How to Mindfully Conquer Financial Resolutions
By McKenna Uhde
What is it about New Year’s resolutions that keep them from sticking? Oftentimes, while our choice to make change is intentional, our resolutions aren’t in line with our values, desires, or goals. In this case, choosing a financial resolution based on ease or popularity may lead to your mind and body rejecting the idea, becoming frustrated, shutting down the operation, and then feeling disappointed when you didn’t stick to it as you intended. Because “I’m going to put 20% of my earnings this year toward my retirement,” seems like an easy enough goal… But not if this amount of money prevents you from inviting fun and spontaneity into your life if that’s what’s important to you. And yes, there is a world in which you can have it all: by identifying and acting on your own true values.
What are your financial values, and why are they important?
Financial values are the principles that we use when making financial decisions. These values guide us when making important life choices. Not only asking yourself, am I spending my money wisely, but also, what does “wisely” look like to me? Financial values can be really deep and powerful. For instance, some people have a need for security while others yearn for freedom or independence; some spend money on experiences while others choose meaningful possessions that make their lives comfortable. Several HIP guests have shared the importance of financial values so we can make more conscious decisions about how to manage our finances in order to achieve what matters most to each of us!
Financial values are the key to our success. If you’re not sure what your personal financial values are, ask yourself these questions:
What do I value most in life?
How would my ideal day be spent?
What do I like to or hope to spend on?
What do I like to or hope to save for?
What is one thing that has been on my mind lately and why does it matter so much to me?
When have I felt happiest or saddest as a result of money-related decisions?
Identifying your most important financial values will help give direction for making more informed spending and saving decisions going forward. Knowing your values is an essential step to achieving financial security, happiness, and health.
What are the top 3 most important values for you? Based on those three values, what should be your next investment or savings goals?
Listen further: Financial Series: Uncovering your Values with Tonya Rapley of My Fab Finance
Read: The Money Manual: A Practical Money Guide to Help You Succeed On Your Financial Journey
Set yourself up for small wins.
Have you ever put too much on your to-do list and felt paralyzed by the workload or disappointed in yourself when you didn’t accomplish every task? People often find themselves in a similar situation when setting goals for a new year. That’s not to say that lofty financial goals can’t be accomplished, because they absolutely, most certainly can. An important reminder here is while you may have a larger goal like “save 1,000 dollars a month this year” the long-term benefits of that goal aren’t seen yet. Setting smaller goals may help keep you motivated on this journey. Consider setting an additional, small, short-term goal like “learn about investing,” “end streaming services for 6 months to save money and focus on reading more,” or “only dine out for $15 or less this month and try all the cool, cheap eats in your neighborhood.”
“Small wins” doesn’t mean saving for a physical reward, it’s about seeing that you can accomplish something that you know is good for yourself, and keeping your confidence levels up. That way every so often you’ll be reminded of your financial capability, and will feel more secure in your choice of a long-term financial commitment.
Listen further: Financial Series: Investing with Bola Sokunbi, CEO of Clever Girl Finance
Read: Grow Your Money by Bola Sokunbi
Hone in on quality time.
The key to feeling fulfilled on a tight budget is to make choices that are both financially and emotionally rewarding. Frustration is natural, but nothing makes a financial goal harder than feeling like you’re trapped. Brainstorm a list of free activities that you would do even if you weren’t on a budget, and make time for those. Cook for others instead of going out. Stay in and give yourself a spa treatment. Join a book club. Join a run club. Maybe the one thing you buy yourself this month is one of Brittany Williams’ cookbooks for eating healthy on a budget! Frugality doesn’t equal isolation.
Are you a service-oriented person? Maybe you can’t contribute to a fund right now, but volunteering is always free and fulfilling.
Listen further: Financial Series: Healthy Eating on a Budget with Cookbook Author Brittany Williams / Financial Series: Serving your Community with Financial Life Healer Louis Barajas
Recognize that financial stress is real and, I’ll just say, awful. Aka: take care of yourself.
We recognize finance and its important relationship to our overall wellbeing, and if I can recommend any priority when taking on new financial goals it would be to keep your stress level down. There will be times when financial hardships are unavoidable, but it’s important to remember the bigger picture, make time for healing, and see this as a growth opportunity. Making time for meditation, reflection, and fun is just as important as saving and budgeting.
Don’t keep anything in. Tell your friends that you can’t go out to eat because you’re assessing your financial values, but that you’d be happy to have them over for drinks. Have tough conversations with your partner and loved ones. Feel free to tell people about your debt - chances are they are experiencing much of what you’re going through or will have some advice. Letting out your thoughts and feelings on finances to someone you trust might be the perfect way to relieve stress and anxiety during this time, and to remind yourself that you are not alone.
Listen further: Financial Series: Health Financial Conversations with SavviHer Founder Brittan Leiser
Fight financial stigmas with us. Listen to the entire Financial Health Series. And get more financial tips on our Instagram.