The Best Financial Plan Is the One That Motivates You to Take Action.
When we talk about financial choices, everyone thinks there is a “correct” answer. And, mathematically, maybe. But no matter your situation, the best plan is one that will motivate you to take action to improve your financial life.
As the personal finance blog Budgets Are Sexy explains, there is an often overlooked psychological component in saving money and paying off debt. You cannot develop good habits overnight, and whatever motivation you can generate will help. If a particular plan inspires or motivates change, you can continue with it, even if it is not the most optimized:
Yes, most of them have a financially “correct” answer, which of course you should consider, but if you are like me *, you will get MUCH more achievements when you are really excited about what you are working on compared to looking only on numbers. I can pay off debt like a mother when I’m in the mood, and as an alternative, I can turn around and save-save-save if my priorities and interests change over time. But that should motivate me enough to take action!
Obviously, this does not mean that a complete lack of impulse control is financially justified. But a savings plan that worries you or makes you feel good is better than one that you give up in a couple of months. Your motivation is just as important to your financial life as numbers, especially when you are trying to change your habits.
My Answer To All Financial Debates | Budgets are sexy via Rockstar Finance