5 Money-Saving Steps To Stop Emotions & Get The Best Out Of Your Money

5 Money-Saving Steps To Stop Emotions & Get The Best Out Of Your Money

Are you making nonthreatening or detrimental decisions with your money when you are emotional? Going for some retail therapy when you get bad (or good) news? Being impulsive and uninformed about your decision to spend? If so, are you allowing your emotions to keep you stuck in your financial journey to abundance?

How do you take your emotions out of your financial behavior? Honestly, I don’t think we can. However, I do know that we can mediate our experiences so that we don’t consistently make decisions that are detrimental to our financial health because we are being emotional. Follow me?

Even in good times, when we receive good news or are in a celebratory state, we can make detrimental decisions about our money. Crazy right?! Shouldn’t it just be all good? I wish!

So, here is what I have learned as I worked with more and more clients and tuned into my own behavior: there are five steps to mediate our emotions about our money. I share key learnings, strategies and resources like this all the time with our community of money masters and wealth builders. Don’t miss it, join us!

Essentially, this is a way to take the emotion out of our money decision-making process :

  1. Identify the emotion that induces you to make a financial transaction
    1. Happy
    2. Sad
    3. Worried/stressed
  2. Identify the action that you took in response to that emotion
    1. Retail therapy
    2. Paid bills
    3. Loan some money out
  3. Is this an action you’d like to start, stop or continue when you feel this emotion?
    1. Stop shopping when I get happy
    2. Continue to budget once a month
    3. Start saving regularly
  4. What is your current mindset about money? Is it limiting or motivating?
    1. I don’t monitor my money the way I should but oh well, I’ll start when I make more
    2. I save every month, but I’d like to save more
    3. I like to help my family and friends, I’ll give my last to them
  5. What one action can you take to start, stop or continue this action?
    1. Pledge not to make any unplanned purchases for one week
    2. Invite a close like-minded friend to budget when I budget
    3. Determine how much I will save and transfer that amount to my savings account

So the steps are laid out, 1-5, with a-c as examples of each step. Take a minute to re-read the steps above and then print out this article and fill in the exercise below, using your own situation. I want you to put this into practice. Don’t just read it and say that sounds good. Try it. Test it. Challenge yourself. You know there is some improvement you can make regarding your emotions and your money, right?

  1. Identify the emotion that induces you to make a financial transaction
  1. Identify the action that you took in response to that emotion
  1. Is this an action you’d like to start, stop or continue when you feel this emotion?
  1. What is your current mindset about money? Is it limiting or motivating?
  1. What one action can you take to start, stop or continue this action?

Now, what? Do what you said you’d do. Take that one action and make it happen. Your financial success (or failure) is simply made up of a series of decisions that you make or fail to make.

Like what you read? Get more of it, join our community of money masters and wealth builders. I’d love to have you in our community, we are on our way to money mastery. Will you join us?

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Dr. Dominique' N. Reese
Dr. Dominique’ Reese, owner of Reese Financial Services and creator of Master My Money, is a personal finance expert, coach & strategist, speaker, educator, author, blogger, and consultant with 10+ years experience in the financial services industry.