I started thinking about what it means to win with money, and concluded that winning with money has to do with contentment. Contentment in the money you have or are lacking, meaning winning with money has little to do with how much money you have and everything to do with how you handle your finances- your economic situation. However, financial pain is real, and contentment is further away when in the midst of a financial crisis- this means solutions to fill these financial gaps is your next best plan to allow you to stand on your feet and not turn to debt traps. Then you get back on track to figure out how to move forward towards financial stability.
Contentment starts by understanding your money situation. Knowing your income, monitoring your expenses and maintaining a surplus. To begin this journey to contentment we need a plan. Here are some important first steps:
#1: Choose a realistic and sustainable lifestyle.
It is financially stressful to live a lifestyle that our income cannot support. The goal to winning with money is to always maintain a surplus. Which means, after all bills are paid there is money left over. I realize it is difficult to envision this, especially when making ends meet feels unattainable. This journey is not easy, it entails difficult choices, sacrifices and getting creative. It could be a choice between getting a roommate or moving to a smaller apartment, taking on a second job or asking for a raise. Selling off some valuables, tutoring kids, watching kids, walking a neighbor’s dog for a fee, and on and on.
#2: Face your fears and reality
Many people dread looking at their finances for the fear of the unknown. Other people just avoid their finances all together and are not aware of where they stand financially. It is tough when you are barely making ends meet, however, you have to face it, know it, to fix it. You can’t fix what you don’t acknowledge or understand.
#3: Increase your income or reduce your expenses
Increase your income to meet your expenses and also vet your expenses. Prioritize Needs over Wants. Needs are food, transportation, shelter, expenses that are a necessity to live. Wants are things like vacation, entertainment, expenses that we can live without. The main goal here is to meet all our needs without using any borrowed money like credit cards, which bring about debt. Debt is a financial stressor and a great hindrance to financial contentment. Disclaimer- if you have to borrow, borrow wisely. Avoid predatory lenders like the plague.
In summary, pay all your bills with the income you earn and create no new debt. Include social service support in your budget as it is a resource that needs managed. If you have credit card balances make sure you are meeting the minimum payments. Get rid off the credit card to avoid the temptation of using them. Chop them up don’t cancel them if they are not paid up.
#4: Work towards having a surplus
Once you have consistently been paying off your expenses. Work on increasing your income or reducing your expenses so you can have a surplus. Use this surplus to cover debt payments, to put money aside for emergencies and other important savings buckets.
#5: Goals as the motivating factor
Why bother? why does this matter? that is the million-dollar question that should be the driving force for you. Have goals that are motivating enough to keep you on track. Why should you be disciplined in making financial sacrifices now? is it to reduce your stress level? maybe change your family’s financial legacy? or even to pursue a business venture or college without stressing about money?
Winning with money is the same for everyone. The key is always to live within your means, keep a sustainable lifestyle even when your earnings change, or life situations change your finances.
Money, like emotions, is something you must control to keep your life on the right track.” -Natasha Munson