It doesn’t matter what kind of situation you are in or how old you are, it is likely that your money is tight. Whether that be because you are starting a family, starting a business, or have recently finished college, chances are it’s hard to save. Education is expensive. So is creating opportunities for children, as is building a business. Looking after your money does not always involve understanding how much money you are getting, or what expenses you may have.
Managing your money well is really about how you go about saving and spending it. It is also about your attitude when it comes to sharing resources with other people. Do you enjoy giving to other people? Do you prefer to hold back because it is safer, or are you okay to share what you have? We will now have a look at a few reasons of why people can get into debt. We will also discuss a few tips and ideas of how you can manage your money better, and keep it in your bank.
10. You Have Not Yet Learned That Saving Money Is About Creating New Emotional Habits And New Attitudes
Saving money is really about creating new habits and attitudes. The reality is, that it has nothing to do with how much money you have sitting in your account. Sure, you can save a certain amount of money each month, but if you are always spending more than what you should be, then you will actually end up borrowing from yourself.
As a result, you will have saved nothing. Instead of believing that money is valuable, think about what it will get you in terms of your goals and plans. Develop an attitude where you consider that all things in life is about heading toward your goals. Those who have a lot of money actually see money as an asset or tool. This asset or tool is designed to assist them in investing in both their goals and dreams. To them, money does not have to be protected at all times. Neither is it something scarce.
9. You Have Not Decided What Your Values Are And What Is Important To You
Think about the things that you value. Would you like to be remembered for anything? Money is a resource. Resources can sometimes be used unwisely. They can also be wasted.
Once you know what your values are, you will then be able to work out how your money can be spent. If you have a particular hobby, then perhaps you can invest some money into that. If you are unsure what you value, try writing down a personal mission statement. This is sure to help you.
8. You Don’t Have A Simple Budget System In Place
If you know that you are in debt right now, then create a simple budget tool. These can be found online, or you can write it all down in a notepad. If you have a credit card that needs to be paid off, then come up with a plan for this.
Debts will not go away on their own. Discover what your spending habits are and decide whether or not you can actually afford these items
7. You Usually Buy Instead Of Borrowing Or Renting
If you are digging up a plant, why buy a shovel? It is much easier and cheaper to borrow one from someone you know. If you need a large saucepan, ask a friend or relative if you can borrow theirs.
We all think that something we buy will come in handy for another occasion. Are you actually going to use it again? Books and movies can also be borrowed or rented. Rather than buy, try borrowing or renting instead.
6. You Give In Too Easily To Get Rich Quick Ideas
These ideas really are a failure. They are not a success. Never assume that you will win the lottery or some other cash give-away. It is better to create value that will last.
In return, your efforts will be rewarded. Whilst moving up in a career, or developing a business takes time and effort, you will eventually reap the rewards. Real wealth takes time.
5. You Have Bad Money Habits
Where does your money really go? What do you do on a regular basis that requires you to spend? If you are spending way too much money on gambling, drinking, smoking or other bad habits, then it is time to change.
Splurging on expensive clothes and unnecessary entertainment items is also something you could break out of. Instead, try hitting up a local thrift store for clothes and think twice about whether you really will play that new Wii game more than once.
4. Credit Cards Used To Purchase Items When No Cash Is Available
If you do not have the money in cash right now, do not purchase things with your credit card. Pure and simple. If you have important purchases, then come up with a savings and payment plan. Never go into debt that you cannot get out of. Never borrow money unless you really have to.
Though credit cards are extremely convenient, they’re also dangerous. They give you the impression you have money to spend when really you don’t. If you don’t have any cash on hand, put smaller purchases on your debit card rather than on your credit card.
3. You Pay The Retail Price On Everything You Purchase
Most retail stores have sales every so often. You can also get good deals whilst shopping on the internet. Charity stores also sell things cheaply and the same goes for used cars. Secondhand cars can be just as good as brand new ones.
But make sure that when you are buying things on sale, it’s because you need those items and not simply because they are on sale. You want to have the satisfaction of having bought something you really needed for half the regular price instead of the annoyance of having bought a bunch of useless items strictly because they had a sale tag on them.
2. You Pay More For Brands Or Labels
A lot of clothes can be basically exactly the same, the only difference being the label or brand. One is more expensive than the other simply because it’s Gucci or Lululemon. Do you really care about being seen wearing a particular brand? What is the purpose in all this?
And if brand is important to you, as some labels do produce higher quality clothing, check out secondhand and thrift stores as mentioned above. You’ll be surprised by how many top-name brands end up in these shops in still decent quality for a fraction of the retail price.
1. You Worry About Today, But Forget About Tomorrow
Whilst we have many experiences in life, money can actually be put away and saved for the future. Retirement should also be saved for. Think about what your money can create for you in the long run.
Consider your long-term life goals and start saving while you can. Even setting aside $20 per paycheck will help build up some savings for your future.
Sourced from: LIFE HACK
Photo: Thinkstock/Ron Chapple Stock
