Have you set out to achieve a certain financial outcome in the past? Maybe every New Year you decide to solve and overcome the same financial problem and set the same resolution for your money. Pay off debt? Save money to have a cushion in case of emergency? Vow to pay for Christmas in cash this year? Maybe you’re just wanting to no longer live paycheck to paycheck?
Have you achieved that outcome? Or are you stuck, feeling like a hamster in a wheel that is continuously running, but never getting anywhere? Those financial targets you have been hoping to achieve just never seem to happen.
Managing our money works the same way as managing anything else in our lives. What we put into it is what we get out, and we have to deal with the problems along the way. Here are six problems you may run into when attempting to manage your finances, and what to do to overcome them!
1) Lack of focus
We try to do everything our lives demand of us, and what actually happens is very little gets done successfully. We spread ourselves too thin because we try to make everything in life of the same importance.
For example, if we want a clean house, someone has to clean it. So the first task would be to decide to actually clean. But we can’t clean every room at the same time and we can’t do our other household tasks while we’re cleaning. It would be silly to try to do the laundry (that seems to multiply exponentially in our house!) while we clean the bathroom. We finish up one thing, then move on to the other. We have to focus on one at a time, or nothing will get accomplished.
The Solution for a lack of focus on your finances
The bottom line is that we have to make our finances a priority, or we will never achieve the outcomes we want.
We also need to focus on one area of our finances at a time. So if you are trying to pay off debt, pay extra on your debts. Don’t try to save much money on top of that. Unless you have an unusually large income:expense ratio, you won’t make much progress.
Once your debt is paid off, then you have the ability to start saving a much larger amount toward your next goal than if you were still paying off debt.
One thing that can help with focus is to always keep in mind your “why.” Why do you want this? What is your motivation for wanting to make change with your money?
The underlying reason WHY you want to achieve something financially is what will propel you forward in achieving it. Is it so you don’t lay awake at night worried about financial concerns? Is it so your kids don’t have to hear you and your spouse fight about money? Is it so you can be free to give to others without putting your family at risk?
How would you complete this sentence? I want to _________ (achieve this with my finances)_______ so that _________(it makes such-and-such possible)________.
Here’s mine: I want to become debt-free (even from my mortgage), so that my husband and I are free to do work we love, give generously, and have more intentional family time on our own schedule.
Once you have your “why” statement, decide when you have the margin in time to work on this. Remember your “why” and make it a priority to spend focused time gaining control of your finances.
Carve out a few minutes in your day to focus only on this priority, even if it is just 15 minutes here and there throughout your week.
Plan ahead for that time and guard it. Make a commitment to yourself that you will keep that time sacred to focus on your money, and just begin! Set a timer for the 15 minutes if you have to. That gives you a solid start and stop time. If you don’t finish the task, make a commitment to do another 15 minutes soon!
2) Lack of organization
Most of the time, we honestly don’t know what’s going on with our money. Our now primarily cashless society makes it so easy to swipe a card, even to overdraft our account, and move on to the next thing in life. We may even forget to pay some bills because most statements are now paperless and easy to miss in our overflowing email inboxes!
I recently went over our money in detail, and was very surprised to find out how much we were overspending in certain categories each month. I knew we had been over, and was adjusting other budget areas for that, but I honestly didn’t realize how MUCH over until I added up everything!
Keep in mind I have been budgeting for years. That shouldn’t have happened! So, if you’re not very organized with knowing where your money is going each month, know that you’re not the only one!
We all need reminders and help to get to where we need and want to be. Also, let this be a reminder to sit down and look over all your money details, even if you think you already know exactly what’s going on with your money.
The Solution to Disorganization with money
During the focused time you created above specifically for your finances, you must get organized. Organizing all of your financial numbers in one place is a great place to start. This includes writing down everything you owe and own, how much you owe, as well as how much what you own is worth. You need to be clear on your payments and expenses each month, as well as the income you are bringing in. If you’re pretty unsure as to where to start with this, check out this post to organize everything in one place and figure out your net worth.
3) No action plan
When we’re unorganized, we also don’t have a good plan of action for where our money is and should be going. This leads to a lot of “money leaks” and “money waster
Working off of a written plan each month (or budgeting) allows us to be wise stewards of what God has given us. Where is our money going each month? Is it working for us? Or against us? The ultimate goal is for it to be working FOR YOU! Which is exactly what a budget will do for you!
