Finding your financial “Why.”(part 3 in the financial series)

In life, almost everything that we do has a reason why. This is especially true when it comes to your finances. You view money and how you handle your finances because of several things you believe or have been taught, either directly or indirectly.

As you begin your financial journey, whether you’re trying to better your financial situation or are on the road to becoming debt free. The first thing you need to do is find your “Why.”

Yes, before you write a budget. However, you need to find three key why’s to your financial situation. They are as follows:

Why do you spend the way that you do?

Second, why are you in the financial crisis that you are in?

Third, why do you have the belief that you have about your finances or money in general?

You want to ask these questions because you need to understand how money works in your life and what caused you to be where you are financial.

Let’s look at the first question (shall we).

Why do you spend money the way you do? There can be a hundred reasons why you have your spending habits. It doesn’t matter whether your habits are good or bad. The purpose of the question is to know why you have them.

Examples of “why’s.”

You didn’t have a lot of money growing up

if this is a “why” for you, then there may be a few outcomes that you have chosen

  1. You spend less due to fear of not having enough money (or money running out).
  2. You spend a lot to make up for not being able to have the things you wanted
  3. You have good spending habits, so you don’t have to worry about history repeating itself.
  4. You save every penny you can so you can have money in case of an emergency.
  5. You save money on most things, but when it comes to your children, you go all out because you don’t want them to go without.

These are not all the answers to this question. They are just examples; however, when answering these questions, you must be as truthful as possible.

Now let’s look at the second question (Are you ready for this one).

Why are you in the financial crisis that you are in?

How did you get to where you are now, why are you here, what was the problem, how did you try to fix it, and why didn’t it work?

Knowing your starting point in a financial crisis is key to finding your way out, and it’s not as easy as “I don’t have enough money” there is a lot that goes into why you don’t have enough or make enough.

Examples:

You have transportation problems

You have childcare problems

You have mental health issues that make it hard for you at times

You feel overwhelmed

You think you are too good to do specific work

You have unrealistic expectations

A wise person once said, ” To have a better future, you must first understand the past.” So when starting your journey to a healthier financial life, you need to know and understand the behaviors and habits that got you where you are today.

And now to the last question (having fun yet?)

Why do you have the beliefs that you have about money and finances?

Most of us will find the answer to this question will come with a person’s name.

Many of our money views are due to our parents, family friends, or members, a book we read about financial habits, a workshop, or a class. For some of us, the answer is just someone we found had valuable information about money.

Your answer can also be due to your past and your emotions. How you felt about your financial situation as a child.

Examples:

Was finances management taught in your home or in school?

Was money or gifts a form of reward?

Did you have to work or do chores (as lessons about earning money)?

Does having nice things (or money) make you feel better?

Do you get depressed if you can’t buy something you want?

Your financial “why” is very important, and you owe it to yourself to find out what your “why” is. Yet I would start with my financial “why,” and once I found out what it is, I would find out what the other “why’s” are in my life.

“Why” is a question we ask ourselves almost every day about many different things in our life. Past, present. And future.

Finding your “why” will make your financial journey a lot easier.

Well, that’s all I have for today; I hope this helps you on your journey.

Thank you for reading Everything Frugal.

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