If you’re in dire straits, you may realize it’s time to change your spending habits. Contrary to popular belief, effecting great financial change isn’t all about austerity. Sure, you want to spend less, but simply modifying your approach will allow you to spend more wisely.
After all, we want to maintain a positive attitude about money. One that leaves us open to abundance, not one that makes us feel like we’re lacking what we need. Here are three easy ways to change your financial standing for the better.
- Cash only.
A lot of people who feel they spend too much avoid cash. “If I have it on me, it’ll disappear,” they think. However, relying on plastic can actually lead to that increased spending.
When you allot yourself a certain amount of cash, you have a much more sensory idea of what your budget is. You can see and feel every penny you spend. When we use plastic, each visit to a shop brings with it the possibility of cleaning out our entire account.
Take your cards out of your wallet, period. Leave an emergency card locked away in your glove box, or another place where it isn’t easy to reach for. If you only have so much cash, you’ll be more hesitant to spend a big chunk of it.
- Spend time, not money.
If your financial situation isn’t good, you probably go to great lengths to not think about it, let alone discuss it. Here’s something you need to understand right away: avoiding money won’t bring you more of it.
Every single week, sit down with your statements and look at the big picture. Chances are, you have payments coming up, so you may need to adjust this week’s budget. In addition to this, read a book about finance, find an interesting article about personal finance online, and talk about money with anyone you share debt and income with.
The goal is to dedicate time to demystifying money, so that it isn’t some dreadful topic hanging out in the shadows.
- Pay it off, pay up front.
While you are becoming more well-acquainted with finances, be especially wary of the word “financing”. Hold off on any purchases which require payments and interest. What seems like a great deal on the spot is so often the reason we end up in debt in the first place.
The same goes for borrowing money and taking out loans; you have to be careful with this. If, for example, you visit KingOfKash.com, you can see what the terms of a loan include. It all sounds great, but does it serve your overarching goal of becoming more financially secure?
Sometimes, taking out a loan and paying it off right away can help your credit, but you should verify that this is beneficial through a reputable lender, such as your bank.
Does money make you nervous? If so, you’re worried you don’t have enough, or are concerned about parting with what you do have. Instead of fretting, take action – deal in cash, spend time exploring the world of finance, and stop adding onto your monthly roster of bills. You can start seeing the benefits in just a few weeks.