Small Habits, Big Impact
Banks, services, YouTube videos, there is a rather endless list it seems of financial advice out there about how to manage your money. So why do we struggle to actually do it? A concept called menu freeze exists. I suffer it a lot if I go to a restaurant that has a 10-page menu. There are so many options that it becomes difficult to know where to start, I begin to feel overwhelmed, and then I end up doing one of two things. 1) I will go with something I know, or 2) I will ask the server what they think.
Why ask the server? Because I’m trusting them. I figure, they probably have a good idea of what is liked on the menu and I really hope they won’t steer me wrong. That would be the worst — if the server thought just that day they’d suggest the worst thing they could imagine.
That is how we get with our money and our options. There are so many out there, that in many cases we freeze. Where do we start? What do we focus on first? The problem is, that there is no server at the table ready to offer us some advice.
That’s where we come in.
Why It’s So Hard to Get Started
There is consistent data from surveys all around that point to a common thread. The American Psychological Association found that 72% of adults felt stressed about money at least some of the time. The TIAA Institute surveyed and 42% of US Adults say money negatively impacts their financial health. The Motley Fool revealed that 54% of respondents feel stressed or anxious about their personal finances at least three days a week. All of this points to the same thing.
Money is stressful. So why would we want to get started working on something that is inherently stressful to so many of us?
Most people’s financial situations and stress are not the result of a singular event, but rather a series of small steps that are taken over a long period of time. Yet, when we look for a solution, we’re trying to find that one big magic bullet that will solve things. The truth is, that the solution is the same as the problem. Small, steady steps that build new patterns and habits.
Actionable Step: The 7-Day Spending Challenge
Take one week — just seven days — and track every single expense. It doesn’t have to be perfect, and you don’t need fancy tools to do this. Use whatever works for you: a notebook with a pen, a phone notes app, or any number of free budget apps that are out there. Count up and track everything, then at the end of the week organize your spending into three categories:
Needs: Essentials like housing, utilities, and groceries.
Wants: Non-essentials like dining out, streaming services, or hobbies
Debt Payments: Money paid to various debts.
Here’s the kicker: people who track their spending are able to identify areas where adjustments can be made, potentially reducing financial stress.
Building Momentum Through Small Changes
Implementing this week-long tracking exercise can provide valuable insights into your spending habits. Recognizing patterns empowers you to make informed decisions, leading to gradual yet impactful improvements in your financial health. These first steps start you down the path to gain clarity on what is going on and get you moving towards financial stability and security.
Remember, the journey to financial well-being begins with small, deliberate steps. Action today sets the foundation.
The most important thing we want you to know, is you do not have to take this journey alone. We want to walk alongside you in this journey and be the server to help you navigate the menu of choices. Please do not hesitate to reach out to us on our website for a conversation. There are no obligations and no expectations, we just want to be there if you have any questions that we can help with.
