O is for Over-Prepared vs. Overwhelmed

Being over-prepared when it comes to your finances doesn’t seem like a negative preoccupation. But when over-preparing your finances feel overwhelming, it is time to take a step back and reassess your finances.

Budgeting, investing, saving, and the likes are essential to healthy and prosperous finances. However, planning your life to fit into that category takes a lot of mindfulness and dedication. When it feels like there is too much planning and not enough living, managing your finances can become overwhelming.

The balance between managing your finances successfully and being overwhelmed by the thought of them can be a fine line. So here are a few things to keep in mind so as not to get overwhelmed:

Be Realistic

It can be easy to say, “I will only bring my lunch to work to save money.” It is a great idea and could save you thousands per year. But it may not be feasible if you don’t know how to cook or have nowhere to store food while at work. Being realistic about how and what you spend your money on is the first step in not feeling overwhelmed by making a financial plan.

Know What You Want/Need

Having clear financial goals is integral to not feeling overwhelmed with how you plan to spend your money. For example, if you know you want to retire early or must take an expensive cross-country flight to visit family every year, it is better to budget that into your financial needs than to be surprised by it when it comes up each year.

Plan Ahead

This is a bit trickier, especially if managing your finances overwhelms you easily. But this is where being over-prepared can be helpful. The more you plan and prepare for your future, the better your finances will be.

Remember, you are not alone. Being overwhelmed by your finances is common, but it doesn’t have to be. So, start here, do some research, create a plan and talk to your financial advisor today to get set up for success.