In this article I am going to share three important ways that starting with why will help you to save more money.
W-h-y. Those three letters are incredibly powerful. Understanding your financial why may be your most powerful tool for curbing your overspending and starting to save and invest.
And the reason is pretty simple: in order to change old habits and start new, better habits, we’ve got to have a very strong motivation—and that motivation, for many people, is their why. To learn more about the power of why, I highly recommend the book Start with Why, by Simon Sinek. It is (and all of his books are) an excellent read.
Read below to learn 3 important ways that starting with why can help you to save more of your hard-earned money!
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3 Important Ways That Starting with Why Will Help You to Save More Money
When it comes to your money, understanding your financial why can be a huge motivator.
1. Think about and write down your why to help get you motivated to start saving money.
What is your own financial why (or what are your financial whys)?
In order to be effective, your why has to be powerful—more powerful than your urge to buy stuff or do things you can’t really afford—or better put, things that jeopardize your long-term financial stability or goals.
Maybe your why is to have financial security, have a roof over your head that no one can take, have one parent be able to stay home with your children, be able to quit corporate life, be financially independent early on in life, live in comfort (or luxury) in retirement, be able to give very generously to worthy causes, be an example of exemplary money management to your kids, or be able to retire early to travel, volunteer, or spend time with your children or grandchildren.
Take some time to consider your own financial circumstances and your own financial why, and then write it down on a piece of paper (or print it up all nice and fancy :)) and put it in a place where you will see it often to help you stay motivated.
Check out these related articles:
- 9 Simple Steps to Help You Finally Start Saving Your Money!
- 7 Simple Steps to Create a Budget That Will Actually Work!
- The Ultimate Beginner’s Guide to Budgeting
- 16 Must-Know Tips to Stop Living Paycheck to Paycheck
- 15 Top Tips to Finally Stop Overspending
- How to Do a No-Spend Challenge to Save Money Fast!
2. Use your financial why to discover your financial dreams and set financial goals.
In order to reach your financial goals and accomplish great things in your life by managing your money well, you’ve got to have a roadmap. One of my favorite quotes is from Steven R. Covey: “Begin with the end in mind” (The 7 Habits of Highly Effective People). Take some time to sit down with your spouse and determine where you would like to be financially 3, 5, 10, 20, and even 40 years from now.
Then work backward to think about the kinds of habits you’re going to need to develop now and the amount of money you’re going to need to save and invest to make those things a reality. For example, if you know you want a vacation home near the beach by the time you retire, how much extra would you need to invest in your retirement accounts to make that happen? And then do your best to work backward and figure out how much extra you would need to invest in your 401(k)s or IRAs each month.
And remember the power of why. While you’re identifying your financial goals always keep in mind your financial whys—why is it worth getting out of debt? Why is it worth saving for retirement? Why is it worth saving for your children’s college educations? Why should you stop using your credit cards to buy things you can’t afford? Why should you pay off your home early? Why should you retire early(!)? Once you’ve talked about your whys, talk about the goals and dreams related to those whys, and make plans to accomplish them! Turn your whys into will-dos, and get after it!
For me, my financial whys are extremely strong motivators. My current financial goal is to be able to get this blog to the point where it can replace my full-time income so that I can be home all day with our three little cherubs. Even though I love my current job, being able to be home with our children is something I want even more, and so I’m willing (very willing, really) to make sacrifices (of sleep, mostly, and leisure time or “me” time) to make that hope and dream a reality. And then they aren’t really sacrifices at all—just choices to be made.
When your motivators are strong enough, you will choose to stop living paycheck to paycheck or stop overspending, start saving, and get control of your money.
Note: Need motivation? Have something you want to share? A success, a frustration, a fear? Post it in our new, closed Families for Financial Freedom Facebook group! It’s a supportive community where we’re all working together to learn and to grow and to help each other improve our finances and reach our financial goals and dreams.
What is your why? What are your motivators? What is worth fighting for and striving for and maybe giving up some of the things you might want now for something (or some things) you want even more? Sit down with your spouse tonight (or within the next couple of days, if you can’t tonight) and write out your financial dreams.
As you do, think about these questions: What are the financial priorities that really mean something to you and to your family? And what do you need to change to reach your financial dreams? Then write down the goals that will allow you to reach those dreams.
3. Use your financial why to help you commit to start saving more money and spending less money today!
Now date the document where you just wrote down your dreams and goals. Make sure to do that, because this is the beginning of the rest of your life—this is where you draw a line in the sand and you decide that you are going to control you in order to clean up your finances, begin to spend less, start to save more, and work toward building lasting financial security and wealth. Today is the day you begin a purposeful journey toward your own financial freedom. It begins today.
Now put that paper where you will see it often to help keep you motivated and on track. Roll up your sleeves, and let’s get to work.
What is your financial why? Do you have big financial dreams and goals you are working toward or that you are now going to start working toward? I would love to hear your plans and know your financial goals and dreams! Leave a comment below and let me know!
Invitation to Share
Was there something in this article that inspired you to change something about your money? Are there ideas or tips that you feel could help others? Would you please take a minute to share this article via email or social media? I would love your help to share these principles of financial well-being. Thank you!
Join our closed Families for Financial Freedom Facebook group to get support and share ideas for how we can all improve our financial well-being by earning more, spending less, saving more, and investing more and reach our financial goals. You can do this! And we are here to help.