A person sitting at a table with a laptop and a stack of papers. He is working on some financial calculations, using a spreadsheet program on his computer and a calculator on his desk. On the corner of the table, there is a piggy bank. It looks like he is saving money for something. He is focused and attentive to his task.

ACHIEVING FINANCIAL EMPOWERMENT: 4 TIPS TO GET OUT OF DEBT

Friday, March 25, 2022

Thirty-eight percent of Canadians say money is the number one source of stress in their lives and debt is a debilitating financial topic over which people feel they have little control. Many individuals struggling with debt say it affects their physical and emotional quality of life. If this resonates with you, this guide is here to help you take back control.

Understand Your Financial History

In order to achieve empowered thinking, it’s important to understand your financial history and how it shapes your idea about money and financial responsibility. For example, someone who was raised in a family where money wasn’t an issue may have a different perspective than someone whose family struggled to make ends meet. Understanding how one’s experience influences the way they spend money, make financial decisions, and their ability to reach financial goals is critical to their success in the future.

Pursue Financial Education

Personal finance is not commonly taught in schools, so much of what we learn about money comes from our parents and our own pursuit of knowledge. That means in order to learn more about basic financial topics such as budgeting, saving, debt and investing, we must seek out this information. Learning these important life skills will strengthen your financial literacy and allow you to make better informed decisions when it comes to managing your debt. If you have further questions, our team is here to help! — Let’s Connect for more information.

Change Your Mindset

Your money mindset influences how you save, how you spend and how you manage debt.

When you have limiting beliefs, they become thoughts, and these thoughts turn into actions that reinforce those limiting beliefs. If you believe you’re not good with money, you may spend carelessly and doubt your ability to save or pay off debt. Achieving a positive money mindset starts with giving up the limiting beliefs you have about money.

Be Intentional with Your Money

In order to see the light at the end of the tunnel when it comes to overcoming debt, it’s important to be intentional with your money. This means being deliberate about what you spend your money on, where you spend it and how you feel when making financial decisions. Being intentional encourages you to stick to a plan in order to reach success in the future. Here are three easy ways to be intentional with your money:

Track Your Money

Tracking your income and expenses allows you to develop a clearer picture of where your money is going. This will help indicate what you can afford and any areas where you can cut back. Building self-awareness over what you spend money on will give you new insight and perspective on your finances.

Set SMART Financial Goals

Turn your vision into reality by setting SMART financial goals – Specific, Measurable, Achievable, Realistic, Timely. Goals that follow this criteria are more attainable because they outline what you want to achieve, how and when you will do it. Download YNCU’s free Financial Goals Worksheet to start setting goals today.

Create a Budget to Stay Intentional

Spending money without a budget is like trying to get somewhere without knowing where you’re going. A budget provides you with the information you need to better manage your money. YNCU’s household budget tracker is a great resource to help you be more intentional with your spending.

Achieving financial empowerment over your debt takes time and commitment. But once you get there, you’ll be able to reach your goals with ease and make better financial decisions. Ready to get started? Check out our blog, to learn more about “How to Build a Better Budget.”