How to always feel financially secure is just about that, the feeling you let yourself have when it comes to money. It’s not about the exact amount of money you have but rather how you feel about the money you have!
Read those lines one more time… That feeling I’m talking about is the difference between living an abundant life and a life of financial struggle with a feeling of never having enough.
Stressed about money?
I don’t want you nor anyone else to be like the 62% of Americans who say that they stress over money (second most stressful thing in their lives according to APA). We all know we are responsible for our emotions and that we can change those by just altering how we think. If you don’t believe me, think about something you are grateful for in your life right now (big or small). If you make it vivid enough in your mind, it will for sure alter your state to one of happiness and gratitude.
The same goes for money, but to make it slightly easier there are a few simple things one can do to always and immediately feel financially secure. Our “usual” thoughts about money are based on our habits and experiences and the more we think the same thoughts, the deeper those thoughts are rooted.
The simple steps to feeling financially secure
- Taking control over your finances is the first step because when you are in control, you know in your heart that you don’t have to be stressed about money and that is a great feeling. The implications of living in stress are not the ones you want to have in your life. It might take some more work in the beginning but once you start making clear progress, you will start feeling great and it will just become better and better. If you have not gone through our sessions on Wealth, I would suggest you start there as it will take you through how to do it.
- Make sure you spend less than what you make. If you always do this, you will never have any financial worries (at least not any big ones).
- Pay off your debt as you want the money to stay in your pocket and not end up in someone else’s. The first step is to make sure you pay the full balance on your credit cards and other loans every time so that you are not hit with additional fees and charges. The second step is to start paying off the most expensive ones. We have a separate session on this topic so please check that one out as well as our post on Credit Cards.
- Have a savings buffer of 6 – 12 months worth of expenditures in a savings account. Why not impose a “wealth tax” on yourself (as if it were to come from the government) of 20% of your salary and put in a separate savings account every month. Every little counts. I would also recommend you to read our post on The Bucket System – Automating your Finances. Just by always knowing you have money in case you need them will reduce any financial stress significantly.
Changing your money mindset
When you are in control over your financial situation (spend less than you make) and have a savings account with 6 – 12 months worth of expenditures you will feel pretty good about money. The key thing to do then is to make sure you nurture a mindset of always having enough money. To feel financially secure is a great feeling and the more you focus on it the deeper it will sink into your brain and create a new money mindset (new neural networks). One of financial security.
What I personally do and would recommend is to make sure you start saving asap unless you are already doing that. Make it automatic and set up a standing order from your salary account into a separate savings account from where the money goes the same day your salary hits your account. This is of course individual, but I would suggest around 10% and the more the better (the faster the account will grow)!
Watch the account grow month by month and if you want it to grow faster, transfer a bit extra those times you skip buying something you don’t really need, like that fifth t-shirt (or whatever it is). It will grow faster and you will feel even better about money.
Every time you see something you “want” to buy, reflect upon what your mind is telling you. Maybe it is “I can’t afford that”. If so, stop yourself in that thought and tell yourself:“I have enough money, but do I really, really need it or is it just a want?”. I have access to my savings account and I decide what to buy or not to buy. Is my financial security more important to me than this product? Do I always want to feel financially secure or do I really need this product?
When you do this, focus on all the money that you will have in your account in the future as if it is already there. You have to make sure you get the feeling throughout your whole body of actually having enough, only thinking it won’t work (at least not as fast). Practice makes perfect but if you know how much money you want and are working towards getting there it will be quite easy to get those feelings of financial security. I also hope you are using your goal sheet and your vision board (learn more about them here) to make it your reality as fast as possible!
I personally used to do this, remind myself that I can afford this or that but that it is currently not a priority (unless it actually is). By doing this every time a thought of scarcity pops up, I was rewiring my brain and my money mindset. Now I never have to stop and think anymore to force feeling financially secure. My brain is always telling me I can buy anything I want and I know it to be true. The only question is whether it is a priority in my life or not and guess what… Most of the time it is not!
Try this simple technique every time you are tempted to buy something and work on changing your money mindset and your life will never be the same! It will of course be easier the more you grow your account but the two will go hand in hand. Your money will grow as you shift your money mindset and your money mindset will change as your account grows!
Actions to take:
- Learn The Language of Money – a language for life
- Get our free e-book Money Mindset “Hacks” from our Wealth Section
- Check out our post on How to always have enough money
- Making money on money – read our post on the compounding effect