Three Habits of Financial Optimists
Start Managing Your Money Like an Optimist
There are three simple habits that anyone can adopt to unlock the power of optimism and improve their financial health.
Adopting these habits
For many, questions about finances are top of mind right now. In times like these, it's important to maintain a healthy attitude toward spending and saving. While conducting research, the team at Frost noticed that those who implement these three habits see some big benefits. Their financial health is likely to increase 7x over, they experience 145 fewer days of financial stress (that’s a lot of days!) and are much more likely to recover from a financial setback.
Explore below for tips on how to work each habit into your daily life.
1. Take the taboo out of money
Optimists aren’t afraid to talk and learn about money.
Optimists try to better understand and improve their financial health in several ways, including through discussion.
Talking about money has long been considered taboo. However, optimists try to see past all that. They acknowledge the initial discomfort that comes with discussing finances, but they don’t let it stop them from talking things through with friends, family and experts.
Opting for open communication with trusted individuals can lead to improved financial health. (And it’s an easy first step you can take while staying home.)
76% of optimists are comfortable talking about their money.
Practice Taking the Taboo out of money
1. Get Smart(er)
2. Pick a Money Buddy
3. Talk Money with Your Partner
2. Seek progress, not perfection
Optimists will make an effort to celebrate reaching every goal, no matter how small.
Optimists aren’t perfect and they don’t try to be. Instead, they strive for progress.
Perfectionists, on the other hand, find it difficult to tolerate mistakes. The fear of failure can be so paralyzing that people get stuck in place. Big goals can overwhelm, but when you break them down into baby steps, it will all feel a lot more manageable.
When you choose progress over perfection and celebrate the small victories, you’re far more likely to reach your financial goals.
Nearly 60% of financial optimists feel confident about their personal finances because they recognize that there is victory in progress, no matter how small.
Practice Seeking Progress, Not Perfection
4. Figure Out Where You Want to Go
5. Make a Plan
6. Recognize Tiny Victories
3. Expect the Unexpected
Optimists learn from the past to prepare for the future.
Financial setbacks are normal and happen to all of us. A positive mindset won’t prevent financial challenges, but optimists try to leverage the obstacles that do come as opportunities to learn and be better prepared for next time.
Frost research found that feeling secure can have a huge psychological impact.
When you feel like you’re prepared, you become less fearful of the future. Plus, you’ll free up time and mental space for taking productive action.
69% of optimists say that they have a plan in place to deal with financial setbacks, which allows them to feel more confident in their ability to recover.
Practice Expecting the Unexpected
7. Learn from Past Setbacks
8. Start Saving
9. Establish a Support System
Ready to make a game plan?
Frost is ready and willing to help. We have products and services available—no matter where you are on your financial journey or what your goals are.