How To Live Wise With Money

Photo culled from newsghana.com.gh

Taking the first steps
Imagine a life where you control your money instead of your money controlling you. Don’t believe your money is in control? Do you find yourself wrestling with credit card debt you can’t pay off, or a car you can’t afford, or a house worth less than you owe on it? Do you find the “happiness” of buying something online becoming more and more of a habit? Here are some steps you can take to start considering how to have a healthier relationship with money and find a more openhearted way of living:

1. Evaluate
First, take a look at your current relationship with money. You can use an online assessment tool like the New Money Mindset Assessment tool . You’ll get four scores; each score measures one aspect of your relationship with money. Or simply take some time to look at your habits and think about the role of money in your life.

2. Give
Next, try adding more “good stuff” to your life. By that I don’t mean another round of spending! I’m talking about leading with generosity grounded in grace. Instead of putting all your energy into cutting, focus on giving. If you’re stingy, like I am, try tipping a little extra for services, or buying the nicer present that you normally wouldn’t. And it doesn’t have to be financial. Send a thank you email to one person each day, every day for a week; pay someone an unexpected compliment; spend more time listening to someone. Or sign up for a volunteer shift . When you choose to live generously, you break your own persistent desire for more.

3. Shrink the Change
Another approach is what the Heath brothers (Chip and Dan Heath, Switch: How to Change Things When Change Is Hard ) call “Shrink the Change.” Take housecleaning, for example. If you tell yourself you have to clean the whole house, the Heath brothers suggest you might never get started. But if you clean for ten minutes and then stop, they would say that’s a success, just to get started. Try applying that concept to money. If saving 10% more each month feels out of reach, start with one percent more than you save right now. Aim to increase by one-percent every three to six months until you reach your goal. By making the goal easily attainable, you can get yourself started.