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Here are a few things that will change the way you think about and approach your money.

Several factors play a role in improving your finances, such as knowledge, action, and even circumstances all matter. But even though these factors are important, don’t underestimate the power of mindset.

Now, Mindset alone will not put more cash in your account, but shifting your perspective on certain things can point you in the right direction. (Related: Download your mindful spending Money Mindset Bullet Journal — it’s your personal spending coach). 

1. Don’t get upset about dipping into your emergency fund

An emergency fund is basically a safety net for those unexpected moments like losing a job, facing a medical bill, or needing a sudden repair. Most experts recommend having three to six months of living expenses saved, but even a little bit can make a big difference.

Sometimes life throws curveballs, and you might need to dip into your emergency fund even when you are just starting to build it. And yeah, that can feel really frustrating.

It’s okay to feel upset about using your emergency fund, but remember why it’s there. That money exists to help you get through these unexpected situations, and that is exactly what it is doing.

You have to remind yourself of this often. I’ve heard from people who wanted to give up on saving because every time they made progress, something unexpected would happen. They would take one step forward and two steps back.

Here’s the thing: at least the money was there.

I get it because I’ve been there myself. The truth is, if that money wasn’t there, the situation could have been a lot worse.

At the end of the day, dipping into your emergency fund doesn’t mean you’ve failed or made a mistake. It’s a tool to keep you from going into credit card debt or borrowing money when life happens. And eventually, you’ll be able to rebuild it.

2. Know where your money goes

Knowing where your money goes is a game changer when it comes to financial stability and success. It helps you stick to a budget, make smarter money decisions, and actually reach your financial goals.

When you track your expenses, you start to see patterns and can spot areas where you might be overspending. For example, if you realize you’re spending a lot on dining out, you can make a conscious choice to cook at home more often and save some cash.

Understanding your spending also makes big financial decisions easier. Without a clear picture of your expenses, it can be tough to know whether you can take on extra debt, invest in something new, or make a large purchase.

Tracking your money is also what helps you hit your goals. Whether you’re paying off debt, saving for a house, or planning for retirement, knowing exactly where your money goes lets you prioritize your spending and put your funds toward what really matters.

3. Figure out what’s holding you back

If you want to move forward financially, the first step is figuring out what might be holding you back. This could be anything from bad money habits, not knowing enough about finances, limited income, or having too much debt.

Ignoring these problems might feel easier in the moment because it reduces stress or anxiety, but in the long run, it can cause bigger issues.

Once you understand what is holding you back, you can start making a plan to tackle it. For example, if debt is the problem, focus on paying it off before trying to save for other goals.

If you feel like you lack financial knowledge or skills, take some time to educate yourself or get guidance from a financial advisor. Ignoring the issues will only keep you stuck and prevent you from reaching your goals.

Facing these challenges head-on lets you make real progress. It might take some self-reflection and honesty to figure out what’s really holding you back, but doing so is a key step toward financial success. It also gives you a sense of control and confidence over your money and your future.

4. Grow and nurture your own grass

Comparing yourself to others can make you feel inadequate, jealous, or just plain dissatisfied. The truth is that everyone’s financial journey is different, and using someone else as a measure of your success is not fair or realistic.

Comparison can also create unrealistic standards that do not match your goals or values. It might even lead you to spend money you do not need to keep up with others instead of focusing on what really matters to you.

Feeling like you are falling behind can be discouraging, but it’s important to remember that everyone faces challenges and setbacks on their own path. Progress is not always a straight line.

Instead of looking at what others are doing, focus on your own goals and celebrate your wins. Take steps to improve your financial situation at your own pace. If you need guidance, consider reaching out to a financial advisor or mentor for support.

The bottom line is this: comparing yourself to others does not help. When you spend time worrying about what everyone else is doing, you have less energy to put toward yourself and your own progress.

5. Having money doesn’t mean you can afford it

Just because you have money does not mean you can really afford something. Affordability depends on more than just what is in your bank account. Your income, expenses, and financial goals all play a role.

To truly afford something means you can pay for it without stress or sacrificing other important financial obligations.

For example, you might have enough money to buy a new car, but if it leaves you with little or no savings, a financial emergency could put you in a tough spot.

The same idea applies if you are pre-approved for a mortgage. Your pre-approval amount is the maximum a lender will lend. Lenders base this on your gross income, not your take-home pay, and compare it with debts and expenses listed on your credit report. But many of your real expenses, like insurance or daycare, are not included.

This means the amount a lender says you can afford could be way higher than what you can actually handle. Buying at the top of your budget can cause problems, so do everything you can to stay below that limit.

6. Be content

Contentment is about being satisfied with what you have instead of always chasing more. In terms of personal finance, it can make a big difference.

Being content can help you avoid unnecessary spending. If you are happy with what you already have, you are less likely to feel the need to upgrade or replace things, which can save you a lot of money over time.

It can also help you focus on your financial goals. If you are satisfied with your lifestyle, you are more likely to save for long-term goals, like retirement or a down payment on a house, instead of spending on short-term wants.

Contentment can even reduce stress and anxiety around money. Constantly comparing yourself to others or feeling pressure to keep up with trends can create a lot of financial stress. Focusing on contentment lets you concentrate on what really matters to you.

Being content also helps you appreciate the non-financial parts of life, like relationships, hobbies, and experiences. When you value these things, you need less money to feel fulfilled, and life feels more balanced and satisfying.

Being content does not mean you cannot improve your life. It simply means that what you do not have does not control your happiness.

7. Coupons are only a good deal when

Coupons can be a great way to save money, but only if you use them wisely. Using a coupon just for the sake of using one can actually lead to overspending and stress.

Before you use a coupon, think about whether the item is something you really need or were already planning to buy. If it is not, using the coupon could just create clutter or waste.

Coupons can also tempt you into impulse buying. If you use a credit card and do not pay off the balance in full, the interest charges can wipe out any savings.

On the other hand, if you were already planning to buy the item, a coupon can be a smart way to save and free up money for other expenses or your savings goals.