Have you ever wished that you could start over financially?
Wouldn’t your financial life be easier if you could have a fresh start with what you know now?
Here’s the good news: you can hit the financial reset button at any time.
And there’s no better time than now. Here are some tips to financially reset.
Tip #1: Check-In With Your Mindset
First, I encourage you to take a look at your mindset.
Because if you’re looking to start over financially, chances are that you are not in the best emotional place right now.
You might be feeling scared, anxious, overwhelmed, worried, stuck — heck, there might not even be the perfect word to describe how you feel.
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I know, because I’ve been there myself.
But sometimes in order for positive change to happen, you need a brand new mindset. New lenses through which you evaluate your budget. A clear mind.
As you think about your mindset, I’d encourage you to evaluate these areas:
- Growth. It’s impossible to experience change and true financial fulfillment without a growth mindset. Rather than filling you with feelings of shame, this mindset should give you feelings of hope and excitement as you realize there’s so much more to learn about yourself and how you can better manage your finances.
- Abundance. It might not feel like it right now, but there is plenty of money and resources to go around. You see, when we’re in a bad financial situation, it’s easy to put on the blinders and think that we live in a world of scarcity, but scarcity causes us to act out of fear. Do you make your best decisions when you’re afraid? I’d wager not.
- Positive. A positive mindset doesn’t mean that you can’t use critical thinking or find flaws in your budget. On the other hand, what a positive mindset does is give you the momentum and the energy to keep going when things get tough. You’re working towards something rather than away from something.
It’s easy to jump right into the budgeting aspect when you want to start over financially, but if it was that easy, wouldn’t everyone be out of debt? Wouldn’t everyone be able to stick to their new year’s financial resolutions?
Instead, I encourage you to begin with your mindset so that you can successfully get back into the basics!
Tip #2: Track Your Spending
In order to successfully create a budget blueprint for the new year, you need to know some basics.
One of those basic factors is how much you spend.
For most people struggling financially, it’s tempting to ignore expenditures. Why? Because we as humans have evolved to avoid pain. This is how our species has survived thousands of years.
Spending turns into an “out of sight, out of mind” situation, but that actually makes the situation worse. In order to truly start over with your budget, you need to know how much you’re spending.
Even if this feels uncomfortable, I don’t want you to feel feelings of shame or discouragement. If those ideas pop into your mind, acknowledge them, and then say goodbye. Don’t dwell on them.
That’s why I wanted us to focus on our mindsets for Tip #1.
Instead, just look at the numbers objectively.
If you don’t track your spending, then it will be truly impossible to decrease your spending and identify places where you can successfully cut back in the long run.
If you need help tracking your spending so you can start over, I’ve created a FREE budget blueprint course that you can begin today.
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Tip #3: Know Yourself
In the ideal world, finance would just be math.
If you spend less than you make, then you should be financially okay.
Unfortunately… real life isn’t that easy. If it were, then everyone would be in a great financial spot. The reality is that money is more than just simple math.
We all have triggers, experiences, and perspectives unique to the lives that we’ve lived. This is why it is so difficult to give broad financial advice because what resonates for one person, might not have the same impact on someone else.
So what does it mean to know yourself in a financial sense?
Consider some of these factors:
- Are you good with cash? If you’re good with physical money, then using the cash envelope system will help you start over financially immediately. If physical cash is too overwhelming, then that’s a good thing to know about yourself. Instead of using cash for envelopes, you can try it cashless!
- Do you have any near, mid, or long-term goals? Forget about new year’s resolutions. Think about the goals you have. Do you want to bring your kids to Disney World? Are you hoping to transition from apartment living to owning your first home? Knowing your goals is critical to establishing a realistic (and achievable) budget to help you accomplish those goals!
- What do you need to stay motivated? Starting over financially isn’t just about creating a budget. It’s about creating a system that gives you the best tools, resources, and emotional support so you can stay on track. Don’t be afraid to acknowledge your needs and wants.
Knowing yourself isn’t just a feel-good tip. It is also a practical way to give yourself the support you need to not only start over, but stick to a new budget!
Tip #4: Plan for Unexpected Expenses
If these last few years have taught us anything, it is that life is full of surprises.
From politics to the pandemic to weather events, who could have possibly foreseen what’s happened over the last few years?
These events affected all of us, not just emotionally, but financially as well.
Whether you had money in the stock market or experienced income loss due to the economic disruptions of COVID, we have all experienced some sort of unexpected cost.
One of the components of creating a good budget is having an emergency fund. This should be different from your savings fund or retirement accounts.
An emergency fund isn’t built overnight, but by starting today, you’ll have more financial peace of mind and fulfillment knowing that you have an extra “cushion” you can fall back on if you need to. In fact, having an emergency fund might even prevent you from having to “start over” in the future.
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Now, that raises the question: how do you save for an emergency budget while you are also trying to pay off debt and pay the bills?
This is why Tip #2 (tracking your spending) is so important! By tracking your spending, you can eliminate wasteful spending and make sure that every dollar has a job.
Each financial tip and component is a building block that makes the next step possible.
Tip #5: Use a Budget Blueprint
You can’t keep doing the same thing over and over again and realistically expect a different result.
This is exactly why I created my FREE budget blueprint course with proven techniques and strategies to help you get the fresh start you need.
In the free course, we’ll discuss:
- What is a budget?
- Where to start
- Understanding your income
- Making your budget realistic
- Identifying what your budget is missing
- How to organize your bills
- Strategies to track your expenses
- How to use the cash envelope system
If you want a fresh financial start, you might not know where to begin.
Well, this course has done the heavy lifting for you. Step-by-step, we will cover what you need to do to create a successful budget using the cash envelope system.
Commit to making this year the year that you stop having to constantly worry about money.
Does that sound nice?
Don’t just dream about it. Claim it and take action today!
Awesome article! I needed this. If I’m honest, I always overspend in December. I realized that I become very relaxed on tracking my expenses, having self control, and staying on budget. Now that I verbally told myself that, I’m having to change my mindset and a few things to get back on track.
Hi! Relevant to starting over – how do you start over when you are a month behind on everything – how do you catch up? would love a youtube video about that.
thanks so much!