Breaking Out of a Scarcity Mindset

Hey Kristin, For years, my partner and I lived paycheck to paycheck, stuck in a scarcity mindset. Fortunately, we've moved past that stage. Now that we're in a better financial position, how can we break free from that scarcity mentality and lead a balanced life without going overboard? Yours, Unsure on the East Coast

Overcoming Financial Struggles

Hi Unsure, I understand the challenge of transitioning from financial hardship to a more stable situation. It can be tough to let go of the fear of losing everything you've worked for. However, life is not just about surviving, but also about thriving. It's okay to treat yourself and enjoy the fruits of your labor. Remember, it's important to strike a balance between enjoying today and saving for tomorrow.

One way to ease your worries is by building an emergency fund. This safety net can provide peace of mind in case of unexpected expenses or financial setbacks. Additionally, creating a budget can help you allocate your income wisely. Consider following the 50/30/20 rule, where 50% of your income covers needs, 30% goes towards wants, and 20% is saved for the future.

It's crucial to have open communication with your partner about financial goals and aspirations. By prioritizing savings and investments, you can work towards a more secure future while also enjoying the present. Remember, it's a journey of progress, so be kind to yourself as you navigate through this mental shift. Best of luck on your financial wellness journey! -Kristin