I do. Though it happened a long time ago, thinking about them still makes stomach form knots, draws perspiration from my forehead, and raises my blood pressure a bit. They make me cringe in fear that they might come and pay me another visit.

That experience urged me to write a blog post three months ago hoping that other seniors can avoid the financial mess I was in years back.

And they are many. According to the NCOA (National Council on Aging), one in three Americans, aged 65 and above, cannot afford to pay for their basic needs like food, housing, and health care.

You are, indeed, blessed if you are not one of them. But it doesn’t mean you are exempted from developing a positive money attitude, because no matter how financially capable you are, money is a very perishable commodity. A hiccup in the financial market can evaporate your savings faster than an early-morning dew.

Here’s how:

1.  Let go of your past financial mistakes:

There is probably no person, dead or alive, who has not made a financial mistake. The best and the brightest have. But they moved on, carrying with them bitter lessons that have guided their future actions.

Not being able to let go is to be a prisoner of the past and a hostage of the future. Developing a positive money attitude is starting all over without any hang-ups of the past.

2.  Learn how to value money:

Seneca said, “It is not the man who has too little, but the man who craves more, that is poor.”

Money is an instrument, a wealth, a resource meant to serve your needs, not to splurge on your wants.

It takes hard labor to earn it, so don’t spend it if its supply will last forever because it won’t. Let it serve you, not enslave you.

3.  Don’t compare yourself with others:

Comparing yourself with others is probably one of the reasons that got you into a financial mess. Stop it. Your situation is peculiar to you, not of other people. You have your own needs and wants which are different from theirs.

Besides you don’t know the inner devils they are fighting against each day. You don’t know if you are financially better off than them.

So focus on your own goals, savor on your achievements, adjust your direction if you are veering off course.

4.  Develop a budget:

The word “budget” always fills people with dread because it automatically means restrictions. On the contrary, having a budget is freedom.

It allows you to live your life without any financial hassle because you are aware of where your money went; you are aware that you have the means to cover your needs.

Without a budget is like flying blind. And it is very stressful to realize that you have nothing left to pay for an obligation.

Here’s an easy way to do it. Follow the 50/30/20 rule of making a budget. This means using 50% of your earnings for your basics, i.e., housing, food, gas, medicines, etc. Use 30% for leisure, i.e., vacation, special classes, or on a hobby. The rest, 20% for savings. If you have obligations, use that to pay them off before setting up a savings account.

5.  Develop good habits:

Once you’ve set the goal of developing a good money attitude, then develop habits to support your goal. You cannot just let things happen by themselves. You must make them happen.

One such habit is to develop and budget and track your expenses against your budget. Set a specific time of the day to see how you are financially performing against your goals.

Make it a habit to make a cost-benefit analysis of your purchases. This way, you won’t end up buying something that will just gather dust in your closet.

Another is a simplification of your lifestyle by going “minimalist.” Get rid of things you don’t need. Check your buying preferences and see how you can make substitutions to save a dollar here and there. Start to “trim your sails,” so to speak.

It’s not that you need to save, per se, but it will rid you of the tendency to go overboard with your spending.

6.  Develop a grateful heart:

I know how difficult it is to be grateful if you have practically nothing, you are down on your luck, and the bills are piling up.

Yes, it is. But what could a better alternative be Six feet under the ground?

The fact that you are alive with all your faculties intact, is a good enough reason to be thankful because you can get back into the race.

Developing a grateful heart takes time and practice, just like anything else. But it can be done.

The easiest way to do it is to recite a grateful mantra every day.

Here is a good example:

“All challenges are an opportunity for growth and I am thankful for the chance to evolve.”

I got out of my financial mess several years ago through sheer will power (and a little help from a kind-hearted cousin). It strengthened me and made me resolve never to gamble my financial future again on things without a clear end-game.

It instilled in me a positive attitude towards money.

Please share so other seniors with money problems be motivated to make their own strategies. 

~oOo~

The post How to Develop a Positive Money Attitude first appeared on Age With Charm.

Are you having money problems You are not alone. A lot of people, worldwide, have the same problem.

While younger adults can survive it, seniors often find it difficult to wiggle around the problem. Because of age, they have very few mitigation measures to rely on.

And it is ironic that it comes at a time for joy and relaxation; a time to travel or do something interesting, reflect, write a book, or simply put one’s feet on a chair and take things easy.

