(maitree rimthong/Pexels) Future Planning
Over the weekend I was thinking about future travel plans. There are so many places that I would love to visit. But, that’s just not feasible if I don’t buckle down and step-up my savings game .
The best place to start saving money is with small, everyday habits . After a while, these habits will become automatic. And, best of all, you’ll be able to save your way into getting whatever you want.
Just remember that this is a process that will take time. Personally, I do really well for a long time—then fall off for a while. Then, I get going again. So far, things have been going smoothly for me after implementing the following 11 simple savings habits. 1. Change your mindset
“Saving money and gaining control of your finances is a mind game before anything else. You can tell people how to save more money but they won’t actually do it without changing their mindset first,” author and finance blogger Amanda Abella told OppLoans .
For most of us, changing our mindset first is essential because what we’ve learned about money is from an outside force.
Personally, I attributed my spending and saving ways to my mom. She saved money all year so that we could alway have a nice vacation every year growing up, and so that we could have a nice Christmas every year—I mean, really nice.
She also made sure that in our large family we had new clothing for school. Five days worth of outfits so that we could rotate those pieces and not have to wear the same thing in a week. If I planned it right, I could mix and match many weeks.
Amanda Abella goes on to say that some of the most common beliefs that influence our relationship with money include: Money doesn’t grow on trees.
It’s impossible to make money in this economy.
I can’t afford this.
Money is the root of all evil.
It’s not possible to profit off your passion.
Affluent individuals are greedy.
You’ll want to get rid of your negative associations with money—especially if they include anything on that list. In order to assess and change your money mindset , Abella says, “write out [your] money story.” She strongly suggests that you’re honest and use actually pen and paper. And, “the sooner you own it, the sooner you can start to heal it.”
To guide you in this exercise, she recommends answering the following questions: What have you been telling yourself about your financial situation?
Where did these stories come from and how have they affected your finances?
What are some of your hidden fears about money?
How has your money story evolved over time? When everything has been written down, review it. Just remember to not be judgmental or too harsh on yourself. It should be lighthearted. Amanda even suggests that you “just laugh at it and move on.”Afterward, you should be able to identify the “stories you may have picked up about money—whether from your parents, your partners, your broke friends, or society as a whole.” But, that doesn’t mean that this has to be your tale.In fact, “you can rewrite your money story any time you want,” she says. Remember, it’s never too late.If you need some more inspiration, I recommend reading the following 10 money mindset books , such as The Automatic Millionaire by David Bach 2. Record your expenses Writing down or recording your expenses is probably not how you want to spend your leisure time. But, keeping a record is essential if you want to reach both your short-tern and long-term savings goals.In a nutshell, you want to keep track of all your expenses. Everything from that cup of coffee you get on the way to work to utility bills should be included. The reason is simple, having the amounts and what you spent your hard earned cash on is concrete proof on how much money you’re spending so that you can trim the fat.For example, maybe you realize that you get takeout every day for lunch. To rectify this, you could start packing your lunch. But, if you’re struggling to figure out which expenses you need to cut ask two simple questions, “what do you need?” and “what you’re ultimately trying to do?”To ensure that your figures are accurate, use bank and credit statements. You could also use spending trackers and budgeting tools like Mint, Personal Capital, You Need a Budget, or Clarity Money. 3. Learn how […]
(maitree rimthong/Pexels) Future Planning