Are you tired of being broke? Would you like to finally see a comma in your checking and savings accounts? Until the government figures out how to solve the income inequality crisis, here are some tips I use to help me stay on track with my financial goals.
These tips will work no matter if you’re making minimum wage or bring home a six figure salary. How do I know? Because these are tips that help you exercise control over your finances. Part of the secret to building wealth when you’re working with a fixed income is in how you spend the money you do have. It can be hard making a dollar out of fifteen cents, but even harder if you’re not being conscious of how you’re spending your coins. These tips will help you come face to face with your spending habits and make adjustments that will benefit you in the long run.
- Switch to cash. It’s easy to lose track of card swipes, but hard to ignore the feeling of breaking a twenty dollar bill. Sticking to cash helps you be more aware of exactly how much you’re spending because unlike with your bank account, you can’t wait until later to check the damage you did. Your empty wallet will remind you instantly.
- Stack it, don’t spend it. Shed the ‘I’ll get paid again’ mindset that you use to rationalize impulse spending. Say no to things you WANT but don’t NEED, and say yes to the extra money in your savings! Long term benefits outweigh instant gratification, remind yourself of this when you find yourself wanting to spend frivolously. Stack your money, you’ll thank yourself later!
- Set up a flexible monthly budget, and stick to it! Outlining your usual expenses helps you to be mindful of how much extra “spending” (or possible saving) money you have to work with so you don’t spend beyond your means.
- There’s food at home! Cut back on the amount of money you spend on outside food and I promise you’ll notice the difference. Spend money on groceries and take food from home for lunch. Saving $10-20 daily adds up real quick! Also, eating food from home allows you to make healthier meal choices for less! (Ex: Buying a couple packs of frozen veggies for $5 vs $10-$15 on one salad).
- Be disciplined and consistent. If your spending habits are as erratic as your moods are, you are dooming yourself to a life of financial instability. Reaching your wealth goals will require you to learn to say ‘no’ and make smart choices. Once you make a habit out of exercising control and using proper judgment, it will be easier to stick to the budgets that will help your accounts flourish.
These aren’t get rich quick schemes, but incorporating these tips into your habits (if you don’t use them already) will allow you to reach new levels of financial security with the amount of money you already earn.
Do you have any tips you use? Feel free to share them in the comments below!
Forever Thugnacious 