2020 has been quite the year for the entire world.
With natural disasters, Covid-19, downturn in the economy, jobs lost...I could go on.
We've learned a lot about ourselves this year. We've learned where we're at with money, health – both mental and physical, family relationships, and our career. We've definitely learned the areas that need improvement and the areas that were strengthened during hardships.
I wanted to share with you the top 8 best and worst money mistakes that I've learned this year in hopes that it helps you learn and better manage your money better in the new year.
1. Just because the world is on fire, doesn't mean you need to buy into it.
We went out and stocked up on food and all the necessities like the rest of the population for fear of grocery stores closing. This was extremely expensive and threw us off of our budget – by a lot. Even during a pandemic, grocery stores stayed open and we learned that we don't need to buy into the fear that everyone else is peddling. We typically keep 1-2 months of food at a time (in dry goods and camping meals) which would have been sufficient enough. Next time the world is on fire, we know not to buy into the fear that everyone is pushing and (if anything) stay out of the grocery stores because they're madhouses!
2. Ambitions are nice, but ambition doesn't put money in the bank.
Setting a financial goal is great and I highly encourage everyone to do that, but it's not everything. Doing the work is far more important than wishing about it.
Think about it in terms of wanting to lose weight. You can't look at your workout equipment and continue your eating habits if you want a certain result. You have to put in the work in terms of sweat equity. I dreamed of starting a successful business this year and wrote out well thought out plans that would set us up for financial success. But, do you know what I didn't do? I didn't follow through on those well thought out plans. I kept diverting, shifting the target, and not holding myself accountable. If you want your ambitions to become the reality, you need to take consistant action towards your goals. One step every day.
3. Money isn't everything.
This year has taught me so much about myself and my mindset around money. I admit that I'm not perfect when it comes to money mindset, and that's one reason I help my clients walk through healthy money mindset because I need a continual reminder for myself to put money in it's right place. Money really isn't everything. I've learned that spending more time with family, focusing on my health, and spending time doing things that bring me joy are much more fulfilling than a large paycheck could ever be.
Life is meant to be lived, not striving, toiling, and working yourself to the bone to make your dreams come true without even have the time freedom to enjoy the fruits of your labor.
4. Sometimes goals need to shift, and that's ok.
This year has been the year of the "PIVVOOT!" (Friends, anyone?) We've all had to pivot our goals to some extent. If only for a couple of months, we had to shift direction and I wanted to give you the permission – if you needed it – to give yourself grace for having to shift your priorities. We shifted our priorities this year from focusing solely on paying off debt, to spending more quality time with family, caring for our health, and doing more that makes us happy – which involved a lot of time hiking outdoors and working on the garden. All of these things took away from our overall goal of paying off debt, but it didn't completely stop us in our tracks. We still payed off $33,000 of debt this year!
5. Health is important, don't take it for granted.
2020 has been a wake up call for many to gain back their health. Whether