Control

You may be familiar with this prayer attributed to Reinhold Niebuhr which shows up in many recovery programs, "Grant me the serenity to accept the things I cannot change, courage to change the things I can, and wisdom to know the difference."

Throughout life, there are many things that are out of our control.  If we focus too much on these things, we can lose sight of the things that we can control to make a difference in our lives and the lives of those around us.  Things like the economy, natural disasters, war, political drama, stock market fluctuations, and medical emergencies are out of our control.  Unfortunately, these topics are the focus of most news programs.

After the attacks of 9-11, I stopped watching the news.  I had become so obsessed with the rescuers finding more people alive in the rubble in the days and weeks following and I was losing sleep over something that I had NO control over.  I was up most of the time with a tiny baby who had just come home from four and a half months in the hospital and wanted to be fed and held around the clock.  She needed my attention much more than the television.

In finances, there are many things that are mostly in your control.  Sometimes, we lose sight of these things and become completely overwhelmed to the point where we just give up trying to make it better.  Here are some of the things that you can control:

1.       Financial Education: Continuously improving your financial literacy and knowledge empowers you to make informed decisions about money management, investing, and financial planning.  Keep striving to learn more about how money can work for you.

2.      Emergency Fund: Building an emergency fund to cover unexpected expenses gives you control over financial emergencies and reduces the need to rely on credit cards or loans in times of crisis.  Having a small stash of cash and a separate emergency bank account are ways you can be prepared for the unexpected.

3.      Spending Habits: You can control your spending by making conscious choices about where and how you spend your money, avoiding unnecessary purchases, and distinguishing between needs and wants. You may need to put some strategies in place to help prevent over-spending if this is an issue for you.  Things like not going to the grocery store when you are hungry or having a few specific items and budget in mind when you are clothes shopping can be helpful.

4.      Saving Rate: You have control over how much of your income you save. Setting a savings goal and consistently saving a portion of your income can help build financial security over time.  Even if you just save the first $20 of every paycheck you earn, setting aside savings for later is very important to reach your future goals.

5.      Income Generation: While you may not have direct control over your wages, you can take steps to increase your earning potential through education, skill development, career advancement, or entrepreneurship.  Even during times of job loss, there are ways you can look for alternative income sources until you find the right job.  Unemployment income helps but is meant to be a short-term solution.

6.      Automating Finances: Setting up automatic transfers for savings, investments, and bill payments helps you stay on track with your financial goals and reduces the likelihood of missed payments or late fees.  Building these habits can help you stress less though it does mean you are giving up some of your control by making the payments happen automatically. 

7.      Lifestyle Choices: You can control your lifestyle choices to align with your financial priorities, such as living below your means, downsizing expenses, or finding cost-effective alternatives.  With most things, there are usually lower (and higher) cost alternatives.  It may take some time to shop around or try different stores than you have in the past, but many times the cheaper items are not necessarily that different than the more expensive items.  A lot of times you are paying for the name brand item’s marketing budget not an increase in quality.

8.    Credit Score: You have control over factors that affect your credit score, such as making timely payments, keeping credit card balances low, and monitoring your credit report for errors.  There are many steps you can take to increase your credit score over time.  This can help you save on loan interest, insurance and make it easier to buy a home or car and get a job.

9.     Self-discipline: Exercising self-discipline and self-control in managing your finances empowers you to make smart choices that support your long-term financial well-being. This can be in not taking on debt that you cannot afford, waiting to buy something when you need it or can afford it, and choosing not to buy something you don’t need in order to pay for things that are more important to you.

10.  Mindset: Cultivating a positive mindset and healthy attitudes toward money can influence your financial behaviors and habits, leading to better financial outcomes.  Surrounding yourself with positive and supportive influences can help keep you on the path of having a positive mindset.

While there are many factors that impact our financial lives, we have a considerable amount of control over our financial destinies. By focusing on the things we can control, we can empower ourselves to shape our financial futures. By taking proactive steps, making informed choices, and cultivating healthy financial habits, we can build our confidence and resilience. Remember, financial success is not just determined by the circumstances we encounter, but rather by the actions we choose to take in response to them.