The significance of having a positive relationship with money is often overlooked. That’s why financial motivation has been the subject of books and lectures around the world.
But what this concept actually means? How it can help you in your everyday life? Well, that’s exactly what we’re going to find out!
A healthy relationship with money can lead to better financial decision-making, less stress, and more financial stability.
What is financial motivation?
For those unfamiliar with the concept, financial motivation means focusing your personal and professional development on your financial health.
In other words, it means being committed to your budget, having control over expenses, making plans that involve your money, and staying determined to meet those goals.
In the same way that emotional motivation in the corporate environment can lead employees to achieve better results, financial motivation also drives human beings to pursue their goals, based on a healthier relationship with their money.
Imagine someone who dreams to start their own business but lacks the necessary funds to do so. With financial motivation, that person will work hard to achieve this goal, whether it’s by saving money, finding investors, or seeking out a loan.
And the same goes for personal goals like planning a trip, negotiating your debts, or securing a peaceful retirement. Everything is easier when you are focused on your priorities.
What is the importance of financial motivation?
Having motivation and focus is very important.
Motivation is always an essential component in achieving goals and objectives, whatever they may be. It is a key for individuals to take charge of their financial lives and make them better.
Being focused and motivated can help you set and achieve financial goals, improve decision-making, reduce stress, promote financial literacy, and improve overall well-being.
Nine benefits of financial motivation
Being motivated is always a good thing. Be it wanting to lose weight, quit smoking, drink, or eat healthier, all that requires that “spark” to ignite your journey to success.
Wanting to be financially successful is no different.
Here are nine benefits that changing your relationship with money can bring to your life:
- Improved quality of life
- More motivation to achieve your goals
- Clearer thinking and decision making
- A deeper understanding of yourself
- A more organized and planned life
- Better control of your finances
- Better preparedness for unexpected events
- Willingness to face challenges
How to motivate yourself financially?
The most difficult thing when it comes to implementing important changes in our lives can be just getting started. So if you don’t know how to motivate yourself financially, here are some tips that can help you transform that into reality.
Eliminate old habits
Most of us have one or two nasty habits! And that’s just the way we are. However, giving in to a bad habit and not fighting it can only bring negative consequences in the long run.
The longer we do things that go against our goals, the harder it will be to stop doing them.
Think of someone who often makes impulse purchases or doesn’t keep track of their spending. It will be hard for them to improve their relationship with money if they continue this behavior.
Put It All On Paper
After you have firmly decided to eliminate bad habits, the next step is to put your financial situation on paper so that you have a better idea of how much money and room for maneuvering you really have.
Make a complete spreadsheet, with all your income, basic fixed costs, and other possible expenses.
This will give you a clear picture of your monthly income and help you determine how much money you have available to invest in your goals.
You don’t need to be an Excel expert or a mathematical genius to do this. Luckily, there are several tools that can help you make this report.
As part of creating a budget, it’s important to set priorities for how you spend your money.
This can be done by gaining a deeper understanding of yourself and your needs. This process of self-discovery, known as self-knowledge, helps you better understand your own thoughts and emotions, which in turn can help you make more informed and thoughtful financial decisions.
Therefore, this skill helps you improve control expenses, spend less, save right and make investments according to your goals.
Plan your future
Planning for your financial future involves setting long-term financial goals and creating a plan to achieve them.
Setting specific and achievable financial goals could be crucial for things like saving for retirement, paying off debt, buying a house, or saving for your children’s education.
Take your time to develop a plan that works for you and your unique financial situation.