how to practice financial optimism under all circumstances (3/3)

Assign a destination to every dollar that you earn: Writing a monthly budget plan before the start of every month is one of the best decisions we all can make to start transforming our finances. When we budget our dollars, we assign a specific destination to each of them. We prepare a blueprint for our expected expenses in the coming month. As we start budgeting, we dial in back to our priorities and spend only on the essentials. We start realizing what categories we need to cut off money from so that we can divert our funds for better use. As an outcome, we naturally become better at managing our finances. John Maxwell once said, “A budget is telling your money where to go instead of wondering where it went.” With budgeting, we empower ourselves to lead our money effectively and become a master of it, thus enhancing our self-confidence and fueling hope and positivity within us. (If you’re new to budgeting, I recommend using the EveryDollar app by Ramsey Solutions to manage your finances.)

Practice simplicity: When we embrace simple living and live consciously with less, we also tend to spend less money. In addition, whenever we buy, we do it intentionally having put a lot of thought behind our purchase. We build rules around our spending so that we spend only on our needs and not on luxuries and non-essential items that don’t align with our way of life. We set boundaries to keep ourselves in check. We buy because we need something and see it having a purpose and meaning in our lives, not because it is cheap or for sale. As a benefit of minimalist living, we are able to save money that we can direct towards things that fulfill us such as traveling or cultivating our passion. Also, we are able to direct money towards building investments and assets that can help us build a better and richer future for ourselves, thus ensuring we remain optimistic about it.

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