Do you experience financial instability? Financial insecurity can manifest itself in a variety of ways. For example, my grandmother became a hoarder as a result of living through the Great Depression. This led to significant costs in terms of unhealthy behaviours and insecurities linked to the fear of recurring hardship. Perhaps you have also encountered this kind of worry, either personally or through someone you know.
While there are undoubtedly some factors beyond your control, it is possible to overcome financial insecurity. By learning how to manage your money, you can get out of debt, start saving, and build wealth.
5 Tips to Overcome Your Financial Insecurity
These 5 tips can help you overcome financial insecurity, whether it stems from an unsupportive partner or childhood experiences.
1. Use Affirmations of Gratitude To Combat Financial Insecurity
Positive affirmations are one of the most effective ways to overcome financial insecurity. In fact, MRI studies have shown that self-affirmation practice can enhance brain pathways! This means that by “rewiring” your brain to think more positively, you can change your behaviour.
That said, you should say, “I have an abundance of money!” instead of, “I’m always broke.” By telling yourself you have plenty of money, you’ll start acting accordingly and developing the habits needed to make it a reality.
For example, your positive affirmation will motivate you to work towards your financial goals and resist impulse purchases when you’re tempted to spend money on something unnecessary.
2. Set Short- and Long-Term Goals
What are your short- and long-term financial goals? For example, would you like to save £10,000, go on a dream holiday, or buy a house?
Setting financial goals can help you overcome your insecurities by shifting your focus from negative money feelings to something constructive. Creating a vision board is a great way to inspire yourself to achieve your goals.
A vision board is a visual tool that helps you stay motivated by serving as a constant reminder of your goals. You decorate it with pictures, quotes, and goal-oriented positive affirmations.
For example, your board might feature a phrase about financial freedom or a photo of Hawaii. Whatever your goals, it’s a fantastic way to stay motivated.
3. Become Financially Literate
Many people experience financial insecurity due to a lack of understanding of basic financial concepts. For example, some people completely avoid investing because they’re scared of it.
To prevent your lack of confidence in money from holding you back from achieving your goals, learn everything you can about it!
Watching financial films, listening to podcasts, and reading books are all great ways to learn everything you need to know about managing your money effectively.
4. Take Financial Responsibility
Having “money blocks” is a major contributor to financial instability. For example, you might procrastinate dealing with your finances, leading to debt build-up and late payments.
Taking control of your finances is the best way to overcome your financial insecurity! Start managing your money today by taking these three steps:
Create a spending plan
The first step to starting to manage your finances is to create a budget. A budget allows you to accurately track how much money you earn and spend.
Choosing a budgeting method that’s easy for you will help you stay on track and avoid setbacks. If you choose something too complicated or time-consuming, you’re less likely to stick with it.
The 80/20 rule is one of the most popular budgeting methods because it’s very simple to follow. You set aside 20% and spend the remaining 80% on other expenses. This helps you prioritise saving without adding unnecessary complexity.
Keep a spending diary
By recording your feelings alongside your transactions, a spending diary can help you identify any underling financial insecurities.
For example, you would note in your diary what you bought, how much it cost, and how you felt at the time of purchase. Using this powerful tool, you can regain financial control and stop overspending.
Automate your finances
Automating your financial processes can streamline your budget. This makes managing your money much easier as your savings and bills are set to run automatically.
For example, you can set up your savings account to receive an automatic £50 transfer each week. This helps you avoid spending that money and instead grow your savings. It also prevents late payment fees on bills, saving you money.
5. Celebrate Your Financial Successes
Are you noticing any positive changes? Rewarding yourself for financial achievements helps to reinforce good habits. Celebrating reaching a goal encourages you to pursue further targets! This is a powerful way to combat financial insecurity. It will boost your self-esteem and confidence.
You can treat yourself in many ways, even on a budget! You could have a staycation or visit the park, for instance.
Just make sure it’s something you enjoy so you’ll want to reward yourself more often and achieve more goals. So start celebrating your money wins, no matter how small!
You can overcome financial insecurity. The most important thing to remember is to be patient with yourself. Overcoming financial insecurities takes time and effort. However, you can combat financial insecurity by using these tips.
Starting with positive self-talk encourages action by reinforcing good financial habits.
