January 2nd 2024.
As the year draws to a close, many people are already dreading the financial hangover that will greet them when the bills for holiday shopping and spending come due. Tonya Rapley, millennial money expert and MyFabFinance founder, calls this the most “won-debtful” time of the year, because many people accumulate their debt during the Christmas season. Rapley created My Fab Finance to help millennials break the cycle of living paycheck to paycheck to become financially free and do more of what they love.
If you want to leave past poor financial choices behind and create a fresh, new money story for yourself, Rapley has some valuable advice. She recommends five steps to leave old money habits behind and position yourself for a fresh start in the new year.
First, don't carry a negative money story into the new year. Rapley says, “It's important to realize that what happened this year, the money mistakes that you made, you don't have to make next year. A lot of people allow their financial baggage to weigh them down so that it affects their self-esteem; they feel hopeless, and they think, ‘What does it even matter? Why should I even get back on track financially?’ But the good thing about money is that you can literally create a new money story next year. People need to remember that because one of the biggest things I see people do is count themselves out because of the past money mistakes they made. Those mistakes aren’t the end of your story, and you can rebuild after them.”
The next step is to get clear about your financial situation. Rapley suggests sitting down and assessing your entire financial picture: “Here’s how much debt I have. Here’s what I have in savings. Here’s what my credit score is. Here are what my goals are. This is my investment portfolio.”
Then, commit to doing something different. Rapley says, “You want to think about the small things that you can do differently. It could be as simple as ‘I'm going to take a different route to work because there’s a Starbucks on that route, and I always stop [to spend money] at Starbucks.’ What are you going to do differently to increase your bottom line, bring more money into your household, but also to maintain your savings, grow your money, and allow your money to work for you? Maybe it is picking up a side hustle or part-time job at the top of the year.”
Fourth, focus on healing your relationship with money. Rapley recommends understanding your money story, and what has shaped and informed your relationship with money. Make a commitment to yourself to heal that money story, because a lot of us are carrying around financial baggage from our childhood.
Finally, achieve small goals to create a winning mindset. Rapley suggests, “Put yourself in a position to win. One of the biggest boosters is achieving a victory for yourself. They don't have to be big, audacious goals; it could be ‘I'm going to save $25 a week.’ Once you begin to achieve your financial goals, psychologically, something begins to click. You get the mindset of a winner, as opposed to that of someone who is struggling or losing. Really focus on small victories so that you can boost your own morale. Don't look for others to be your cheerleader and your champion. Find ways to create success in your life and your finances, so that you can be your own champion.”
If you want to create a fresh, new money story for yourself, Tonya Rapley's five steps are a great way to get started. With the right attitude and determination, you can leave past poor financial choices behind and set yourself up for financial success in the new year.
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