Are you struggling with your current financial situation? Do you long to go on vacation, plan for retirement or even, just want the security of having a nest egg tucked away? Virtually everyone today struggles with financial issues.
However, you can transform your relationship with money. No matter what you want, reducing your spending is essential to gaining control over your financial profile. Check out these suggestions to see which you can start implementing today:
1. Put yourself first
This is a secret of the wealthy that many do not realize. While the poor and middle class pay out taxes and bills first, this mental mindset keeps you stuck. However, this does not mean go party and ignore the electric bill. Rather, it means that you should schedule your own retirement and related payments to come out of your check before anything else. This will motivate you to make more money to cover everything else.
2. Know your long-term goals
If you are living week-to-week, you are in a constant cycle of stress. Figure out what you want in the long run and break your goals down into meaningful, doable steps.
3. Always research big-ticket purchases
Large kitchen appliances, vehicles and electronics are some of the most expensive items you are likely to purchase. Rather than impulse purchases, you should research the best time of year, manufacturer and other related data so that you can make an informed purchase. Often, the best time is just prior to the new model launch.
4. Speak with a financial planner
If you are not sure how to fix your financial portfolio, going over it with a professional can help.
5. Pay off debtors
If you are wallowing in debt, putting a purchase on your credit card might not seem like a big deal. However, when you see a zero balance on the statement, that can change!
6. Record your current spending habits
Write down everything that you spend for a month, including coffee shop and internet purchases.
7. Cut unnecessary expenses
Go over that list and figure out where you can cut expenses easily. For instance, if you buy coffee at the local shop each morning, start making your own Tuesday through Friday.
8. Give yourself spending limits
From your weekly food budget, including eating at restaurants and takeout to your clothing purchases, write down a clear dollar limit. For instance, limit yourself to $50 per month on clothes.
9. Stay clear of triggers
If you have difficulty controlling your spending in certain locations, avoid those retail outlets.
10. Make yourself accountable
Ask a friend, sibling or other trusted person to be your accountability partner. In some cases, simply having to admit breaking the rules is sufficient to keep people from spending too much.
11. Avoid distracted shopping
When you are waiting at the doctor’s office, grocery store or other places, do not spend money online. Whether the commercial break during your favorite show or lunch break at work, making mindless purchases is incredibly easy with your smartphone. Give yourself guidelines to prevent this from happening!
12. Wait 24 hours
Very rarely will the item be gone. If you still want it, then maybe it is a good idea.
Start using these habits today to gain control over your financial future!