As we enter a new year, many of us seek ways to improve our financial well-being and make better money decisions.
One interesting approach to consider is identifying a touchstone word that can serve as a guiding principle throughout the year. In an article by Ross Levin in the Star Tribune, he discusses how choosing a word can help us focus on our finances and bring about positive change.
Levin shares his personal tradition of selecting a word with his wife, which becomes a touchstone for the year ahead. The chosen word becomes a source of reflection, guiding his actions and mindset in various aspects of life. In the realm of finance, a word that holds particular relevance is "want."
First and foremost, it's essential to understand what you want for your financial security. This involves honestly assessing your current situation and identifying any missing elements.
By understanding what will make you feel secure, you can prioritize your goals and develop a clear financial plan.
Making sound choices is another important aspect of financial well-being.
Levin emphasizes how financial planning encompasses various areas such as tax planning, estate planning, debt management, and investment decisions. It's crucial to integrate these components while aligning them with your values.
Defining your personal values will lead to better decision-making and help you achieve financial harmony.
Evaluating your spending habits is also crucial on the path to financial success. How you choose to spend your money should ultimately align with your values and goals.
Rather than being influenced by societal expectations or comparisons, focus on owning and experiencing things that truly matter to you. This allows for more intentional spending and reduces judgment towards others' financial choices.
In a society constantly driven by the pursuit of more, it's important to find contentment and appreciation for what you already have. By shifting your mindset to wanting what you already possess, you can cultivate gratitude and make the most of your current resources.
Ultimately, the goal is to spend your life wisely.
Financial decisions should align with your long-term objectives and bring fulfillment and joy. By focusing on what truly matters to you and using your touchstone word as a guide, you can make deliberate choices that lead to a more secure and fulfilling financial future.
As we embark on a new year, consider choosing a touchstone word that resonates with your financial aspirations. Let it serve as a constant reminder of your objectives and guide your financial journey. With introspection and clarity, this simple practice can have a profound impact on your financial well-being.
