A low-risk high pay off attitude you need to adopt is practising good financial habits. The sooner you start following these financial tips, the better as it is never too late to change your financial habits.
And if you’re looking for financial tips to start with, then you’ve come to the right place. Whether you’re looking to steer your spending habits in the right direction for a more secure future or looking to save enough money for a down payment on a large purchase like a car or house, here are a few tips that will help you get started.
To help you manage your money better, here are a few tips for your personal finance that you can also apply to your family’s budget.
Picture this; you step into a store, find this cool looking, limited edition snow globe. You think about how cool it would look on your shelf, and how it can start conversations when you have guests over. It’s enticing, the blizzard that happens when you shake it is mesmerising. So, you quickly purchase it.
Congratulations, you have just made an impulse buy. Impulse buying is finding a cool item at a store, and buying it without much thought about the consequences. But don’t worry, just about everyone is guilty of this.
Now, an occasional impulse purchase is okay, but it becomes a problem when you do it every time you step into a store, it can cost you a few hundred dollars every month. Here are a few disadvantages:
Let’s go back to the store. You pick up a cool looking, limited edition snow globe. You think about how cool it would look on your shelf, and how it can start conversations when you have guests over. It’s enticing, the blizzard that happens when you shake it is mesmerising. But you put it down and step out of the store because the money you currently have is just enough for your groceries.
For some people, handling money can be overwhelming. Some people don’t even try to allocate money for their necessities and will wing it. Now, if you have an unlimited supply of money, or if you’re earning so much money that you don’t need to think about it, you will be living the dream.
But that’s just a dream. In reality, you earn just enough money to get by which is why a budget can come in handy.
However you choose to do your budget, the goal should be the same: allocate the right amount of money for all your needs. That means assigning cash for bills, savings, everyday expenses, and allowance for your kids. There are plenty of ways to create a budget:
Once you create a budget, make sure to follow it and never stray from it unless it’s an emergency like car repairs, replacing household appliances like your washing machine. But then again, if you beefed up your savings enough, emergency expenses will not be a problem.
Grocery shopping is a fun activity. It’s a chance for you to stock up on food, and other supplies. But when you’re working with a budget, you need to watch out for item prices so that you don’t go over budget, and don’t shop for too much. Here are a few ways to stick to your grocery budget.
Stock up your fridge just enough to make sure you and your family have enough until you need to go grocery shopping again. If you have kids that want treats at the grocery store, make them earn it by allowing them to do small chores around the house. It teaches them responsibility, and you will have a cleaner home. A win-win situation!
Redundant spending is essentially spending twice on a service. A good example is paying for a streaming service like Netflix and cable TV.
The only way to combat this is to take the time to list the services you are currently paying for, and cancel subscriptions that you no longer need.
When you cancel subscriptions to certain services, especially those that you are hardly using, you will see that your income has been freed up, and you can now use the money for other things like paying off your bills, adding it to your weekly budget, or be able to afford more groceries for your home.
They say that you don’t appreciate something until it is gone. That is why you need to maintain the appliances and other things you have in your home to avoid the need to replace them prematurely. Here are a few ways:
Prevention is better than cure, and if you take care of your appliances, they will take good care of you and save you more money in the long run.
As mentioned above, accessing your bank accounts have never been easier. So, make it a point to make regular deposits to your bank account. Building your savings can go a long way. Decide on how much you want to put into your savings, and commit to putting it away. You can automate your bank account to transfer funds to your savings, or you can do it manually.
Breaking the habit of spending more than you should is a challenge worth facing. Once you overcome it and practice healthier financial habits, everything else becomes a little bit easier. Try these tips for yourself and remember to do it every day.
A benefit of following these financial tips is being able to enjoy a good credit standing, making it a lot easier to get approved for things like car finance, allowing you to get a car for everyday use.
If you are suffering from bad credit, car finance can help you rebuild it. Consider getting a bad credit car finance if you need a car and have trouble getting approved for a regular car loan.