If you’re dealing with debt, living paycheck-to-paycheck or just feeling overwhelmed about finances, it’s easy to assume you’re just “bad with money.” But when anxiety takes over, we end up making worse financial decisions. That’s why it’s important to acknowledge the things you’re doing right in order to improve your relationship with money.
These are some personal finance wins that show you’re doing better than you think.
- You have a budget - If you have one, you’re doing better with your finances than a lot of people. Of course, having a budget doesn’t mean you stick to it, but it’s the first step in being aware of your financial situation.
- You know exactly where your money is going - Knowing what your spending habits are can ease anxiety about them. If you’ve looked at your bank statements and have noticed areas where you can cut back on spending, you’re making progress.
- You know the status of your debt - It’s also crucial to know exactly how much money you owe. If you’ve overcome the fear of finding out the reality of your debt, you’re doing better than a lot of folks.
- You have an emergency fund - A good starter “rainy day” fund has enough for one month of rent plus your insurance deductible. If you’ve saved that much and don’t have to touch it to pay your monthly bills, you’ve taken another step in building a secure financial future for yourself. Keep adding to your emergency fund when you can until you get enough to cover you for six months or longer.
- Your relationship with money isn’t holding you back - If you’re losing sleep over money or constantly feel buyer’s remorse, something needs to change with your financial situation. When you feel confident that you’re not wasting money and are only spending on things you need or love, you’ll make better financial decisions for yourself. Stepping back to look at the big picture of your finances can help you recognize what you’re doing right so you can celebrate your wins and boost your confidence so you’ll keep making smart decisions with your money.