Posted on Saturday 17 June 2017
Developing some new money habits is important when you are attempting to transform your financial portfolio. It takes time, but it is well worth the effort. Your daily decisions regarding money will have a huge impact on your long-term financial health. Just physical health requires good eating and daily exercise, your financial health also depends on good decisions and vigilance.
Daily choices can help you become financially stable
What are you doing on a daily basis to increase your income? Are you researching ways to gain higher interest on your savings at your bank? How are you cutting back on spending? These are just a few questions you can ask yourself as you steer towards financial health.
Many Canadians have to work harder than ever to achieve financial success. If you don’t know where to start, balancing your saving and spending can leave you exhausted and confused. That’s why we’re here with some advice on how to control your spending habits!
If you set up a proper budget and start controlling how you spend money daily, it’s possible to achieve financial security long before retirement. Here are some tips for whipping your budget into shape.
Bill Earle said, “If your expenses exceed your income, then your upkeep will be your downfall.” In other words, spending more money than you earn is a quick way to sink your ship.
Though most of us know how much we make per month, and roughly how much we spend on groceries and gas per week, it’s hard to keep all the detailed figures floating around in your brain.
That’s why it always pays to have a budget on hand to keep track of your income and spending to make sure you don’t tip your canoe over.
It might not seem like that last-minute pack of gum or the celebrity gossip magazine at the checkout won’t make a difference, but it will. Small things add up fast. If you're trying to save and get on top of the financial game, being wise to daily spending habits can make you more mindful of your spending.
It’s tempting to make small purchases like lattes, candy bars, and bags of chips. While these don’t seem like much, spontaneous little decisions eat up your money over time. Building extra expenses into your budget will help you keep up with your finances.
Budgets go beyond the basics. A good budget, in fact, will track every penny. Small purchases, like those mentioned above, add up fast and get away from you if you aren’t tracking them.
If you don’t know how much you spend on impulse buys every day, carry a little notebook around and write down even the smallest expenses. This might feel tedious, but you'll soon be able to see exactly what you're spending money on, and how much you’re spending.
Once you know how much pocket change you spend daily, you can either build the number into your budget, or simply cut back.
Some people mind find it exhausting to write a note on their phone every time they buy a package of mints. If you don’t feel like tracking every single impulse buy, write a “petty cash” column into your budget.
For example, you can leave the house with only five dollars in cash, and when it’s spent, it’s spent. You’ll still keep track of your spending, but you won’t have to make tedious little notes.
An all-cash diet can keep you from overspending, and it’s easy to stick to. Once you've spent your cash, there’s no more money to spend, meaning you’ll never go over budget.
Living all in cash might not be realistic in today’s credit card world. Some places don’t even take cash, and online purchases are impossible without a card of some kind. However, even if you limit daily spending, groceries, and restaurant bills to cash, it will still help you stay on track.
One way to improve your finances over time is to open all of your bills the moment you receive them. When you receive your bills, catalog them. You can use a dated calendar to sort the items, knowing exactly when to get them in the mail!
If you want to take care of everything on the spot, immediately write a check, put it in the return envelope, stamp it, and walk it directly to a mailbox. If you make this a habit, your bills will always be paid on time.
You'll never get anywhere by paying the bare minimum on your credit cards every month. Interest will start racking up, and you’ll soon be paying double in fees. Establish a monthly payment that will begin cutting into the interest and lowering your balance.
Keep ahead of this problem by paying down the entire balance every month, and never spending more on your card than you would in on-hand cash.
Some banks charge excessive fees for using out-of-network ATM’s.
Locate an ATM that has an agreement with your bank, or one with a low fee. These charges add up. You don't want to be pay four dollars just to get access to your own money.
If you work in the city, it’s tempting to eat out every day. This expensive habit adds up fast! Instead, start packing your lunch, or stick to a moderate weekly budget for eating out.
In addition to saving money, packing lunch from home also bolsters your physical and mental health.
You shouldn't dip into your savings unless there’s an absolute emergency. Stick to a budget.
It takes time and patience to get in the habit of spending your money wisely, and just as long to save it! These tips will help you stay on track of any budget you set up.