Five hard lessons I learned about Money
Talking about finances has become something I really enjoy doing. It used to be an extremely uncomfortable topic for me. However, I realized that we can only do better when we start having honest conversations about money. In our quest to accomplish financial independence, there are a lot of great things that we can do.
In this blog post, we will explore the five lessons I have learned about money over the past years.
#1: Have a healthy relationship with money
It took me a while to realize that I did not have a healthy relationship with money. Thinking about my finances caused me a lot of fear and anxiety. I used to say that my greatest fear was being broke. These feelings dictated how I treated money in my life. I was overly conservative with spending my money and was hesitant to make bold money moves like investing my money.
Strategies to consider
Reflect on your relationship with money
Identify the decisions you are making based on negative feelings around money
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#2: Save your money
Growing my savings was one of the first lessons I learned on my path to financial independence. I knew that I had to be disciplined about saving my money to get out of my constant lack. I started with saving a small amount and increased over time. Being able to achieve my saving goals has helped me become financially independent.
Strategies to consider
Set your saving goals
Create an emergency fund
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#3: Spend money on the right things
For the longest time, I held onto my money and did not want to spend it. Over the last few years, I have learned that I need to spend my money on things that make me comfortable, help me grow and live a great life. It took me a while to learn this valuable lesson.
Strategies to consider
Identify the things you want to invest in for your growth
Invest in yourself and things that grow your money
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#4: Learn about finances and grow your knowledge
There is a lot we can all learn about finances. I had to seek out information about finances as I started making my decisions when I moved to Germany. Talking about money was not an open topic when I was growing up. Many people that I speak to also share similar experiences as well. I have prioritized educating myself and learning about financial strategies that are new to me.
Strategies to consider
Identify an area of your finances that you want to learn about
Seek out ways to learn more
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#5: Know your status and set financial goals
At any given time, it is particularly important to know what your financial status is. Knowing your income, debt, expenses, and other aspects of your finances is the minimum. It might feel scary to take stock of your status. However, having clarity will help give you some peace. Once you know where you stand today, it will be easier to plan for the future. As part of your goal-setting process, ensure you have your financial goals as well.
Strategies to consider
Take stock of where you are financially today
Set your financial goals
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Final Thoughts
To accomplish financial independence and growth, we need to be very intentional. The great news is that we have the power to achieve our financial goals.
Time for Reflection
Do you know your financial status?
What lessons have you learned about finances recently?
What is one big financial goal that you want to accomplish in 2022?