Could your finances be in better shape? You bet they could. If you’re like most people these days, money concerns rank highly on your list of daily worries. Families struggle to pay the mortgage and sometimes wonder how to pay for other expenses, too.
The psychology of money fitness
According to something called the Transtheoretical Model, change comprises five major milestones, explains Rutgers University. The first step toward financial fitness or any sort of change is the pre-contemplation stage. At this point, a person may not even know they that have a money problem. Soon thereafter, they begin to contemplate their financial plight. At this stage in the process, knowledge and new understanding is gained and alternative behaviors are learned. After this comes the preparation stage, during which a person adamantly chooses to enact a viable plan to make financial changes. The preparation stage is when commitments are made.
After the preparation stage comes the action stage where behaviors start to change. Once a behavior such as overspending or not paying bills on time is changed for the better, a maintenance stage may be in place for the rest of one’s life.
Change your thinking, change your brain
The brain is a remarkably plastic thing, able to change according to the way it’s used to think and imagine. By repeating aloud positive affirmations throughout the day, one can ‘rewire’ the brain to enact what is being said, whether or not the speaker initially believes it. Sounds wacky? It’s not. It’s actual brain science. Think of an affirmation as burning a CD in your mind. Daily repetition (10 times a day is good) imprints your words right into your brain. Replace negative thought patterns with positive imagery, and you can get financially fit.
Other strategies that work toward fit finances
Bank of America has a slightly different take on financial fitness and how best to achieve it. First, determine your net worth by comparing the assets you own to the debt you owe. Assets are things such as cash on hand, money in the bank, savings bonds, stocks, real estate and your car. Collectibles of a certain value may also be added to your roster of assets. Credit card balances, student loans, outstanding car loans and payable bills count as debts. Add your assets, subtract the amount of debt and you’ll get a good general idea of your current financial standing.
Check your credit reports to ensure accuracy. You might be amazed at the number of wrong things included in credit reports. Correcting them may take some effort, but it’s definitely worth doing. If your credit scores are less than stellar, take steps toward paying down your debts and freeing yourself financially. A debt consolidation service may be of great benefit, as far as correcting your financial fitness is concerned. Visit this site to learn more about debt consolidation.
Anyone can improve their financial fitness if they put their mind to it. The same steps used to enact change in the lives of persons with other issues may be applied to those who wish to change their financial lives for the better.
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