Money seems like it has everything to do with logic and little to do with feelings.

But our emotions can have a pretty big impact on how we deal with our finances.

Gratitude, for example, can affect spending (and even investing) in a big way.

Here’s a first-hand account of how it changed my own financial habits for the better.

The better choice was pretty obvious: delayed gratification literally paid off.

This is all well and good in chart form, but how does it work in real life?

I always considered myself pretty grateful for what I have, even when it hasn’t been much.

And that focus has had impacted my finances in a few ways, primarily with spending.

The Problem With Goals

Goals are great.

Growing up poor, it was always my goal to, basically, not be poor.

I worried, constantly, that I wouldn’t have enough.

Admittedly, that fear worked wonders to get out of debt.

But after a while, fear kept me from enjoying the life I’d built for myself.

I did find a salaried job.

I’d saved for an emergency.

Still, I hoarded my money and stayed in a constant state of worry over losing everything.

This screwed up my finances in a few ways:

I oversaved.

I put too much money in my savings account on pay day, underestimated my expenses, and overdrafted.

I didn’t bother learning about investing because I was too scared of losing money.

I never asked for a raise.

I was scared my boss would yell at me.

Fear and finances is a whole other topic, though.

I was too focused on the lack and the what-ifs.

Focus on the Future

Obsessing over goals isn’t always a fear-driven thing.

Sometimes, you just want more for yourself.

And it was great to have aspirations.

But we’ve written before about how it’s actually better to focus on theprocess instead.

To put it in corny terms, it’s about the journey, not the destination.

You might say: sure, that mindset is great philosophically, but how does it affect your finances?

First, focusing on the process can actually make you more productive.

You’re dealing with the tangible present rather than the abstract future.

This can make you a betterproblem solver.

There’s evidence that focusing on the present, rather than the future, also leads tobetter saving.

And it makes sense.

When you’re focused on the present, your financial decisions are more concrete.

Here’s an example: for years, I didn’t invest or save for retirement.

My future goals included finding a job that paid me a crap-ton of money.

So I figured I’d worry about those things then.

Consumer Mentality

Because I chose the future over the present, I always chased the proverbial carrot.

I wanted; I was a consumer.

I wasn’t unhappy, but I was dissatisfied.

And subconsciously, I felt a bigger apartment or a better wardrobe could help feed some of that dissatisfaction.

Really, that’s how lifestyle inflation gets you.

You watch HGTV for 5 hours straight and think, “I want to buy a home someday.

Let me browse Trulia.

Okay, I can’t afford this.

But Icanafford a trip to IKEA!”

And really, there’s nothing inherently wrong with buying crap you don’t need.

But for me, the key word wasmindless.

I didn’t even consider my spending habits or what was manipulating them.

I had more money to save.

I invested better and began to max out my IRA.

I became a more engaged (and therefore more valuable) worker.

But changing your mindset is a hell of a lot easier said than done.

For a while, I tried, but nothing really changed.

I kept agratitude journal.

I read about, and used, methods to stopimpulsive spending.

There were a few things that made all the difference though.

My Biggest Financial Fear Was Realized

I lost my job.

This has always been one of my biggest financial fears, and it happened.

I went through the typical stages of grief.

I had an emergency fund.

My fear-driven past had paid off and served its purpose.

I wasn’t nearly as stressed as I would’ve been without this.

My job does not define me.

I lost it, yet I still existed.

My job loss didn’t happen “for a reason.”

It happened because, simply, shit happens.

For a lot of people in this world, “shit happens” means misery and suffering.

I didn’t have much control over this impetus, but there were other ways I shifted focus.

I Made Shorter-Term Goals

I read our own Thorin Kloskowski’s piece about having ahierarchy of goals.

I like the idea of having smaller, immediate goals that are influenced by our overall life goals.

This takes something abstract and makes it actionable.

It’s a great way to link your future self with your present self.

We often budget for a “perfect future self,” for example.

So I applied Thorin’s post to my own weekly task list.

I started making short-term goals based on my larger ones.

And I adjust the time frame and amount as necessary.

I didn’t realize it at the time, but I usedthe same methodwhen I paid of my debt.

It’s just aboutsetting smaller milestones.

Allowing myself to achieve something in the short-term makes me happy.

It makes me thankful for my accomplishment.

It makes me realize I’m already living my goalsI’m focused on the journey.

I Practiced Conscious Consumption

Being a conscious consumer basically means being frugal.

Clothing is not something I love enough to spend extravagantly on, but travel is.

Being aware of this helps me make better spending decisions.

There are all sorts of tips on how to practice being a more mindful consumer.

How well they work depends on the person.

Working with something tangible helps me think more about what I’m buying.

Learning my consumer triggers was also helpful.

I thought about the things that made me want to consume.

HGTV was a big one.

The Marshall’s near my apartment doesn’t help.

There are still things in my life I wish were different.

I still have plenty of goals I’m working on, financially and otherwise.

In the meantime, being grateful for the present has really helped to improve my spending habits.

And, more importantly, it’s made me a more satisfied personal overall.

Photos byk rupp,Stefan NeuwegerandSebastiaan ter Burg.