Mastering money management involves a combination of wisdom, courage, strength, and audacity. As we know, these intentional actions and skills require effort to implement and acquire on a continuous basis. However, having discipline, determination, and a clear strategic financial plan have long-term rewards that far outweigh daily sacrifices. They also create far more stability than the alternative: forming lifestyle habits that plague subsequent generations with poor money management examples, excessive debt, and low credit scores.
Here are 5 best practices you can implement today to shift your money mindset and begin building generational wealth.
1. Spend time rather than money.
Enjoying new experiences with loved ones is worth far more than any material possession. Try focusing on creating a lifetime of memories instead of new bills and deeper debt.
2. Plan your spending by setting a budget for trips, holidays, and special events.
You can certainly enjoy the special moments in your life guilt-free by planning ahead. As you begin setting aside funds from each pay for your upcoming event, remember to only include what you can spare without the help of credit cards, loans, or borrowing money from your savings.
3. Consider starting a saving account, purchasing stocks and bonds, or a college savings plan
instead of buying toys and gadgets for the young ones in your life. This investment will last much longer than the fleeting joy of a trendy toy.
4. Pay down debt with the money you would have spent on gifts.
It is more than acceptable to let your friends and family know that you would like to focus on spending quality time over a ton of money on gifts this year. Focusing on decreasing your debt and establishing your financial independence will be a cause for celebration for everyone in the long run.
5. Give to someone less fortunate.
At this time of year, it’s important to remember that there is always someone who has nothing this holiday season. A great way to spread holiday cheer is by giving your time, love, and money to help someone in need. One of the greatest benefits of developing financial ambition is the ability to regularly give back to your community.
If your time or resources limit you from committing to all five of these mindset changes, try committing to at least two of them. Let’s focus on ending the year in the black to build a strong financial foundation. With simple mindset shifts, you can create a better tomorrow for yourself and generations to come.