28 Dec
2009

Mastering your finances means looking at all the little things that make up your finances – your unsecured debt, your credit score, your secured loans, your income, your investments, your savings – but it also means taking a look at the big picture. If you want to improve your finances this year, consider taking a holistic approach to money.

You can start by going over your psychology when it comes to money. Think long and hard about your attitude towards money. Many of us grow up with some very mixed messages about money. On the one hand, it’s great to have it. It may make us feel good and we may be taught that people with money should be respected. On the other hand, we may be told that money is “dirty” or that having lots of money means that you are stepping on someone to get it (think of how the wealthy are depicted in cartoons and movies).

It may seem New Age-y, but how you think about money can affect what’s in your pocketbook. If you don’t have a healthy respect for money, how can you expect to have a healthy bank account? If you are timid with money, you might not be investing and if you are uncomfortable with money you could be spending it all just to get some relief. Consider all the ways that you think about money. What are your attitudes and how have these attitudes shaped your money decisions? What are your attitudes about saving and earning? What do you need to change in your thinking to make 2010 more prosperous?