There are, of course, countless other examples of times where people can exercise restraint to stretch their budget further. Skipping out on features like heated seats in a car can save some money over the life of a car loan. Going with a plain pizza instead of one loaded with toppings can result in small savings.
Just by remembering that there are lower-cost alternatives at all times can help anyone to improve their financial mentality for the foreseeable future.
Small decisions over time can help fill a piggy bank and make a real financial impact
Procrastination: A financial obstacle
Procrastination is something that nearly every person is guilty of at one point or another. The reasons behind procrastination are complex and plentiful, but there is no form of procrastination more dangerous than financial procrastination.
When it comes to our finances, knowing how to avoid procrastination is important to just about anyone. Putting off things like paying off credit cards and other important financial obligations can hurt, as can procrastinating at work or other areas that can make money and eliminate debt.
The most important example of the impact of financial procrastination can be seen in loan repayments. If a person makes their payments slightly ahead of their due date, they can save money on interest over the life of their loan. Procrastination in making payments, especially waiting until after a due date to pay, can result in interest accruing and a loan taking longer to repay. That can make for a more difficult path to getting out of debt, all because of a flawed financial mentality.
In addition to procrastination being problematic when paying off loans, procrastination in getting the best possible deal on services can also be costly. Waiting to get a price adjustment on a television package, for example, can cost a customer hundreds of dollars per year that could have been saved by making a simple phone call. When it comes to finances, not waiting to lower your costs is one of the biggest adjustments to a financial mentality that one can make.
When it comes to financial mentality, the two biggest keys are to not waste time in saving money or making payments and saving wherever possible. Remembering that every decision you make has a financial impact that can last into the future is a way to avoid falling into the financial traps that some struggle with.