Instead, they are stressed out not knowing where to get the money to pay the bills, buy nutritious food, or much-needed medicines. They don’t go out to save on transportation money, nor socialize to avoid unnecessary expenses.

If you are one of them, you a pariah to your own self. Money problems shut you off from the world, make you want to dig a hole in the ground and disappear. It robs you of the freedom of choice.

I know how it feels because I was in a very grave financial situation a few years back. It was tough; it made me feel suicidal. What kept me going then was my wife who encouraged me never to give up.

And I did not.

In hindsight, I find it kind of funny that in the depth of your despair, that’s when you see the light.

I suddenly realized that agonizing over money will not make the problem disappear; money will not rain down from heaven even if you cry buckets of tears.

It made me realize that if you look at money problems from a different perspective, you will find valuable lessons from your misfortunes – the silver lining behind the dark clouds.

I still have money problems but not as serious as before. And that episode in my life made a better person of me. It helped me, and it can help you. I

Here they are:

1.  Have a good attitude about money:

Money is an instrument to sustain life, not life itself.

If you consider money the centerpiece of your life, you will forever be miserable because you will never be satisfied with what you have, no matter how large a fortune it is.

So use it to give meaning to your life. Use it wisely and prudently. It is hard to come by, and once it is gone for good. And if you are a retiree, replenishing it is next to impossible.

Howard Schultz said, “…I have never defined myself by my worth. I always try to define myself by my values.”

2.  Live humbly:

I have learned over the years that pride ultimately drags you down.

There’s nothing wrong with self-confidence. In fact, we should all be confident with ourselves. But beyond that, when it becomes egoism, it is unhealthy – especially if your ego cannot be sustained or supported.

Live humbly. Humility has its rewards. Besides, after having reached this far, there is nothing to prove anymore, is there?

Henry David Thoreau said, “I make myself rich by making my wants few.”

3.  Be practical in your purchases:

People often buy things due to peer pressure or because it is the “in thing.” They want to keep up with the Jones’s. Unwittingly, they get into serious money problems.

Don’t be like them. Buy things because they serve your needs and your budget. While some argue that expensive things last longer, you still have to balance the pros and cons before opening your wallet. There is no point in buying something that will outlive you.

4.  Learn from your mistakes:

They say that life is a good teacher. And it never makes a mistake – if only people heed its lessons.

Your financial problems are not caused by somebody else, or that you were born under an unlucky star. They are caused by the things you did in the past. So don’t ever do them again.

Heed Bill Gates’ advice when he said, “It’s fine to celebrate success, but it’s important to heed the lesson of failure.”

5.  Make a budget and stick to it:

Another experience I learned over the years is that the best way to get into money troubles is not having a budget.

No matter how small your financial resources are, have a budget. That is the only way to account for and control your expenses. Without it, you will never know where your scant resources went. You will never know if you’ve bought all you need.

If Thomas Boone Pickens, chairman of BP Capital Management, has a budget, shouldn’t you?

He carries a list when he buys his groceries and will only carry the amount to cover them all. He says, “You couldn’t spend money you don’t have.”

6.  Save:

It may soon foolish to talk about saving if you have barely enough to last a month.

If you keep to your budget and exercise restraint in your spending, you can. It may be difficult, but it is a smart thing to do to cover unseen emergencies.

Set aside for the rainy days any amount you can squeeze off your budget. Over time, it can buy a loaf of bread or a box of milk.

7.  Sell a service:

If you have reached this far and still healthy you can earn a few dollars by selling a service.

If you have money problems, it would not be a bad idea to sell your skills to people or organizations in need of it.

There is nothing to be shy about it. You need extra cash, then go out and earn it. Besides, a lot of people are already into it, they created the work-from-home industry.

Money problems among seniors cannot be taken lightly because of the magnitude of the problem and its consequences.

It can lead to physical and mental health problems, put a strain on your relationships, and can cause family breakups.

While it can be argued that your money problems have their roots way back, but it is up to you to stop them from spreading before they choke you to death.

Please help other seniors by sharing this. Better still, subscribe to my newsletter to get a weekly update of the exciting and bittersweet life of a senior.

Image: //time.com/money/4258451/retirement-savings-survey/

~oOo~

The post Simple Tips to Avoid Money Problems first appeared on Age With Charm.