Financial success is 10% strategy, and 90% behavior. Whether your income is $30,000 or $30,000,000, modifying your behavior with the help of these tips can save you boat loads of money and stress.
1. Use Cash
Psychologically, it’s harder to spend cash than it is to swipe a card. Decide how much money you want to spend per week on groceries, entertainment, shopping, etc. and pull that amount out of the bank at the beginning of the week. Once it’s gone, it’s gone. You’ll find yourself thinking twice about every purchase because you’ve set a tangible limit for yourself. This is much harder to do when you swipe the card for everything.
2. Pay attention
You know yourself better than anyone – learn to leverage this. Don’t sleep on the power of simply acknowledging your thoughts, feelings, and emotions in money related situations. Taking a moment to audit your current state of affairs before making a purchase, committing to a trip with friends, of making a big life decision is absolutely essential. As my Dad always says – “Measure twice, cut once”.
3. Pay for things as you buy them
Never open a tab at the bar, or run your credit card up with things outside of monthly bills. Force yourself to pay for everything that you buy as you make the purchases. This will help you better understand how your money “just disappears” every time you participate in certain activities.
4. Check your bank account balance every day
There is nothing more displeasing than watching you bank account whittle away to nothing at the expense of shopping sprees, Starbucks coffee, and bar bills. Force yourself to look at the balances every day. Don’t ignore your bad habits – exploit them so that you can address them.
5. Find accountability
If you tell the people closest to you how much money you plan to spend on certain things, or how much you need to save to reach certain goals, you will feel a sense of accountability to someone other than yourself. Believe it or not, the number one thing holding most people back financially is their ability to justify poor decisions to themselves. Justifying a decision to someone you love is much tougher, which generally leads to better decision making in the first place.
6. Reward yourself
When you meet certain goals, or successfully make a big change in your behavior, reward yourself! If you you’re hard on yourself, or go overboard with making significant changes to your life without reward, you’ll become fatigued with the process and eventually revert to old habits. Decide how you plan to reward yourself for certain milestones ahead of time, and treat yourself when you hit them – you earned it.
If you’re looking for some help, or want someone to confirm that you are doing everything you can to reach your goals, check us out at TruWealth Planning and schedule a free intro consultation.