Let’s get started on getting you financially on track through these 10 simple steps!
1. Make Your Wallet Your Friend: This in essence means that you should be speaking to your wallet not at it on a daily basis. You speak at your wallet when you expect it to provide financial answers to your daily needs-i.e coffee, tickets, shopping etc. Your wallet is your friend for life-so let it be your compass for indicating where and on what items you can and cannot afford-this will save you time, energy and effort.
2. Become Financially Fluent: Learn to speak the language of finance-this happens when you spend time investigating your finances. This will also enable you to better communicate with your wallet. There is a language behind every financial success and failure. What is the language behind yours? Where do you spend money? As a matter of fact-how do you spend money?
3. Divide and Conquer: What are your wants as opposed to your needs. Your needs must be attended to while your wants can wait. Your needs are priority like shelter, food and clothes but they become wants when there is surplus-i.e you decide to order take away on a daily basis instead of cooking your meals or having a meal prep plan if you work late. The problem here begins when we see our wants as our needs and the issue is our wants get us into a financial fix. But practice makes perfect. So when you have that urge for burgers-go to the grocery store and buy the ingredients to make it yourself. Google is your friend if you don’t know how. This not only enables you to become more conversant with your needs but it enables you to mature in your wants. For instance you need a coat but do you need it in different shades? Of course not! When you make your finances your friend, you begin to understand where your financial triggers are. And this allows you to develop self-control which means you let your wallet do the walking which means your wallet begins to lead you into where your finances are worth the investment so you don’t waste your money or your time.
4. Carry Cash: I like to call credit cards the “cradle of debt” because this is usually where it begins. This is because when you spend money you can’t see, you spend money you don’t have. The problem here is it makes you financially blind and unaware of your expenses. When you have cash-you are reminded each time you dip into your wallet of your financial situation. It is a constant reminder that you do not have money to spend that you do not have which in turn makes you more careful with your finances.
5. The Sale Struggle: Just because there is a sale going on at your favorite clothing store, does not mean you have to break the bank. Make a list of the items you need not the items you want. Another tip is to give yourself a limit on the items you want if there is room for such an indulgence this way you are constantly accessing your finances from a logical rather than an emotional vantage point. I like to say money speaks fast because where your money is, is where your mind is so if your mind is on that jacket and the different occasions-mind you occasions-you can wear it, your money will quickly talk you into a financial pit.
6. Treat Yo. Self-This may sound counter intuitive but you have to learn to invest where you can experience financial comfort without breaking the bank-this may include saving to spend on a spa treat once a month, ordering in once a week/month depending on your budget-but the goal here is to reward yourself for your financial independent strides.
7. Save Space-Learn to save space for future constraints. Teach yourself the art of saving money-make a note to try and save money each week that would not be spent on any other area but towards a future desire. This will give you a reason to save and the mindset to sustain you through the process of saving. Make that future desire flexible so you can also learn to adapt your saving strategy as you grow over time.
8. Cut Costs Where You Can- Make lunch instead of buying lunch. Wait till there is a sale to purchase those shoes you don’t need for this present season. Look for discount items in the store that you need. Make your own coffee and take it to work instead of going to a coffee shop. This will also help you assess your finances consistently, which in turn makes you better as practice makes perfect.
9. Save To Serve- This is a concept that I invented-it means where can you serve your audience and save for yourself? For instance, your business might be more valuable/cheaper online than a physical store, which saves you money and could also serve your audience better as it may make purchases easier, they can view items faster and they can also share with their friends! This is a save to serve mindset-you put your money where your mouth is-you save money where it least benefits your audience in terms of service and you invest money where you can both get a financial return on your investment.
These steps will enable you to better access your spending and splurging habits!