Spend Less, Save More, Enjoy Financial Peace
Being financially healthy involves keeping your incoming finances greater than what goes out. It is about staying on top of the details, and balancing everything well. Here are 10 tips to assist you in spending less money than you earn, for a more secure future.
1. Create a plan and stick to it. Without a plan, you are doomed to fail your financial “diet”, just as you would have trouble losing weight if you refused to monitor your food and exercise. In the case of finances, the money that goes out must come in from somewhere, or you will end up severely in debt. Create a budget and do your best to follow it.
2. Stop procrastinating when it comes to dealing with financial issues. It may be less stressful at first to put off working through your financial situation, but you will have even greater stress in the long run. Deal with it now, for your own good.
3. Put your credit card into storage. Some people recommend freezing your credit card, or even cutting it up and getting rid of it altogether. As long as you have it somewhere that is inconvenient to access it, this step will go a long way in helping you recover financially.
4. Get rid of your debt as soon as possible. If you have loans or credit card companies to pay back, do so now. Formulate a plan to pay off your debt as soon as possible, because neglecting this one area will prevent you from achieving your goal of spending less than you earn.
5. Create extra income. You might consider getting a second job to bring in more income. Or perhaps you have an idea brewing in your mind that could be a profitable business venture. Either way, get on your feet and start bringing in some more money.
6. Cut expenses whenever possible. Do you really need that designer winter jacket? Or could you settle for a good quality, but less expensive brand? Making little decisions to save money can add up in the long run.
7. Quit the impulse buying. Don’t go to the store when you are hungry or you will always buy more than you need. Don’t allow yourself to make purchases when you see them for the first time, or you will begin to crave the adrenaline rush of shopping. Put the item back on the shelf and think about it for at least 2 days before making a decision.
8. Drop some of your frivolous expenses. Whether you are a member at a high-end gym in town, get a weekly manicure, or drive a car with monthly payments so high that it puts you under constant stress, just stop. Frivolous expenses will drain your wallet more quickly than you can imagine.
9. Decide whether your savings are actually helping you save. Have you taken a look at your bank account lately? Are you currently paying more in bank fees than you are receiving in interest? Is your savings account earning you mere pennies per month? Ask your banker for options, or find another bank if necessary.
10. Make saving an automatic habit. For every check you receive, automatically save a certain amount without fail. If you set up an automatic transfer, you won’t even think about the money you could have spent.
Spending less than you earn takes skill and knowledge. There are many ways to help yourself achieve this goal. Start now, and you will reap lifelong rewards.