Do you like making New Year’s Resolutions? Or do they leave you frustrated and confused?
While I love the idea of starting fresh and having a focused mindset for the new year, I don’t want to just list off a bunch of things that will probably not happen, if I’m being honest.
So while there are many things in life that I would like to get better at doing, I want to make my primary goal for 2022 getting my finances on track.
Last semester, I did a student teaching internship, which required full time work but offered no pay. So in a way, I’m not really where I’d like to be financially because of that. And to be fully honest, over the last three years, I had a pretty major spending addiction. Not the going in debt kind, but the spending almost everything I earned kind. And boy, do I regret that!
To be fair, a decent amount of my savings went into car repairs, summer classes, and exam costs for my teaching degree, so it wasn’t all spent foolishly. However, I know that I can do better with my finances in the future.
So my main financial goal for the year is simple. If I don’t have the money in cash, I can’t spend it on wants. For needs like bills, dog supplies, gasoline, etc. I can use my credit and debit cards, but for things I just simply want, I can’t justify a purchase unless I have enough cash to cover it.
Why cash? Studies have shown that there is more thought and emotional attachment when handing someone physical money for a product instead of just mindlessly swiping a card. With the credit card, I don’t often think about how much the purchase cost, and can tend to spend way more than expected. Whereas with cash, I can instantly see the money being spent.
Some people do a year-long No Buy Challenge and I greatly respect that. I just know for me, that is a little bit unrealistic. One time I tried to do that to an extent while in the middle of my shopping addiction and it led to major impulsive purchases. So rather than aiming for an extreme, I just want moderation. It’s okay to indulge in a few wants here and there, but the purchases need to be thoughtful and justifiable with the cash I have on hand.
My other goal is to build up my savings account again. In the very near future, I will need to start paying back student loans. I want to ensure that I am not spending my entire income, but am saving some aside for emergencies and future payments.
So we’ll see how this challenge goes. If you are trying something similar, feel free to let me know how you’re doing and we can encourage each other along the way!
Thanks for reading,
RaeAnn
Live So Fully 