How To- Handle Money Mistakes

Do not beat yourself up if you “mess up”.

No matter how long you have been doing something, how much you have practiced, or how much support you have, chances are you will make mistakes from time to time.

This is life.

It does not matter whether you are talking about your career, finances, health, diet, spirituality, etc.

If you are doing something, you will make mistakes. In fact, it may be easier to make mistakes because you are not paying attention.

Hey, I proved this true a few weeks ago when I tripped walking up the stairs and had to have stitches. It is not like I have never walked up the stairs before!

So, why do we beat ourselves up when we spend more than we have budgeted? This is especially common around the holidays, when on vacation, or after major life events like home purchases, weddings, and new babies.

Berating yourself does absolutely no good. If anything, it could lead to an even bigger problem. After all, why bother if you have already ruined everything?

Instead of abusing yourself, next time determine what caused the problem and figure out a way to reduce or eliminate the chance of it happening again.

For example, if you forgot to make a monthly payment, figure out what was going on that caused you to miss the payment, then come up with a way to ensure payments are not missed going forward. It could be something as simple as setting up autopay, but it could be something more involved like a tickler in your calendar or a spreadsheet that helps you remember what is coming up.

I personally use a spreadsheet that is set up like a checkbook so I can easily see what has occurred in the past (it goes back almost 20 years), revenue and expenses coming in the future, and I even color code it so I know if I need to take action or if it is already set up to happen automatically. I can check off items that have cleared my bank account and use it to reconcile my spreadsheet to my bank account. I have shared it here before and it is included in the toolbox in the Money Mom Academy.

But, what works for you could be completely different. The important thing is that you find what works for you. If spreadsheets give you hives, what works for me will definitely not work for you.

If you are a small business owner you may need two different systems. A cash flow spreadsheet may be more helpful for your business to see what is coming in and going out, especially if you want to compare it to your budget or compare multiple scenarios.

You may want to stick to pencil and paper- or maybe a white board- where you can easily pivot from week to week or paycheck to paycheck.

Before you can decide on the solution, though, you first have to figure out the root cause of the problem.
If, after determining the root cause behind whatever you struggling with financially, you are not sure what the best solution might be, please email me and we can work through it together. No strings, no charge. I want to empower you to make managing your money simple and enjoyable.

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