“Happiness is not in the mere possession of money; it lies in the joy of achievement, in the thrill of creative effort.”
–Franklin D. Roosevelt
A huge part of self-development is taking care of your financial situation. As long as you are staying on top of your money, you can be sure that a lot of other things will fall into place. Most people do a lot of things which are very bad financially, without even being aware of the damage they are doing. It is always a good idea to know what you need to do to stay on top of your finances. With that in mind, let’s take a look at how improving your finances can set you on the right track, starting today.
Steps To Improving Your
Make Budgeting Automatic
You’re probably aware of how essential it is to budget your spending. After all, this is the surest way of staying on top of your finances in general. As long as you are keeping an eye on your spending, you know exactly what your finances are doing, and how much room you have to move around in. If you have trouble staying on top of your budgeting, then it might be a good idea to set it up automatically. You could open a second account, and move across by direct debiting everything you are allowing yourself to spend for the week. This is a powerful way of keeping control of your spending.
Don’t Be Afraid To Treat Yourself
Often, one of the main reasons that we fall behind with our finances is because it feels a little too joyless. If you ever feel this way, it probably means that you are not allowing yourself any luxuries. No matter how dire your place is, there is always something to be gained from treating yourself now and then. If you have something of a soft spot for horse betting, such as, then there is no reason you can’t work it into your budget. Allowing yourself to have fun actually helps you overall, by keeping your stress to a minimum.
Put Aside More Than 10%
We all know that saving money is a vital part of the process. But it is often difficult to figure out exactly how much you should be saving. The truth is, for it to have any particular effect in the long run, you need to make sure you are saving more than 10% of what you bring in. For whatever reason, it is this amount which seems to really make a difference. If you’re unsure about what savings account to use, it is worth seeking professional advice on the matter. In the meantime, just put your money aside in whatever way you can.
Pay With Cash
There is a huge psychological difference between paying with card and paying with cash. When you pay with cash, you get much more of a sense of actually making an exchange of some kind. Conversely, with card you do not have this effect. Therefore, you are likely to spend much less money if you make a point of spending with cash only, or as much as possible. Withdraw a certain amount each week, and only spend that money. You will be surprised at what a difference this really does make to improving your finances.