Often at the
start of a new year, one of our most popular resolutions is to become more
financially stable and responsible. Overspending and overextending ourselves
often comes from a place of lack and not feeling as if we have enough. It is an
emotional issue as much as a material one.
Sometimes we
feel as if by controlling and increasing the material volume of lives, we feel
more abundant. Not only is this not true, it has the opposite effect. The more
we spend our money in non-constructive ways, the worse we feel and the more we
spend to feel better. Vicious cycle much?
Money is a
deeply personal subject and financial circumstances
vary greatly from individual to individual and family to family. There are no
one-size fits all rules regarding money but there are some general tips that
work well for most people.
1.
Where are
you over-extending? Do an honest expense report for
yourself. Where are you spending too much? Rent is a common culprit -- experts
say this should not be more than 20 percent of your income. Moving to a cheaper
place is extremely freeing!
2.
Automate
your savings. This is a trick many financially savvy people know about.
Before you spend a single cent -- put away at least 10 percent of your income
into a savings account. If you can, put all bonuses (or any expected income)
into this account too. Name it something fun like "Round the world
ticket" or "Dream Home" to remind you why you are socking cash
away each month.
3.
Limit the
entertainment overdose. Eating and drinking out are often the reason the old
catch phrase was coined -- to have too much month left at the end of the money.
Only commit to things you can afford and don't say yes to things just because
you are invited.
4.
No spending
one day a week. This can be played creatively like a game! If you have a
transport pass, food in the fridge, coffee in the cupboard and wifi at home --
you are set. A walk outside, making lunch for your partner and Skyping a friend
are all free and fun!
5.
Remember
less is more -- need all those cable channels? Need that gym membership if you
only go once a week? Look for cheaper alternatives. How much is a drop in
exercise class? Is there a free first pass? Is Hulu a better option? Refer to
your report to see where you can cut back.
6.
Carry cash.
Not only does this make you feel wealthy -- you are less likely to want to dole
out cash on things like cabs and the small things that add up (another mimosa,
a t-shirt on sale). Swiping plastic does not have the same realization as to
what you are spending as handing over cold, hard cash.
7.
Give!
Paradoxically, being generous makes us feel abundant and the universe rewards
us by giving us more.
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