Our Money Mindset quiz helped you to identify your financial habits and philosophies. It's important to take some time to reflect on your current financial behaviors. Are there any habits that are helpful for your overall financial well-being? Are there any that are unhelpful? Is there room for improvement or change?
At the end of the day, Julep is a judgment-free zone and we promise there is no "good" or "bad" mindset, but each is certainly unique. No matter what your mindset is, we're here to help you tap into your strengths, overcome your weaknesses, and empower you to build a financially healthy lifestyle.
Now, we want to give you some tailored advice based on your mindset.
Out of sight, out of mind
This is a fairly common mindset that may come with some anxiety around finances. This can result in avoiding thinking about money altogether.
How to take action: If this sounds like you, a great first step is to start consistently checking on your finances. Whether it’s a good day or a bad day, just becoming aware of your financial situation is part of achieving financial wellness. You can also take another step and set up automatic bill payments or transfers to a savings account. That way, you can have some peace of mind knowing your finances are on track.
A penny saved is a penny earned
Someone with this mindset believes that being frugal and saving is critical. They may be secretive about their finances and feel uncomfortable discussing money with others.
How to take action: If you have a hard time letting go of your money, it’s important to remember that some things are worth spending money on—whether it’s putting extra money toward your debt or just treating yourself every once in a while.
How badly you want something dictates how hard you’ll work at it
Though someone with this mindset works hard for their money, they may feel like they never have enough. They may even overwork themselves. This type of mindset may lead to overspending and carrying credit card debt.
How to take action: Take control of your spending by creating a budget and learning how to efficiently pay off your debt. A great habit to develop is to “pay yourself first.” By that we mean when your paycheck comes in, try to put money directly into a savings account. That way you’ll set yourself up for future success.
Net worth = self-worth
People with this mindset may see money as a status symbol. While they are hardworking, they may take more risks with their money or overspend on material purchases.
How to take action: If this sounds like you, there are several ways for you to curb your spending. If you’re using a credit card, pay attention to what you can and cannot actually afford—a.k.a.: do you have enough money in your checking account to cover the purchase? Another method is to give yourself a cooling-off period before making a big purchase—before clicking “checkout,” give yourself about 3 days.
As we mentioned, there is no "good" or "bad" mindset. No matter what your mindset, it's important to be aware of it and find financial habits that work best for YOU.
What will you start working on today for your financial wellness? Share with us! Send us an email at email@example.com and let us know what steps you will take today to work toward your financial wellness!
Have a great week.
Your Friends @ Julep