Not everyone is born with an excellent sense of budgeting. It’s an acquired skill, and if you’re not blessed with it, don’t fret because you can still fix your habits to steer yourself in the right path. And here are five ways that can help you set your bad money habits.
Before you can find a way to solve your problem, the first step is to figure out how you came to have your current money handling skills.
We learn how to handle our money as children. We see how our parents spend their money, and from that, we get a good sense of how things are done.
So, if your parents spent money like it was nothing, you will most likely be the same. But if your parents were more frugal and had a better idea how and where to put their money, then you might be lucky enough to learn from them.
Now that you know the history of your spending habits take a second to reflect and consider how you have been using your money.
Are your bills higher than your income? Have you been able to keep tabs on your money as it goes in and out? Do you make impulsive purchases that you don’t end up using and it sits in your closet gathering dust?
If you answered yes to any of those questions, then you have just found the problem. You can’t start your savings if you don’t have the sufficient income or budgeting capacity for one.
This is the time you have to decide within yourself that you want to change. And here are the first steps towards a better financial future:
Just saving your money is daunting. To help motivate yourself to save money, have a goal in mind. You can save up for that new gaming console you’ve had your eye on for the past year, or you can even start the savings for a down payment of a new car to replace your old one.
You can put that goal where you can always see it, like in your work area or even inside your wallet. So, that every time you open your wallet to take out some money or your credit card, you can remind yourself of your money goals and think about if you should spend your money or not.
One of the reasons people overspend is because they don’t give themselves a limit. This is where a budget comes into play.
Earlier, we asked you to list down all of the things you need to pay for and allocate the required amount for each. After you’ve subtracted it all from your income, you are left with some money. You can now use this as your budget until next payday.
Do your research and find other ways your money can work for you. Learn about your bank’s investment options, rewards, and other pieces of information on how you can maximise your money power.
Remember, knowing how the banks play their game will give you an advantage and allow you to grow your money over the years, and maybe even let you retire with an amount of money you couldn’t have imagined when you were younger.
Now that you have a better idea on how to overcome your poor spending and money handling habits, you can start to work on getting better with it.
It may take you a while, but deciding that you want this change is the first step. From there, it’s an uphill climb, but the view is fantastic and it dissolves all of your worries. Soon, you will be able to buy anything your heart desires like a new house or a car, and never have to worry about your next monthly payments as much as you do now.