Three Ways to Take the Emotions Out of Your Money

  • Jul 09 2013

Many of us on this journey to financial freedom, find it hard to stick to the plan long-term because it's extremely hard to change our behaviors when they are so ingrained in our society. However, changing your behavior, in regards to money, is the most important step in realizing the benefits of a zero based budget. Dave Ramsey often states that, "personal finance is 80% behavior. That means living on less than you make is a matter of controlling yourself, not a matter of math." After struggling through this dilemma for years, I have found three calls to action that will help you take the leap.

Establish Habits

The main objective of a budget should be to make it a habit and subsequently a learned skill. Henry Ford once stated, "If money is your hope for independence you will never have it. The only real security that a man will have in this world is a reserve of knowledge, experience, and ability." You must stick with the monthly budget cycle for results to occur.

Create a Plan and Goals

One must plan and put themselves in the proper place in order to realize opportunities and the overall mission for your life. Once you give your money a job and a plan then you will be one step closer to realizing your life's work. A form of this that works well for me is to create 10 goals annually that push me to strive harder toward my overall goal of financial independence. "The plans of the diligent lead to profit as surely as haste leads to poverty." - Proverbs 21:5

Reject Immediate Gratification

Through self-discipline and dedication to a larger goal, such as well-being of your family, one will be more motivated able to obtain their calling. Whenever you endeavor to reject immediate gratification in your life, by changing your behavior, doubt and resistance will show up. Steven Pressfield elegantly addresses this concept, "in other words, any act that rejects immediate gratification in favor of long-term grown, health, or integrity. Or, expressed another way, any act that derives from our high nature instead of our lower. Any of these will elicit Resistance."

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