How to Shift Your Mindset Toward Saving When You Have a Spending Problem

A few weekends ago, as I awoke to a day that was blissfully void of deadlines to meet and projects to produce, my first thought was what I needed to buy and what stores I could visit to fill my time. Given the newfound breathing room in my budget, this would be relatively okay — except I had acted on that thought the previous three weekends in a row. (Or maybe four. Okay, possibly five.)

In the wake of work pressure and moving stress, I had somehow shifted from a shopping only when necessary type of a person to shopping when induced by any type of uncomfortable emotion type of person.

And that, as many of us know, can quickly spiral out of control – without any of those feel-good endorphins you hope to experience when you whip out your credit card and purchase the latest _______ (enter your vice here).

So, I’ve been working on returning to a mindset where saving takes center stage and spending takes a seat in the back row. Here’s how I’m making it happen.

 

Recognizing Triggers

One of four emotions pop up any time I’m tempted to spend: boredom, anger, stress, or sadness. Here’s my thought process:

Boredom: Being bored triggers my fear of missing out which in turn makes me think that I need to spend in order to participate in all the awesome things the world has to offer.

Anger: I generally try to limit my spending and save as much as possible, so when something triggers my anger, I suddenly start sporting a “screw it” attitude and feel entitled to spend anything I want (even though I pay for it in the end).

Stress: Stress makes me want to make my life as easy as possible, so I’ll resort to anything that can make that happen – regardless of the price and exorbitant nature of the purchase.

Sadness: Sadness creates an overwhelming feeling of emptiness, which in turn pushes me to fill the void in a wide variety of unhealthy ways. Spending and eating seem to be the quickest remedies (even though the relief is short-lived).

What emotional triggers do you have when it comes to spending? Take some time to really sort through each and every one. Reflect on the past few times that you went overboard with your spending – what was going on in your life at the time and what emotions did it bring up?

Replacing the Habit

After working in the past to get rid of bad habits, I’ve learned that stopping cold turkey only ensures that the journey ahead will be entirely uphill. Instead, bad habits must be replaced – not just abolished.

Since you already know what your spending triggers are, it’s time to decide what action will now serve as a remedy in place of shopping. And no, simply deciding to talk yourself out of it isn’t enough of a replacement. After all, it’s clear that willpower is already taking a snooze on this one.

Here are my replacements (and this is still a work in progress):

Boredom: I notice that I feel particularly bored when I’m experiencing a lack of human connection. I generally always feel more alive after spending time with, or even just talking to, friends or family.

Anger: Anger tends to make me feel very trapped, so getting away somewhere out of my normal environment is key for me. Going for a drive and blasting angry music is far more productive and less guilt inducing than shopping.

Stress: Stress is something I need to confront head on with people that can help lighten my load. Once the conversation is had, meditation serves as a reset button that always makes me feel better (without fail).

Sadness: For me, sadness dissipates with gratitude. So, depending on the depth of my sadness, I start with a mental list of what I have to be grateful for and move towards something more tangible (journaling, etc.) until I feel better.

Start Getting Excited About the Bigger Picture

Saving is not something most of us naturally do. If we find that we are rockstars at socking away money at specific points in our lives, it’s generally because we were working towards something we were particularly pumped about. Even working to pay off debt can spark a certain type of excitement if we think of freedom as the end goal.

So if you aren’t hitting your savings benchmarks, it might just be because you find spending more thrilling than some nameless or somewhat boring financial goal you feel like you should be reaching.

Now is the time to either establish or reevaluate your money goals. Paint such a vivid, exciting picture in your mind that, even if it doesn’t completely stop your urge to spend, it at least makes you think twice before you do so. Better yet, announce them to those closest to you so falling short no longer seems like an option.

More at: http://blog.readyforzero.com/shift-mindset-saving-spending-problem/

 

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How I Paid Off My Debt in Less Than Two Years (and You Can Too)

Being in debt is something we all have a love-hate relationship with. We love the vacations, clothes, cars and stuff it can buy, be we hate to pay the bill at the end of the month.
After finally coming to grips with my dysfunctional relationship with debt, I decided to get out of debt once and for all. Here’s how I paid off $14,000 in just 14 months, and how you can too!

Step #1: Understand Your Money Personality

The first step that I had to take when facing my debt problems, was to understand my personality with money. Was I a spender? A saver? A combination of both or something totally different? Once I understood the way I handled money, it made it easier to overcome those temptations, or even head them off before it became a big deal.
The way we handle and view our finances depends on many different factors: how you grew up, what you learned from your parents and all the good or bad habits you picked up along the way. It’s vital we understand our own personalities and mindsets if we want to manage our money successfully.
If we can embrace both our weaknesses and strengths about ourselves, we can quickly create better financial habits. And that’s the key to accomplishing your financial goals — changing bad habits and reinforcing good ones!

Step #2: Create a Realistic Plan

Once I understood my mindset with money and what my debt pitfalls were, I created a get-out-of-debt game plan. I signed up for ReadyForZero and started plugging in my accounts so I could see an accurate picture of all my debts.
Yes, the amounts were overwhelming and the interest rate on some of the accounts were more than alarming. But then I realized how fed up I was with paying the banks and funding other people’s pockets with my hard-earned cash.
It was time to change!
If it was up to me, I would have been debt free within six months or less, but with an income of 36k per year, that just wasn’t a realistic goal. It’s important to create both an inspiring but realistic plan if you want to be debt-free. Otherwise you might set yourself up for failure and end up going in the wrong direction.

Step #3: Get Pumped Up

Being in debt has a way of dragging you down, both emotionally and psychologically, so instead of letting it weigh on your mind, day in and day out, it’s better to get pumped up and tackle your debt head-on.
How do you do this?
Well there are many different ways, depending on your likes and dislikes. For me, I liked having a visual aid, something I could look at every day to remember why I was making the financial sacrifices and that it would all be worth it in the end.
Some people call it “Dream Porn,” others call it a “Vision Board,” but whatever your method is just make sure that it gets you pumped up and excited about your debt goals.
If you and your significant other are working towards debt freedom together, turn it into a fun competition. See who can pay off the highest amount of debt each week. Get your whole family involved and make a game out of how much extra money you can find each month. Which brings me to my next point…

Step #4: Use the Power of Peer Pressure

Good peer pressure is a powerful thing, and can be used to your advantage if you learn to properly harness it. To really be successful with your financial goals it’s a good idea to get your friends and family on board with what you’re doing. In the very least, tell them about your goals and plans.
When you share your goals with your friends and loved ones, they can help keep you accountable — and maybe even become your biggest cheerleaders. The truth is no one achieves financial goals entirely on their own, so open up to your peers and allow them to help.
I can attribute a lot of my financial success to the support of the ReadyForZero community along with my amazing community of blog readers. Without the support of your peers, it makes an uphill battle seem nearly impossible. This kind of good peer pressure is what will help you succeed much faster and ensure your goals are accomplished.

More at: http://blog.readyforzero.com/how-i-paid-off-my-debt-in-less-than-two-years

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