Now is as good a time as any to revisit your life’s priorities and let go of the habits and behaviors that no longer serve you. Letting go allows you to rid yourself of draining habits, beliefs, processes and relationships that take away from your happiness and purpose. It also allows you to refocus your efforts on good financial habits and personal routines that support your long term goals, financial goals, and your overall financial wellness.
Financial Benefits of Letting Go
Leaving behind financial habits that are no longer beneficial can help you to direct your financial resources to efforts that will improve your long-term financial security.
Streamlining your financial lifestyle can lead to fewer possessions and less time and money spent on maintenance, cleaning, repairs, storage and upkeep. This kind of mindful spending can free up more money for saving, investing and building wealth.
Refocus on your most important financial priorities.
Some spending patterns don’t help you progress toward your most important financial goals. Consider what behaviors may be standing in your way. For example, perhaps you’ve been feeling pressured to “keep up with the Joneses,” or maybe your current level of spending isn’t sustainable over the long term and is crowding out long term saving and investing.
Whatever the cause, taking time to articulate your financial priorities and focus on what’s truly important can give you the strength to shed harmful patterns and make financial decisions that move you closer to lasting financial success and financial security.
Achieve additional freedom to pursue opportunities.
Letting go can give you the financial freedom to make a change from a stressful, draining job to a career that brings you joy and fulfillment. Or you may find that shifting your financial resources from things to experiences enhances your happiness and sense of fulfillment.
Over time, these healthier financial habits can support wealth building, long term savings and a more confident financial future.
Personal Benefits of Letting Go
In addition to financial benefits, letting go of what no longer serves you can potentially enhance your personal life by:
• Reducing your stress and anxiety
• Enhancing your sense of clarity and purpose
• Allowing you the freedom to spend time with loved ones and engage in fulfilling hobbies, rather than maintaining “stuff”
• Giving you the freedom to pursue healthy habits like exercise, time spent outdoors, and better sleep.
Letting go is ultimately about aligning your time, energy, and money with what matters most so your daily choices reflect your goals. And a financial plan can help you make decisions that are in your long term best interests and avoid harmful financial habits.
AJ Kratz, CFA, CFP, is a Private Wealth Manager and Partner with Creative Planning. Creative Planning is one of the nation’s largest registered investment advisory firms, providing comprehensive wealth management services to help align all elements of a client’s financial life, including investments, taxes, estate planning, and risk management. For more information, or to request a free, no-obligation consultation, visit creativeplanning.com.
This commentary is provided for general information purposes only, should not be construed as investment, tax or legal advice, and does not constitute an attorney/client relationship. Past performance of any market results is no assurance of future performance. The information contained herein has been obtained from sources deemed reliable but is not guaranteed.