Beyond Numbers: Embrace Emotional Financial Planning for Success in 2024

As we step into 2024, your journey to financial success is intertwined with your emotional well-being. Mastering the practise of Emotional Financial Planning is about looking beyond numbers and budgets; it’s about understanding how our feelings impact our financial decisions. This quick guide will help you along the path towards building a harmonious blend of financial savvy and emotional intelligence. It discusses financial strategies but also delves into the nuances of Emotional Financial Planning.

“You must create space in your life to let new things in. Sometimes the things you’re holding onto are the very things that are holding you back.” – Anon

Letting go of something that no longer serves you can be challenging at the time, but in doing so you are not just removing negative habits, thought patterns or physical things that you do not need any more, you are also opening your arms to new possibilities.

Why do we hang on?

Letting go, a core principle in emotional financial planning, can be easier said than done. Recognising that we are all creatures of habit and gravitate towards ‘sticking to what we know’, is a key part of Emotional Financial Planning.

We tend not to like letting go of the familiar to venture into the unknown, but just because things are comfortable or familiar does not mean they are working for you.

As we move through life, we change and it’s common to find that some of our beliefs, habits, or existing goals, may not work for us anymore. If that’s sounding familiar it might be time to let go.

Liberate yourself

In emotional financial planning, it can be tricky to identify what needs to go, but trusting your gut is essential. Think about what you are hanging onto that is not serving you well any more – be that a goal that no longer suits where you now see your life going, a job you once enjoyed but that is now not making you happy, or a way of thinking or behaving that does not help you move your life in the direction you want it to take.

Everyone is different, but with a bit of self-examination you can decide how to best lighten your load for the New Year.

Breaking those bad habits

In emotional financial planning, recognising habits and behaviours that don’t serve us well is crucial. You might recognise that you are prone to procrastination and it’s interfering with your ability to get things done. Making a conscious effort to address this and develop the discipline to work through a to-do list could be the best move you make to start the new year afresh.

Or you might decide now is the time to address your spending habits and get on top of your finances – ditching the unnecessary purchases and being more mindful in your spending.

Lightening the load

If your emotional baggage is starting to feel like a literal weight on your shoulders, it is time to actively address some of these emotions and lighten the load. Be it past failures, or even previous successes, unresolved anger, hurt and regret, this baggage can weigh us down.

Talking to a trusted friend or seeking professional help can help you identify what’s going on and unpack some of that baggage.

Cutting through the clutter

Of course, letting go might be more about your physical environment rather than your emotions and habits. It’s easy to accumulate ‘stuff’ but often harder to let it go.

It can be a wonderful start to a brand-new year to go through your things and get rid of anything that is not serving a purpose, letting go things that are not useful or don’t give you joy.

Letting go is a process not a destination, once you’ve made your decisions about how you intend to move into the New Year, make the commitment to create space in your life, allowing you to grow, achieve your goals and move forward with your life in a positive way.

This article is intended as an information source only and to provide general information only. The comments, examples, words and extracts from legislation and other sources in this publication do not constitute legal advice, financial or tax advice and should not be relied upon as such. All readers should seek advice from a professional adviser regarding the application of any of the comments in this article to their particular situation.