Horrible With Money? Here’s How To Reset Your Financial Life
Written by
Nicole Spector
Edited by
Gary Dudak
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
Most Americans are barely getting by financially. Many don’t have enough put away in an emergency fund or an ample nest egg for retirement. We’re slammed with rising costs of living, inflation and fears of a looming recession.
Even worse, we also tend to develop bad financial habits — and we know we’re not doing well with our money. A 2022 survey by CouponFollow found that 70% of Americans identify bad spending habits as one of their most harmful financial weaknesses. Another way of putting it: many of us see ourselves as being horrible with money.
Getting your act together in this department is critical. Not only will it benefit your financial situation, but it will make you feel better about yourself and your decision making. But how do you reset your financial life when you’re horrible with money? Let’s find out.
Trick Yourself
Anna Boyd, owner and operator of Singled Out Wealth, said that when she was starting out in her financial journey, she was horrible with money. One helpful habit she developed that saved her thousands was “tricking” herself.
“I would set aside $20 from my paycheck every week, telling myself I would come back to it later,” Boyd said. “What usually happens is that I forget about it, and over time the little stash starts to add up. I like this method because it doesn’t hurt my wallet but also helps my savings grow.”
Make Saving Effortless
Want to make saving money easier? Automate your financial life as much as possible.
“Use automation to automatically separate your money for you,” Boyd said. “For example, consider apps that automatically transfer your spare change to savings. This will make it so easy that you don’t even have to think about it. Seriously, make saving money as mindless as binge-watching Netflix. This approach will help you turn your good intentions into effortless habits, freeing you to focus on enjoying life rather than worrying about finances.”
Focus on Getting Your Credit to a Healthy Place
If being horrible with money has led you to a precarious place with your credit, focus on turning that around and boosting your credit score.
“As a consumer protection attorney, I can tell you that embracing your credit health is one of the most important things you can do for yourself,” said Daniel Cohen, founding partner of Consumer Attorneys. “For better or worse, every significant financial opportunity hinges on the perception of your creditworthiness. Positive creditworthiness means that a financial decision-maker believes you can be trusted to make timely and complete payments toward a loan or debt in accordance with the contract terms (e.g. lease, credit card, car loan, rental property, mortgage, etc.).”
He added, “Typically, being ‘horrible’ with money means engaging in some level of overspending, accruing outsized debts, making habitually late or missed payments, applying for an excessive number of store cards or credit cards, authorizing frequent credit checks and potentially experiencing bankruptcy or similar catastrophic financial events. Though the impact these actions have on your credit health can vary, all fall within the range from not good to detrimental. So, to the extent possible, stop engaging in those behaviors.”
Combine Budgeting Methods
You don’t have to stay loyal to only one budgeting method. You can mix it up.
“One size does not fit all, especially when it comes to budgeting,” Boyd said. “Maybe a strict zero-based budget feels like you’re being too strict with your money. Try mixing different methods — use the envelope system with a flexible plan like the 50/30/20 rule. The key is to keep trying different combinations until you find a budget that feels right for you. This blend gives you structure with the freedom to adapt as your financial situation changes. The best budget is one that you can stick with consistently, so keep tweaking it until it fits your lifestyle perfectly.”
Get ‘Goal Friends’
Resetting your financial life takes effort and can be difficult to do overnight. Partnering up with pals who are also trying to get better with money can make the process less lonely, and possibly even fun.
“Having friends who have their own money goals can help,” Boyd said. “This can be a friend, a co-worker or anyone who also wants to get good with money. Keep each other on track, celebrate your wins and hold each other accountable. You can swap money-saving tips, talk about ways to cut spending and even set up challenges to see who can save more. When you feel like buying something you don’t need, it helps to have a friend remind you of your goals. Plus, it’s much more fun to celebrate your financial wins with someone else.”
Make Saving a Game and Reward Your Wins
Saving money can be stressful — but less so if you gamify it, so to speak. You should also reward your wins provided that doesn’t enable overspending.
“Set up challenges, like a no-spend week or a saving sprint towards a short-term goal,” Boyd said. “If there is one thing I’ve learned about sticking to your budget and saving money, it’s that you need small wins to stay motivated. Reward yourself with something small but satisfying like a movie night or a no-spend solo date. This will help you to look forward to meeting and exceeding any financial goals you have set for yourself.”
Put Your Future Self First — And Visualize a Financially Happy Life
Don’t overlook the power of visualization. Think about what you want for your future self wants and needs. Aim to empower yourself to get to that place of financial stability and prosperity.
“Imagine your future self on a beach, relaxing with your favorite drink in hand and not having to worry about money,” Boyd said. “Send your future self some cash now by prioritizing your future needs over immediate wants, and start to visualize what you want in the future, like being free from debt or owning a cool condo.”
More From GOBankingRates