The Solution to creating an action plan for your money
Create a budget on paper, on purpose every. single.month. This will be THE MOST IMPORTANT way for you to manage your money wisely, allow you to keep organized and even focused on your ultimate financial outcomes! This post will guide you in creating your written budget, but if you prefer a digital app/website instead, check out Dave Ramsey’s app/website Every Dollar.
4) Unhealthy financial relationships with others
This is a very broad topic, so take some time to think about how you and those closest to you relate to your money.
It could be that you and your spouse are not on the same page. Usually one is a spender and one is a saver, and when you aren’t able to effectively communicate with each other and compromise, this can cause some bigger issues. Unity in this area is so important in a marriage. If this is an area where you’re struggling, this can help you work together with your spouse regarding your finances.
In addition, many other unhealthy relationships can drag you down when it comes to your finances. It could be from unrealistic expectations from others in your life, including close family members, or even your kids. Your upbringing and the way your parents handled their money can play a big role.
The Solution for unhealthy financial relationships
Consider your relationships with others and if any of your money decisions are affected by that. If you are supporting others financially in anyway, really think about that relationship and decide if you are actually helping them or possibly even hurting them by how you are handling the situation.
Also dig into your past. How did your parents handle money, and how did you learn to handle money? Is that mindset you have from the past currently serving you and your family well—or is a past relationship hindering your progress financially? Be intentional to change any mindset issues, as well as make decisions and take action steps to set boundaries around any unhealthy relationships.
5) Psychological triggers that cause overspending
Buying things to make ourselves feel better or to make someone love us more can be things we struggle with. Purchasing things that we don’t really need— maybe because there’s a huge sale and we just can’t pass up a good deal—can be a financial hindrance as well.
It’s very important to be aware if you are an impulse buyer and the areas in which this is more of a temptation for you.
The Solution for triggers that cause overspending
Think about how you were feeling and what life circumstances you were dealing with when you know you’ve overspent in the past. Are you trying to prove something to someone or even yourself? Are you trying to “keep up with the Joneses”? Are you going through a difficult circumstance and engaging in retail therapy? 
The above scenarios are understandable if you’re wired to think this way. Work on identifying those certain triggers that cause you to spend when you know you don’t really need something.
Plan ahead for the next time you feel that way or are dealing with something that triggers your spending unnecessarily. Decide ahead of time another activity you can do that won’t cause you to spend money. The faster you can replace that bad habit with a good habit, the faster you will gain control of this money problem, and the more progress you will make toward your desired financial outcomes!
6) Feeling defeated or even shameful regarding your past and/or present money management
So many have regret and ill feelings about how they have handled money in the past. Some of that may be carried over into the present, and you may feel like there’s no way you’ll ever gain control of your money. You may be constantly reminded with feelings of guilt and defeat, thinking there’s no hope for your situation.
The Solution to Overcoming Shame, Guilt, or Defeat regarding your money
Take hold of the fact that where you were and even where you are now is NOT where you have to stay! Know that you have the ability to make different choices NOW, to choose TODAY to start, and to completely turn your financial situation around.
Unfortunately, gaining control of your money is not a one-time event. It will be a process, and it will take time and work on your part.
But I KNOW you’re ready to put the past behind you and create a new present. Because you wouldn’t be reading this if you weren’t! Dig in. Know that many before you have started right where you are (or most likely in a worse situation), have worked through their shame, guilt, or defeat, and they have come out successfully on the other side! It WILL take time, but it will be oh. so. worth. it!
Decide that NOW is the time to overcome your financial problems and go for it!
There is so much hope for you, for your future, than you could ever imagine! You just have to believe in that hope, and believe that God has much more for you than what you can see right now. Once you begin to manage your money in a way that glorifies Him, you will be amazed at the blessings He bestows.
No matter which financial problem you need to overcome the most, you can begin working toward a solution! Whether it’s a lack of focus, organization, or plan of action for your money, you can get started TODAY! Also consider any unhealthy relationships, psychological triggers, or negative feelings that may be adding to your financial problems. Being aware of those ahead of time can allow you to make course corrections and prevent a larger problem in the future.
Let’s go back to the clean house and laundry analogy from the beginning. Just as we can relax better and enjoy a clean house, versus a messy, disorganized one, cleaning up our financial problems now will provide much more peace later. I challenge you to deal with them now and to reach out if you need help working through something!
As always, steward your money — and your life — intentionally.
Heather
P.S. As you’re getting more focused, organized, and working on your financial plan of action, a fun Bill Tracker can help keep you in control! Sign up here to grab it!
Email me at pennystewardmama@gmail.com with any questions and to learn more about scheduling a one-on-one financial coaching session with me. Also, join us on Facebook here!
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