April 14, 2021

How to change the way you think about money

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  • Use a Budget
  • Save Tirelessly
  • Strive for Multiple Income Streams
  • Take a Money-Minute Break
  • Don’t Shop Impulsively

Managing finances is hard. Many organizations support managers and business owners in budgeting and saving money. However, there’s no such support available for regular joes and janes.

With our chaotic and busy lives, we hardly have the time to learn newer ways of financial management. Rather, most of us follow a well-beaten path for saving and investing.

The truth is, times are changing fast, and our conventional financial management isn’t as useful today as it was in the past. The first thing to do is to start thinking differently.

Outlined below are some of the most under-rated financial management tips for 2021. These tips are powerful enough to change how you think about money. 

So, without further ado, let’s get started:

  1. Never Underestimate the Power of a Budget 

Many people plan their monthly or weekly bills. Yet, most of them carry out all this planning in their head. 

Hence, they forget about their otherwise carefully planned finances a day or two after making the plan. 

This explains why everyone who manages money needs to set up a proper budget. A well-set-out budget can help you plan, track, and control your expenditures, making it easier for you to save more each month.

A typical budget calendar usually consists of the following:

  • Salary: You add all your incomes on your calendar exactly on the
  • Bills and Fixed Expenses: People use a budget to mark their bills and rentals. One may also use it to record the loans that they need to pay and on what days they need to submit them.
  • Other Expenditures: Using this budget, you can record every purchase you make in a month and how much it costs you. 
  • Saving and Goals:Successful budgeters effectively use this document to record their saving and expenditure goals each month. Other than the goals, you may also want to record the amount you save at the end of each month. 

Making and managing a budgeting calendar is easy. This calendar comes with great benefits and aids your process of financial management and saving. 

Using it, you can better manage your expenses and evaluate whether your current financial planning is efficient enough to help you achieve your future goals or not.

2. Consider Saving a Necessity, Not an Opportunity

One of the biggest problems for anyone managing finances is their inability to make balanced saving deposits. Truth is, you need to save a steady amount each month if you want to become financially successful. 

You can achieve long-term financial stability unless you develop a strong habit of saving a specific amount each month. 

Once you make saving a habit, there’s hardly anything that can stop you from being financially stable.

3. Never Rely on Just One Income Source

They say you’re only one step away from poverty if your job is your only source of income. If that’s true, then, unfortunately, most of us can become unemployed at a moment’s notice. 

Successful financial planners, however, always have a backup plan to use when they lose their jobs. If you want to achieve financial stability, you must focus on entrepreneurial ventures and other small side hustles alongside a full-time, regular job.

These additional income sources can also save you from bankruptcy if you lose your full-time job and can’t find a new one. You might feel over-burdened while having multiple jobs to look after, but it’s all going to pay off in the end.

4. Take a Money-Minute Break

Suggested and tried by expert financial managers, the money-minute break is an effective solution to check your expenditures and control them when needed. 

All you must do is to stop everything for a minute. Next, quickly evaluate your spending trends for the week. 

Consider if you’ve spent something unnecessarily and see if you can refund it. Also, try to reduce any unnecessary spending for the upcoming weekend if you are over-budget. Once you start taking these one-minute breaks every day, you will see how your spending habits tighten up.

Practicing these breaks for a month or two and you will see a positive change in your finances. 

5. Say No to Impulsive Purchases

No one has ever become financially successful by indulging in a lot of impulsive shopping. You must train yourself to make controlled shopping decisions no matter what. Asking yourself if you need a thing before buying it is a great way to save your money. 

Other than these, intensive budgeting at the start of each month and learning more about newer ways to managing finances are some ways that can help you become a better planner. You should also consider seeking financial advice from experts in case you can’t manage your finances easily. 

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