16 Tips to End Your Money Stress for Good
1) Week 1: Get Organized
It's time to face the money, which can be the scariest part! When I gathered all my info this way for the first time, I felt as if I were walking into a room with all my bad decisions, and they were staring me in the face accusingly. My finances were in a state of disarray, due to an abusive relationship followed by my decision to ignore my money as a coping mechanism. When I finally looked at my situation, I had to remind myself, These are just numbers, and by looking at them, I was putting the power in my own hands. This step helps you get comfortable with your money so you can use it wisely. Knowing where you are financially is the only way to move forward.
2) Week 1: Gather Your Supplies
Do you have a place to record your numbers and your thoughts? A simple notebook or a financial organizer will help you keep it all together. Also consider a physical storage solution such as an accordion binder or, ideally, something more secure, like a safe.
3) Week 1: Make a List of Your Accounts
You can do this! Include things like bank accounts, investments, and loans, and be sure you have the passwords for all of them (and do not judge yourself if you have to reset every single one because you’ve forgotten what they are).
4) Week 1: Write Up Three More Lists
Once you've got all your accounts in front of you, this will be a snap. List your debts (don't forget the $60 you owe your sister), cash on hand, and assets like retirement accounts and home equity. You'll refer to this when you start making choices about your next steps.
5) Week 2: Prepare Yourself Emotionally
Now it's time to face yourself. I've seen a huge range of emotions from my clients: Some are afraid of not having enough or making bad decisions; others feel guilty over past choices or even what they do have. Our money stories are so personal; it's important to understand yours so that it won't get in the way of your goals.
6) Week 2: Identify Your Challenges
Recognizing problems that might prevent you from achieving your goals gives you the chance to create work-arounds. Common challenges include: a lack of time or resources, a need for more information, spending triggers, and family or friends. Write down what's holding you back and know it's nothing to be ashamed of - look back at your wins if you need to.
7) Week 2: Create Solutions
I firmly believe that if there is a challenge, there is a solution. So focus on each of the challenges you listed and think about how you can address it. You are not powerless! Use these examples as inspiration:
CHALLENGE: I'm too busy to think about the side gig I'd like to try.
SOLUTION: Commit to just 20 minutes per day. That will make it easier to find help with kids, put aside chores, or stay up a teeny bit later.
CHALLENGE: I don't know enough about investing to do it right.
SOLUTION: Get familiar with the basics using helpful sites such as Khan Academy and Creative Live, sign up for a class at a community college, or ask family and friends for recommendations for financial planners.
8) Week 2: Keep a Spending Log
Track every single purchase every single day this week. Put an "N" next to the ones that are needs and a "W" next to ones that are wants. At the end of the week, reflect on those "want" purchases: How were you feeling when you made them? How do you feel about them now? Are they getting you closer to your goal?
9) Week 2: Celebrate Your Wins
Instead of reflecting on what you haven't done, pat yourself on the back for what you have. Without limiting it to your finances, what have you accomplished that makes you proud? The traits required to achieve those things can push you closer to your financial finish line.
10) Week 3: Take Action
I wish I could say it's the easiest week, but ... that's not it. This is when you have to stop all the thinking and start doing. Prior to improving my own financial situation, I read book after book, but knowledge needs to be applied. Once I did that, I improved my credit score by 130 points in 18 months. Do not put off the action!
11) Week 3: Find a Partner
I've found that enlisting support and encouragement from others has made all the difference for me. When I first started My Fab Finance, I used the community reading the blog to hold me accountable. Look for somebody - or a few somebodies - who also has a financial goal so you can provide accountability for each other. Schedule regular check-ins so you can monitor progress and offer support.
12) Week 3: Start New Systems
Choose a solution from last week and put it into place immediately. If you need tech support, I love the site You Need a Budget and the app Digit, which automates saving. For investing, look at Stash and Robinhood - you can start with $5! I use a financial adviser for bigger investing goals, but I love the power of growing my money in my own hands too.
13) Week 4: Maintain Your Momentum
The last week of this money reset should be about moving forward. You've done the work, and I hope you are more confident in your ability to achieve your goals. But things happen, so if you have concerns about falling off track, here's how to keep yourself from getting sidelined.
14) Week 4: Choose a Timeline
Now that you know what you want to do and how you'll do it, let's determine when you want to complete it. I suggest creating smaller goals (brainstorm with your partner) that will help you achieve your larger one. The goal will be less overwhelming - and you can celebrate more often!
15) Week 4: Make Conscious Decisions
Be mindful by asking yourself things like, Do I need this? Would my life be significantly affected if I didn't buy it? And nearly anything you do can be looked at through this lens: How does this affect my financial goal?
16) Week 4: Adopt a money mantra.
Keep these in rotation for when you need positivity:
I am wise with my money.
I allow good things to come into my life with ease.
I am open to all the wealth life has to offer me.
This four-week plan will help you finally get your finances in order.