When it comes to money, I am far from perfect, goodness knows. However, I have learned a few valuable (at least to me) lessons in my own money journey. Today I asked myself what I would say if I were sharing these lessons with a friend.
Financial Lessons I Have Learned
- You don’t have to be perfect. Being good with your money is not about perfection. It’s about paying attention. You don’t even have to be great at all aspects of it. There are many facets to managing money, including earning, controlling spending, financial planning, debt management, savings/investing, allocating cash flow. Most people aren’t experts at all these. I’m not. Lean on the one/s you are best at, and aim to be decent at the rest.
- Don’t underestimate the power of small moves. The right things add up: paying off a little extra to your debt or mortgage, saving a little more, or earning a little more. The power of compounding is amazing once you start to leverage it. Dare to believe in your power and just start leaning in a positive direction. Results will show.
- If you are prone to money-related stress, try not to believe your own brain. If it catastrophizes or judges you, remember that thoughts are not facts. Just cuz your brain talks at you does not mean that what it is saying is true. (On the other hand, if you are blessed with an easy-going mindset about money, it is a blessing. You got things to teach me.)
- Try not to compare yourself to others. Everyone is different. Everyone’s situation is different. If you are going to compare yourself, compare yourself to where you were 5 or 10 years ago. How has your financial situation improved? Our situation has improved drastically largely due to smarter spending and re-allocating money to savings and investments.
- Your money does not define you. Your income, networth, savings rate, or overall financial success do not, I repeat do not equal your self-worth!
- Remember that areas that challenge you are exactly the areas where you stand to grow the most. I have learned a ton on my money journey, perhaps more than any other area due to the need to overcome old limited beliefs and misconceptions.
- Count your blessings. I mean this literally. Make a list of the ways in which you are financially blessed, talented, fortunate, resilient, or successful.
Here’s my list of financial blessings:
- I am good with numbers and spreadsheets.
- I am a patient planner.
- I am good at learning new things (such as educating myself on money matters)
- I am naturally frugal.
- I have an optimistic attitude about investing in the stock market.
- I do work I love, and my work allows me downtime for reflection, replenishment, and creativity.
- I have a partner I cherish.