Reactive Versus Proactive Financial Habits

Do you feel like your financial frustrations and instabilities are a result of other people’s actions, uncontrollable forces, or just pure bad luck? Instead of fixating on the elements in your financial life you can’t control, identify and take action on the parts you can control. If you become proactive, rather than reactive, you’re increasing the likelihood of seeing the results you want. Try these three ways to counter reactive thinking:

• That Unpredictable Market: You may feel constrained by ever-rising prices or high interest rates. “Why is everything so expensive?” you may ask. One major way to counter inflation and tempting purchases is to create a monthly budget for your family. Assess how much you can afford to spend each month on bills, and ideally still have at least 20 percent of your paycheck left to save. Challenge yourself to bargain-and-necessity shop wherever possible to keep your family on budget. If you are controlling your spending, but still are struggling to pay your bills, consider pursuing a second career that will generate additional income to help you reach a place of financial comfort.
• Bad Luck Blues: No one wants a tree to land on their house, or their car to mysteriously give up in the middle of a highway. But accidents happen. If your finances can’t grow, you believe, because events like these will wind up draining your account all over again, reconsider your opinion; just because these expenses are unexpected doesn’t mean they necessarily need to be disruptive! Set a goal of creating an emergency fund within the next six months to a year. A helpful starting amount for most people is a savings large enough to cover one month’s unemployment.
• A Big Pay Day: You want to save for retirement, but don’t think you can afford to just yet: when you get your big pay-out, you think, then you’ll begin your nest egg. But avoid waiting for some kind of financial windfall to start your savings momentum. Take yourself out of the disadvantage of waiting and into the advantage of action. Instead of relying on “some day,” remember that small amounts, over lots of days, grow to a much larger figure before you know it!

To learn more ways to improve your financial life, visit the Syncis blog at https://www.syncis.com/blog/.