With Christmas and New Year’s Eve coming and going, you might find yourself in need of a change this 2020. Sure, we all make new year resolutions that we fail to stick to, but that should not stop you from trying again. One of the things we promise to do every year is to be more financially disciplined.
If you are someone who finds it difficult to control your spending habits, then we have compiled a list of all the tips and tricks you will need this year to finally become more financially responsible.
Do not be hard on yourself
First and foremost, we all make mistakes, especially when it comes to money. According to an article from DyerNews, even people who are financially responsible face some difficulties every now and then. Thus, there is no point in beating yourself up over every small mistake you have made before. It does not mean that you will never be financially disciplined just because you were not that way last year. This year is a clean slate, and you should treat it as such.
Chances are that you are not Tony-Stark rich, and you need to face this fact. You should not delude yourself that you have enough money to get everything you need. So, basically, live within your means. If you earn $2,000 a month, you should make a plan to not spend more than $1,500. This will prove better in the long term because you will not go over your budget and have some extra cash as well.
Set a budget
I know, being an adult is all fun and games until you have to actually sit down and set a monthly budget. This allows you not to overspend and have a clear picture of your priorities. Sometimes, you might want to buy something extra and you splurge on it without sparing it a second thought. In such cases, carrying a paper with your budget printed on it around with your budget will greatly help you. You can carry it around when you shop to remind yourself of your spending goals.
Focus on the essentials
Ever heard of the minimalist lifestyle? Well, it means that you should only buy the essential things you need. So, no more eating out if you can have a hot, home-cooked meal. We know that sometimes we are too busy or too tired to cook, and that is absolutely normal. However, you should not make a habit of wasting your hard-earned money on fast food and other non-essentials. You can find videos online of people who talk about their experience with the minimalist lifestyle. You will find it empowering that they have saved a lot just because they let go of unimportant products and focused on what they truly need.
Find the best deals
Before you buy that item that you have been dying to have for a few months, ask yourself if it is the best value for money. Take a moment to check the same product in other physical and online stores because you will find competitive deals. It might take some time and effort, but it will be worth it when you purchase your desired item and save some money all at the same time.
Pay your taxes and bills
This goes without saying, but before you buy that lovely sweater you want, you should pay your bills first. Fulfilling your financial obligations before buying whatever your heart desires will make you more disciplined. This will spare you the headache of being short on money and having no electricity because you forgot to pay the bill. Also, do not forget to calculate your taxes and pay them on time.
Do not get loans
Loans are great in a pinch, but you should not get loans to maintain your unhealthy spending habits. This will pose bigger problems in the future if you cannot pay the loan back. Moreover, you should not ask your relatives or friends for money because you will put them on the spot. Just focus on being responsible with your own money first.
Save for emergencies
We like to think that we are invincible, but sometimes fate has other plans. You should always put some money aside for any emergencies. Such emergencies do not have to involve you personally, as sometimes you might find your friends or family in dire need of extra funds. It is always smart to have some money around in case anything happens.
A new year means a new you; this means it is your time to shine and become more financially disciplined. Regardless of your age and income, the above tips will help you lead a better life and control your spending habits. You just need to find the enthusiasm and will to change your life for the better.