Think about it though, do you really need a new phone? Didn't you just get one last year? Do you really need that twelfth pair of shoes? Shopping compulsively is a major reason why we overspend, fail to save, and get into debt. Taking the time to compare prices when we shop is an exercise in wisdom. When you spend, get the best value for your money. Plan much of your spending. For instance, go to the store with a grocery list. Splurge from time to time- because you are human, but be smart about that too! Plan your splurges: the cost of the splurge, where the money will come from in your budget, and on what item. We DON'T want you to be deprived. We want you to be solvent!
You work enough! That is why you spend right? Spending is fun and you are tired of working; but the truth is, that without a budget, your finances will go awry, and debt and starvation and homelessness in your old age are much less fun than budgeting. So budget.
You're young and working now so you spend all you make. A car, a great wardrobe, tech toys; you're young- you have all the time in the world to save! While some of that may be true, you have no idea what may happen in life that you will need money for. Emergencies are democratic. Even if you have no emergencies though, by planning and saving early, you will greatly increase your wealth. That means getting more of the items you plan for and attaining them easier. You will be much more comfortable in your retirement as well. Studies show this over and over.
You think in terms of all or nothing. I'll give you an example. This month, you blew it! You spent too much. Maybe you dipped into savings or pulled out your credit card too often. You know what the mistakes are and instead of making better decisions one moment at a time, you are putting off doing that until- something. Maybe your next pay cheque. Bad idea. Nothing needs to be perfect but you need to be mindful about what you are doing and not spiral out of control. When you make a money mistake, be aware and do better- right away. Thinking in terms of perfection and procrastination will only make your problems more severe. You blew it! Fine. Don't panic! If you can - return the purchase. If not then go back to the budget and start punching numbers into this budget! Check the damage and try to fix the problem asap.
You're not tracking your spending! You may not be making huge purchases, but coffee and snacks on the go really add up day by day, especially for families! Track these small expenses and see what they total up to. You may be surprised and need to cut back.
You spend first and save second. Don't! Here is a really simple method. Take a reasonable portion of your earnings and save that. Then pay your bills. Then- out of the remains, you may spend! Don't touch the savings.
Remembering and recording your goals, helps you to stay focused and avoid spending money that seems to have no purpose attached to it. Budgeting can help you with this!
Tough things like the loss of a job or sickness will happen. Old age will definitely happen. Don't be underfunded in these areas. They are too essential to your health as a person. Given the choice between buying something that you will eventually throw away, and investing in your protection, choose investing in yourself. You are so much more important than that new whatever!
Start small with amounts of money and products that you can afford and understand. Educate yourself in this area. Don't overlook investing because it gives you a headache and you are afraid of it. If you don't know why you should invest, see facts four and eight.
Don't lend money you can't afford to, no matter how much you love the recipient. It is financial and relational suicide! Talk to all relevant parties to such an arrangement before making one; for example your spouse. Proceed with caution; and remember, you can't give what you don't have. Treat any loan like a bank: ask lots of questions and make sure it is known how the money will be paid back and when. It will likely be reasonable to make a written agreement to make sure the person remembers the loan and record on the agreement any amounts and dates of any payments. It is well known that friendly loans get paid back much less than usual.
