There are many reasons people struggle with saving money. Many factors that we are sometimes are unaware of. In this article we will discuss some of these reasons. 11 reasons you are struggling to save money 1.Cost of living It would be an injustice to talk about saving money without acknowledging the cost of living. The inflation rate keeps rising which means prices are hiking while our income remains the same. High costs of living, such as housing, healthcare, and education, leave little room for saving after meeting essential needs. 2. You don't Budget (or stick to it) A budget is to your finances what water is to your body. You might survive a day or two without it but in a long term you will feel the effects. Without a clear budget, it's challenging to track income, expenses, and savings. Overspending becomes common, making it difficult to save 3. You live beyond your means Spending more than you earn will leave you with nothing to save. Spending more than w...
Improving your finances should always be on top of your to-do list. I have compiled a list of easy habits or ways you can easily adopt today that can guarantee improvement in your finances.
Here are:
15 Money Management tips to improve your finances today
Being Conscious with your money
How many times have you found yourself wondering where your money went? There is a reason for that. Most people spend most of their time multi-tasking and constantly on the go. It is easy to then spend money mindlessly.
To achieve financial freedom and be on top of your money game, you need to know and mindfully understand where and why you spend your money.
Set Personal Finance Goals
Deciding to improve your finances should be a personal choice. The motivation has to be intrinsic. To be successful in improving your finances, you need to set a goal(s). Setting your goals will motivate you and give you a compass.
Your finance goals need to be realistic and specific. You cannot aim to save $50000 by year-end when your income is less than $1000 a month. It is unrealistic and it will frustrate you in a long run. You cannot also just aim to save money. Put a number on it.
TIP: Start small. Maybe reduce your spending by 10% in the first month.
Start Budgeting
The easiest yet most effective way to get your finances in order is budgeting. Mapping your finances out and following the plan is the best thing you can do for your financial health. Make a monthly plan on how you will spend your money and stick to it.
If you have never budgeted before do not be intimated by the complicated online budgeting tools that will take a huge chunk of your time. Just write the list of your projected expenses and income then plan around that.
Learn more about budget: How to budget: beginner's Guide
Ditch the ant expenses
‘Ant expenses’ are those insignificant expenses that you make through the day. Purchasing a cup of coffee there and a bag of chips there is an example of ant expenses. Singularly they do not make much difference to your bank but accumulatively they cause a huge dent.
Cut them down as much as possible.
Surround yourself with like-minded people
It is easy to get sidetracked and lose focus on the financial goals you have set for yourself. Surrounding yourself with people who are on the same journey as you can be motivating, and they might share a few tips with you.
Seek Guidance (if need be)
The fact that you are here, reading this is article, is a positive indicator that you aren’t afraid to seek guidance. It is important to ask for help when you need it. It will help you keep your cool and not be overwhelmed.
Pay your debts on time
Paying your debts in time will save you from paying unnecessary interests. It will also keep you updated about your liabilities and positively affect your credit score.
Plan your future (Retirement Plan)
There is not a best time to start planning your future but now. Planning out your retirement will ease your mind when it comes to personal finances as you will always know there’s a plan for you.
Eliminate Emotional Purchases
Most people are not aware of this, but our moods can affect our spending. Some people shop more when they are stressed out while others spend more when they are happy.
It is imperative that you be aware of your moods and how they affect your spending. It will help you eliminate emotional spending and thus save you money.
Track your spending
Have you ever tried to reconcile your money and didn’t know where your money went? You are not the only one.
It is easy to spend money without putting much thought into it. But if you want to save money or at least understand it. You might even learn a few interesting things about yourself. Most importantly, you will what costs you more and how to trim those expenses off.
Use coupons
With shows like extreme cheapskates and extreme couponing, it is understandable that couponing has a bad reputation and stigma. The truth is, it doesn't make sense to pay for something that you can get for free or paying a substantial amount when there is a way to payless.
Use coupons as much as you can. However, do not spend money on something you don’t need simply because it is cheaper.
Go on a spending fast
Give yourself a period of time, maybe a month, where you will not be spending. Only buy your essentials and that’s it. This spending detox will help you curb the urge to buy things you do not need out of habit. The aim is to allow yourself to get by without spending money.
Set aside fun money
Improving your finance does not mean depriving yourself a nice time. The aim is to afford you one. For budgeting and expense tracking to not overwhelm you, you need to budget for entertainment. Doing this will stop you from overspending on entertainment. We all work to afford to have fun. Do not deny yourself that. You have earned it.
Sleep on it method
The principle of delayed gratification. If you see something you like and would want to buy, do not buy it on the spot. Wait for at least a day to see if you truly want it and was not driven buy impulse buying.
How many times have you bought a nice pair of boots that you later realised that you can not pair them with anything in your wardrobe? I have done that one too many times.
Get a side hustle
One stream of income is not enough. No matter which part of the world you are from. Multiple streams of income mean more money to spend. If you can find a way to earn passive income, that’s even better.
There are a lot of options online, from teaching English, copywriting, to social media marketing, virtual assistant. Choose the one that works for you and run with it.
Sources:
https://www.fscb.com/blog/7-money-management-tips-to-improve-your-finances