By: Raymond James
About the Author:
Ray is a sought after thought leader and an expert in financial and money management. He has been published and featured in over 50 leading sites and aims to contribute articles to help novice financial planners. One of his goals is to impart his knowledge in finance to educate and help ordinary people create and achieve their financial goals.
Personal finance is one of our main concerns in life. Our spending habits are behavioral, and we make some good and bad decisions when it comes to spending money. We can manage our finances a little bit better by tweaking some of our daily habits, and it will help us move towards greater peace of mind and better financial stability. There are some great “hacks” to create a healthier relationship with our money.
- Stick to a budget
A lot of times it’s not that we don’t have enough money. Instead, it’s spending too much of what we earn. You’d be surprised how much your daily coffee runs and fast-food outings for lunch add up for the month. A simple budget will hold you accountable and help you remain consistent. You can have the occasional “splurge” once in a while, but be mindful of where your money is going. Adjust your habits if necessary, and set savings goals that are realistic.
- Start Investing Now
It’s never too late to start investing your money. Professionals from NorthEastWealth Financial Planner Melbourne can help set you up for the future. Your money will grow at an exponential rate when you invest because it will earn interest longer, benefitting from market gains. Investing a portion of your income also allows you to develop better spending habits, and create a substantial nest egg for the future.
- Be Careful with Credit
Credit cards should only be used in an emergency, and you should only charge what you can pay off in a reasonable time frame. Always make sure to pay your bills on time each month. You’ll avoid late fees and boost your credit at the same time. Use the “snowball” method to pay off your debts. This method means that you pay off the smallest credit card debt first and go in ascending order until the most substantial amount is paid off. It’s good to get into the habit of checking your credit report often. With better credit, you’ll qualify for better loan terms, which means more money coming into your pocket.
- Try a Fiscal Fast
What exactly is a fiscal fast? It’s a length of time not to spend money for a specified time. You can choose a specific category, like restaurants, or not buying clothing. You could challenge yourself and not buy anything other than essentials for an entire month. Fiscal fasting is challenging, but it adds up to significant chunks of cash when you are done. You can take your savings and invest it in a high-yield savings account or use it to go on your next vacation. Instead of going out to shop, you can spend time decluttering, donate, or repurpose what you already have.
- Spend More Time Outdoors
In an age where we are addicted to electronic devices and online shopping, spending more time outside is an excellent alternative to unnecessary spending. Not only is it healthy for you, but it’s cheap! Nothing beats fresh air, being in the sun, and being surrounded by your friends and family. Some of the simplest things in life can give us the most enjoyment. Set aside time every week, so that it becomes a routine, and watch your money start to pile up.
- Keep an Inventory on Your Groceries
Buying food that you don’t need is a waste of money. Your grocery bill is probably your most significant expense every month, and tracking what you have will help you allocate more money to your financial goals. It’s hard to keep track of the ten boxes of cereal or extra cans of soup that you have in your pantry. You can make meals from what you have, and it will prevent you from throwing away food that expired. Keep a simple list on your phone or write it down on a magnetic dry erase board on your fridge.
When you worry less about your money, you can live your life to the fullest. “Hacks” allow you to create positive spending habits for a lifetime, and you’ll have greater peace of mind knowing that your future is secure.