New Year Financial Reset
As Rosh Hashanah draws near, many of us reflect on our spiritual growth and look inward to improve for the year ahead. But what about our financial health?
It’s easy to push off money worries, hoping they’ll resolve themselves. Yet many of us feel the weight of financial strain, which makes it difficult to focus on what matters most.
The good news? Change is possible, and it’s never too late to take control; whatever your age, stage or income.
At Mesila, we’ve supported countless individuals and families in turning financial challenges into financial peace of mind. This article offers insights to help you reset your finances.
Assess Your Current Financial Situation
Many people find looking at their finances stressful. However, moving forward is hard if you don’t know where you stand. Are you spending more than you earn? Are you living on the edge of debt without realising it?
Gather your bank statements and bills. This might feel overwhelming, but awareness is the first step toward change. Write down your income and expenses to get a clear picture. If this is too difficult, Mesila can guide you through a Financial Healthcheck.
You’ll feel empowered once you understand your financial situation and that’s when real change can begin.
Set Achievable Financial Goals
Have you ever felt like no matter how hard you work, you just can’t get ahead? Many of our clients felt stuck when they first came to Mesila.
The key to moving forward is setting specific, realistic goals. What do you want to achieve in the next year?
Maybe it’s paying off credit card debt or saving for a holiday.
Your goals should be clear and actionable. For example, instead of saying, “I want to save,” try, “I want to save £300 a month for two years to build an emergency fund.”
Writing it down and keeping your goals visible will help you stay motivated.
Create A Realistic Plan
A financial plan focuses on directing your money toward what truly matters to you. It’s not about cutting everything out.
Once you understand your spending, you may realise that you have forgotten about expenses that no longer serve you, or you might identify costs that can easily be reduced. When some clients first start Mesila financial coaching, they don’t know how much they’re spending each month.
Benny and Rivka* came to us feeling stuck. Despite having good jobs, they ended every month in a deficit and couldn’t save. With Mesila’s guidance, they built a simple plan and made small lifestyle changes. After just one month, they managed to end the month with a positive balance!
You don’t have to change everything overnight. Start small, create a plan and gradually move in the right direction.
Manage Debt Head-On
Mishlei tells us, “The borrower is a servant to the lender,” and many of us know what that feels like. Debt, ranging from small overdrafts to thousands in credit card loans, can limit your freedom and peace of mind. You’ll be relieved to know that you can significantly reduce or eliminate it with the right plan.
Consider paying off high-interest debts first, while making minimum payments on lower-interest ones. It’s a process that takes time and persistence, but each step brings you closer to financial freedom.
Establish A Savings Routine
You may feel that saving is impossible right now. But even small, consistent savings can make a significant impact.
Rabbi Akiva once saw drops of water slowly wear away a stone. If soft water can change a hard rock, he reasoned, small, steady efforts can transform a person’s heart. The same principle applies to your finances where even saving the smallest amounts regularly can create powerful results over time.
When Avraham and Chaya’s* daughter was born, they started saving £50 a month for her future wedding. After 19 years, they had saved a substantial sum of £17,500 to put towards the chasuna. Having this money set aside made the wedding planning simchadik and stress-free.
Set up an automatic transfer to your savings account to be paid each month like you would for an essential bill. Even small amounts will give you peace of mind, knowing you’re building a safety net for the future.
Rosh Hashanah 5785: Renewed Financial Path
This Rosh Hashanah, take small, meaningful steps toward financial stability. At Mesila, we’re here to help you with everything from setting goals to creating a plan that fits your life.
May this new year bring you success and abundant blessings in both your spiritual and financial life.
*Names changed
