Managing finances can be challenging when you don’t have a lot of extra cash. It’s easy to find yourself spending money, not saving it, and struggling to pay your bills. But there are steps you can take to stay on the right track with your finances, which will help give you a sense of financial stability and independence from your current situation.
The following post will provide some helpful tips for anyone looking to improve their finances.
1. Do You Really Need That Item?
We can be pretty good at convincing ourselves we need something when in reality, we just want it.
Can you go another month without it? 6 months? A year or more? Getting honest about what we truly need and what we can live without can make a big difference in spending.
2. Track Your Spending
The easiest way to keep track of your spending is to use a budgeting app like YNAB. By tracking your expenses, you can see where you’re spending most of your money and where you can cut back. Often, we don’t even realize where we’re spending money!
Check out this previous blog post for some of our favourite budgeting apps.
3. Shop with A Game Plan
Make a list, and stick to it. Whether it’s groceries, weekend errands, or supplies for the camping trip – if you make a list of what you need ahead of time you’re less likely to spend on ‘extras’.
Knowing what you need ahead of time can also help you find coupons or sales.
4. Use A Cash-Only Method for Spending
There are several reasons for using a cash-only method for spending:
- It will help you stay on track with your spending goals because you can physically see how much cash is coming in and going out.
- It helps you avoid the temptation to buy stuff without an immediate means of payment. This way, you’re forced to decide beforehand whether or not you can afford a purchase and will have time to spare if you can’t afford it.
6. Understand Financial Terms and Options
Understanding the difference between income, savings, debt, investments, and inflation is essential. If you don’t know how these things work, it will be much more difficult for you to handle them. For example, if you don’t know your credit card interest rate is high, you could spend significantly more than intended on interest over time.
Book a call with Steven to chat about your financial goals and make sure you’re ducks are in a row.
7. Work Towards a Goal
Having a goal can help you stay motivated and on-track with your spending! Do you really want to buy that new video game, or would you rather put the money aside for that car you’ve been dreaming about for 6 months?
Having a separate savings account for your goal can help you see your progress and keep you motivated.
Are you curious about how you can best handle your finances to avoid spending too much? If so, book a free consultation with Steven. Taking the time to learn about your finances will help you stay on track in the long run!