Money is only a tool. It will take you wherever you wish, but it will not replace you as the driver. ~Ayn Rand.
Winning with money requires a mindset shift — a change in focus, attitude, and perspective. Often, it’s more about the why than the what and more about the goal than the process. It’s also more than baby steps. It’s about your behavior.
Everyone knows they need an emergency fund, but most people don’t have one. Everyone knows they don’t need to use a credit card, but credit card debt is at an all-time high.
Our perspective about money is mainly due to our upbringing, surroundings, or circumstances. We don’t — or can’t — see it any other way, and we choose to believe it will always be the same. In other words, we’re stuck going around the same mountain repeatedly.
Indeed, we live in challenging times. And if you want peace of mind, you can have it.
America’s debt is out of control (Check out THIS), and so is consumer debt. (Check out these STATS.) What can you do? What should you do? Ask yourself this question: What is my wisest next step? Not the next two or three steps. The wisest next step?
Take care of yourself and your family first. The mindset shift is a continuous journey, so fresh eyes are always good, whether you have no debt, are headed to retirement, or are just getting started.
But don’t stand pat. Do that financial check-up just like you’d do the physical or annual job review. Don’t say, “Everything is a-okay” or “We’ll make it.” or “It’s going to work out.” All of us can find somewhere to tweak, adjust, cut, or fine-tune.
People ask me almost every day, “What can we do?” After working closely with dozens of couples, singles, and businesses in 2023, here are some of my responses.
EVALUATE YOUR SITUATION. Review your budget, debt, and spending. Prioritize your plans and establish boundaries. If you’re married, meet regularly (every week or bi-monthly works well) to stay focused. Be ruthless in your elimination of debt and spending. Don’t compare yourself with others. You’ll always find someone worse off and get discouraged by those you deem to be better off.
WHY: Life changes. Regular check-ups yield peace of mind. 
PLAN NOW. If you’re getting a tax refund, a bonus, a raise, or some other type of windfall, decide now what you will do with it. Don’t put it off until you get the check in hand because your emotions will take over, and it will be gone before you know it.
WHY: The PRE-DECISION can be the best decision you make. Decide today so you don’t have to decide tomorrow.
SAVE. Take advantage of a high-yield savings account while interest rates are unusually high. Check out these options: ALLY. WEALTHFRONT. Both have high-yield interest accounts (e.g., savings, CDs, money markets).
WHY: It’s wise to take advantage of every avenue to earn money. This keeps your money within reach but yields dividends.
SINKING FUNDS. Christmas, birthdays, vacations, summer camps, and anniversaries aren’t emergencies. They should be on your radar, though, and you can start now to put money aside. What would happen if you could put away $50 each month for Christmas? You’d have $600 come December 25 (plus some interest), and you won’t be scrambling as much. Try $100/month or $150.
WHY: Sinking funds remove stress down the road. Turn bite-size chunks into lump sums.
EMERGENCY FUND. Yeah, I know you’ve heard this again and again, but it is such a critical first step. It’s not only essential, it’s imperative. Do you have one set up? How much is in it? Do you use it? If not, why not? It works for the ants. Check out THIS for the basics.
WHY: It’s a safety net that keeps you from falling back into bad habits, credit, and more debt.
REVIEW YOUR SUBSCRIPTIONS. Everyone has subscriptions: Hulu. Apple Music. Spotify. AAA. Amazon. StitchFix. Netflix. Chewy. WalMart. Just like your insurance, do a quick review.
WHY: If you’re like most, you have at least one you aren’t using or don’t need anymore but pay for — and that can add up.
PAY TWICE A MONTH. You can do it with your car, mortgage, and certainly with your credit cards. If you get paid more than once a month, schedule to make a payment twice each month.
WHY: You’ll pay off the debt sooner and save interest, especially on your credit cards, which are likely in the 25-27% (or higher) range now.
THINK AGAIN. Whether it’s a major purchase (e.g., vacation, car, appliance, etc.), ask yourself if now is the right time. Can you pay in cash? Can it wait? Take a look at interest rates, and it will give you pause.
WHY: Taking a second look isn’t bad and doesn’t mean you’ll change your mind. Instead, it may increase your resolve and purpose.
DON’T PANIC. The sky isn’t falling, but the trends and the signs are shaky at best.
WHY: You can spot trends and potholes ahead, but a stable mind will build confidence and certainty in your life.
You may be one decision away from your money breakthrough. The breakthrough is the decision to change, to do something different. The result — getting out of debt, living on a cash basis, or having that peace of mind — is a by-product of the breakthrough.
Now, can you find one thing on our list to do a check-up on today? Change your mindset: Focus on one thing first, shore it up, and build your peace of mind.
~ Swedish Proverb.