5 Signs Of Financial Growth That You Don’t Give Yourself Enough Credit For, According To A Money Coach
You should be going easy on yourself if you're making an effort to change your financial habits.
Kaboompics.com | Pexels Navigating an economy where the cost of living is exponentially high and people aren't making enough money at their jobs to cover their basic expenses, the reality of being financially free is unattainable for a vast majority of individuals. Even money-saving hacks like budgeting and saving haven't been able to pull people out of the financial hole they've been forced into.
However, it doesn't mean that people aren't trying, and they should be giving themselves a little bit more credit, at least according to a money mindset coach named Vee, who shared five signs of financial growth that are sometimes brushed under the rug.
Here are five signs of financial growth that you don't give yourself credit for:
1. You're more consistent with tracking your spending
According to a survey from NerdWallet, 84% of Americans admit that they've sometimes exceeded their budget. The survey also found that among the 2,000 American adults polled, 74% have a monthly budget, so that's actually what Vee was talking about. You're doing well if you actually have a budget and can recognize when you are overspending.
"It doesn't have to be perfect, but if you have a general idea of how much money you spend on say, eating out over the past month, week, or even today, you're doing a lot better than many people," Vee said. "Some people never track their spending so they have no idea if they're under spending or over spending."
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A survey conducted by personal finance site The Penny Hoarder found that a little over 55% of Americans do not use a budget to track their income and 56% of survey respondents claimed they didn't know how much money they spent in a month. So, truthfully if you're managing to track your spending in a succinct way, you're doing quite well.
2. You hesitate before making an impulse purchase
"You may not realize this, but that single act has and will continue to save you a lot of money every single month," Vee insisted. "And again, it doesn't have to be perfect and sometimes you might give into the impulse but the fact that you were able to resist some is gonna benefit you in the long run."
Honestly, it can be hard to avoid an impulse purchase, especially if you've just had a bad day and the only thing that you think will make you feel better is buying that expensive bag that's been sitting in your wishlist for the last six months. So, if you're someone that uses your head instead of buying things from emotion, you're doing better than most people.
Truthfully, it's best to wait a couple of weeks or even a couple of months when deciding to make a big purchase in the first place. That way it gives you time to figure out if you really need it or you're just being impulsive.
3. You started building an emergency fund
"No matter how small," Vee said. It really doesn't matter if it's simply $20 from each time you're paid at work or $100, any little bit helps to build up an emergency savings fund that you can turn to in any moment of turmoil. It's always good to have money stashed away because you truly never know what's going to happen in life, and it's better to be safe than sorry.
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According to a Bankrate poll, an estimated 33% of Americans have more credit card debt than emergency savings. Another 13% admitted that they don't have credit card debt but don't have an emergency savings either.
4. You're less stressed about money than you were a year ago.
"Notice I said 'less stressed,' Vee pointed out. "So even if everything hasn't completely fallen into place, the fact that you're not exactly where you were 12 months ago, or even six months ago says that you're making progress."
Be proud of any little achievement because it honestly means so much more than you may think. There's nothing worse than money stress, and so being in a position where you can breathe and not have to be as stressed as you previously were is definitely a step in the right direction.
5. You're thinking about your purchases long-term.
Vee explained that this is a good thing because then you're no longer yearning for that instant gratification that comes with making a purchase. Instead, you're consistently considering how buying anything, big or small, is going to impact you in the long run.
You're making smarter decisions about how purchases impact your financial goals, and that's always a step in the right direction.
Nia Tipton is a staff writer with a bachelor's degree in creative writing and journalism who covers news and lifestyle topics that focus on psychology, relationships, and the human experience.