“Often there’s that history of financial scarcity and loss somewhere in their background that’s unresolved that leads them to not be able to fully connect with the fact that they’re actually financially secure now,” says Ed Coambs, a certified financial planner and financial therapist in Charlotte, North Carolina.
Once you better understand what’s behind your unhealthy habits, you can begin to repair them.
2. Set personal goals
Ask yourself, “Where are you trying to go? And where are you right now? And then how do you bridge that gap?” Davis says.
Setting financial goals can put you on the path toward healthier habits. Your goals can revolve around specific dollar amounts, such as becoming debt-free or saving three months’ worth of expenses in an emergency fund, Davis says. Or, the goal might be about changing your money mindset, such as becoming more thoughtful about your spending or getting comfortable discussing money with others.
Create a plan that supports your vision of financial health. Say you want to boost your emergency savings or make credit card payments on time. Automating those transactions can help. You can transfer a specific amount from your checking account to savings each month or set up minimum credit card payments through your issuer’s website.