It may be impossible to right our wrongs, but it is possible to create good habits that can boost your finances in all the right ways. Change doesn't happen overnight but starting with these small habits can help you make sense of your money.
Switching the way you think about money
Money is something that can either work for you or against you. It all starts with how you think about your current finances. A small habit that can make a big impact is curbing impulse spending without turning into a scrooge.
Have a budget set for every expense you make throughout the month, splitting it from needs and wants. Go through your expenses and assess if you really need the items that you have budgeted for or if there are affordable options that you can switch to.
When it comes to spending on clothes, entertainment and gadgets this question can come in handy. You can also assess whether you need an item or not based on how it will enhance your life.
Cutting back on these small expenses means more money stays in your pocket instead of going out. Remember to stay away from places, situations or sites that can trigger you into spending on things you did not budget for.
Debit orders, taxes, and debt are like Weet-Bix and milk when it comes to our income, soaking it up in a flash. Making our finances stretch to cover savings, retirement annuity funds and investments seems like a far stretch. But there is a way in which you can reach your financial goals and build wealth without having to strain your finances.
Tackling giants always starts with small steps. It's important to pay yourself first. What this means is splitting your income to cover any financial goals you may have. Make sure that you speak to a financial advisor to help you set a realistic target when it comes to putting money away for investments, retirement and life insurance.
After you have paid towards these important financial goals, you can focus on paying your bills, taxes and other debit orders then use what is left to spend on other things. Remember to start off small and gradually increase the amount you put towards financial products/commitments. Doing this in one fell swoop can be overwhelming and cause you to ditch all attempts to better your finances.
Track your spending
Small purchases or 'treat yourself' purchases are the undoing of many budgets. However, planning your expenses for the week can help you curb impulse purchases or purchases you can never catch up on.
Have a set amount that you can afford to spend for each week or day and stick to it. Carrying cash can make it easier, but be careful when doing this. Instead of making small purchases on items such as snacks, data, or airtime opt to purchase these in bulk so that it works out cheaper and lasts you longer.
At the end of each day or week calculate how much you have actually spent to see if you have exceeded or kept within your budget. Doing this is a great way to help track what triggers your spending finger and when you are winning. It will take time, but eventually, you will get the hang of tracking your spending and walking away from the isle of temptation.