Someone once said, "Nobody has ever grown muscles doing the convenient, if it were that easy, everyone would have defined muscles", and that could not have been more correct. If growing muscles to flex were as easy as lifting a spoonful of food to your mouth, everyone would be ripped.
Yes, you may know everything you need to build muscle and stay fit, but has that knowledge, without action, done anything for you? Of course not. Because it is not about what you know; it is about what you do. Just like physical fitness, financial fitness is not just about what you know but about what you do, CONSISTENTLY.
The real challenge? Your brain. The same brain that knows what is right for you to do at certain times is also the same one that stops you from doing it, or at least makes you hesitant. It is not exactly your brain's fault; it is the way it is wired. It is wired for instant gratification, fear, and emotional spending. Of course, if it were wired, you can rewire it; with the right "mental hacks," you can train your brain to act smarter, with your money, not harder. Let's go:
1) Know Your Mental Money Blocks
They say what you do not know cannot hurt you; well, that is not entirely true. While it might seem comforting to believe that remaining unaware of a problem shields you from its consequences, this is often not the case; in order to address a problem, you need to identify it first. By recognizing the issue, you gather information, analyze the situation, and develop a plan of action. Ignoring the problem, on the other hand, allows it to fester and potentially worsen over time. This is why you need to know the blocks your mind has created about money. Some common ones are:
- Loss aversion: Many people fear losing more than they love winning, and that can cause them to run from taking risks even when it is totally smart to do so.
- The Scarcity Mindset: Constantly feeling like there's "never enough" can lead to hoarding or impulsive splurges on "necessities".
Tip: Journaling or using money tracking apps helps you see behavior patterns objectively.
2) Discipline is Overrated; Automate
We all like to believe that we can handle ourselves just fine, but discipline is not just overrated; it is also limited. There is only so much that willpower can do; automation would solve it all; it is a cheat code. Whether it is salaries or returns, make sure you set up auto transfers to your savings and investment accounts, and find a way to round up your money to invest even the spare change. Once you get the money to your investment account, Credlanche can take it from there, while you sit back and get returns on your money.
Brain Trick: If the money does not hit your checking account, you won't miss it.
3) "Gamify" Your Finances
Never underestimate the power of fun; you are more likely to do something if it pleases you than if you consider it such a chore, so turn your money into a game you actually want to play. These options you can consider: set weekly or monthly challenges to meet, use apps that keep saving streaks, give some sort of emotional reward for saving, or compete with friends or business partners in a money challenge.
Pro Tip: Reward yourself (smartly) when you hit milestones—yes, it is spending money, and yes, it still counts as brain training.
4) Delay the Transfer
Train your brain to pause and think before swiping your card or running that money transfer. When you do not put a lot of thought into what you are doing, impulse spending happens. For example, delaying for 24 hours before buying something can remove most of the initial emotional attachment that would have made you buy what you don't need. This also works for online shopping; leave whatever you have selected in the cart for a day before checking out, and you will be shocked at how much you save.
Mental Trick: Putting off a decision can chill out your emotions, letting logic take the wheel.
5) Surround Yourself with Smarter Money Energy
"Show me your friends and I'll tell you who you are" also applies to finances. Your circle can make or break your finances; if you are friends with people who do not have the right mindset about money, it is likely to affect your thoughts about money. Limit your exposure to content that makes you compare what you have with others, and join a community of investors who are money savvy and are keen on investing, creating multiple income streams, and making more for themselves rather than consumption.
Psych: Having financial growth regularly around you helps your brain expect it to happen.
Mastering money does not necessarily involve making intense changes; it's about consistent action and aligning your financial systems. By understanding how your brain works, you can 'hack' your habits and make better financial decisions without constant willpower battles.
Ready to do better at the money game?
Give our customer service team a call for more info about our investment, credit, or asset management services.
+234 812 3778 399
CALL US NOW