Do you know where your money goes each month? Or do you blindly spend it depending on the mood of the day? Do you find yourself buying things you don’t really need, only to regret it after?
The easiest step to get more out of your money is to see where it is going month by month.
You can start today by literally writing down on a piece of paper what you spent on what, you can set up an Excel sheet on your computer to track your expenses day by day or download one of the countless apps which will help you analyze your spending.
If you keep doing this for a while, you will start to notice patterns in your relationship with money, and can consequently slowly work on improving the negative behaviors.
I used to be one of those people who go out to buy coffee, and comes back with a new pair of shoes (and without coffee of course), until I realized that those little distractions were costing me a lot of money every month.
Then I started being more focused and mindful about my spending habits and I quickly noticed my bank balance grow.
It’s ok to let your guard down some times, but if you can apply awareness to your financial life you can drastically benefit from the newfound discipline and eventually reward yourself with things that you actually want to buy! This leads us to point number 2…
Everyone needs motivation to works towards something.
How would you feel about saving money if you knew that every one of those dollars is going to that dream vacation to Italy of yours, or a new boat for your fishing trips, or perhaps your kids’ education?
I am quite sure you would feel more motivated!
That’s why it’s important to set goals, and set them high, so that you can have a clear vision of why you are saving the money that you earned with your hard work, and not just throwing it away mindlessly on everything that briefly catches your interest.
Think long term and you can achieve anything you want. What is something that you’re looking forward to do, to own or to create? And how much does it cost? Simple planning goes a long way, and keeping the goal in mind will motivate you to stay on track and to get started.
Invest In Yourself
“An investment in self-development pays the highest dividends.”
Think of your knowledge and self-education as your biggest asset.
Every dollar you put into books, courses, and workshops that can further your understanding of the world will sooner or later benefit you in very materialistic ways.
As a general rule, you should aim to invest at least 10% of your income in self-development activities.
Start thinking of everything you choose to do as an investment on your future.
This applies to everything you consume from food to information: should you have a cake for dinner or perhaps something more nutritious that will give you more energy? Should you keep watching a mindless TV show or perhaps pick an interesting book of your choice?
As we said previously you can always plan ahead on when, what and how much you want to splurge for yourself, and for the rest of the occasions: stick with whatever is best in the long term.
Seeking out financial advice is also a good investment on you and your future, and if you don’t know where to start you can talk with one of our experts.