Moving Forward: How to Let Go of Past Financial Mistakes

Relax, it's just money.

Let's be honest, we have all made mistakes when it comes to money and managing our finances. It is a part of life.

And understandbly so. We were never taught how to manage our personal finances in school. 

Don't let your past financial mistakes dictate how you manage your money moving forward. You have made some bad financial decisions in the past... and that's okay. You will recover. Do not let the guilt, stress or anxiety take over and paralyze you from taking control.

Accepting the Past.

Acknowledge the mistakes you have made and use them as a learning opportunity!

Take a moment to reflect. Write down what happened and how it affected your finances. This can help you see the situation more clearly and start the process of letting go.

Stop Dwelling over past financial mistakes.

It's time to move on. What's done is done and there is no sense of beating yourself up over what has already happened. 

You have a choice to either continue to live with self doubt & limiting beliefs, or you have a new chance to rewrite your narrative. 

The choice is yours.

Creating a New Plan.

Now that you have found peace with where you are at, it's time to create a new financial plan. Start by setting clear goals aligned with your values.

Write down 2-3 long term financial goals and 2-4 "micro" goals. 

Long term goals are the bigger vision goals top priority goals that you may have such as saving for a home, building your retirement fund, saving for a sabbitcal/ large consumer good. 

Micro goals are a way to break down your bigger goals into smaller more attainable tasks in the short term and build good habits. This could include things like save $50 a week towards an emergency fund, set a monthly going out budget, start meal planning to save money on groceries, set up a re-occuring investment. 

Remember, there are no right or wrong goals and no perfect timeline. 

Build an Emergency Fund

First thing is first, let's get your foundation in order if you haven't already built it. It's important to get into the habit of paying yourself first and setting aside money into a savings account. Continue putting aside funds into a savings account every time you get paid until you have
at least 3 months of living expenses at minimum, 6 months is ideal!

An emergency savings account allows you to have peace of mind and financial security to avoid stress when unexpected expenses come up. It also ensures you do not go into debt to cover unexpected expenses.

It is the foundation to money management.

Asking for help.

Don't be afraid to ask for help. A professional can offer valuable insights and strategies that you might not have considered. It can also be comforting to share your financial mistakes in a judgement free space to help with closure and letting go of the past. 

Staying Committed

Finally, stay committed to your new financial plan. It can be challenging to change old habits, but persistence is key. Regularly review your goals and progress to ensure you are on track. Financial success and growth does not happen overnight. 

Adopt a long term mindset and focus on the lifestyle. Don't expect an overnight quick fix.

Remember to celebrate small victories along the way. This will keep you motivated and focused on your long-term financial health.