A wise man once said that money is a spirit. Give a person more disposable income and their true test would start. Most times, people tend to spend more when they have enough money at their disposal. From a thought, it generates to a spending habit. The lunch out? The unnecessary subscription? The gym registration? These are not bad but money should not be spent frivolously.
It has been found out that money can never be enough. This is because our needs keep on arising. To take control of money and make it work for you, here are 7 money habits to adopt:
1.Set up a savings automatic transfer
Most people would hardly set aside money for saving unless through an automated process. Have a system where money goes to your savings account automatically. Make this a habit. It could be bi-weekly or monthly. Do something is worthwhile and works for you. You can start with 1%-2% of your income and watch the balance grow. Set a calendar alert to review monthly.
2. Have a savings mantra
This should be your motivation for saving. Think of the spending habits you would like to change. Probably reduce the amount of money you spend on lunch every week, cut out taking debts etc. You can create a mantra to support the new habit e.g ‘I only splurge on entertainment after I have saved and paid my tithe’. You can write your mantra or use it as a background on your phone
3. Have an accountable partner
Do you have dreams of owning a mansion, travelling around the world? You should share with an accountable partner, probably a family member, colleague or new friend, who would remind you of your goals. Write these goals down, let them be smart, measurable, attainable, realistic and time bound. Research conducted found that people who write down their goals, and give a friend weekly updates on their progress, were 33% more successful in accomplishing what they set out to do.
4. Stop overspending
Sometimes you can be tempted to overspend when the means is available. If carrying your credit card around prompts you to spend impulsively, you may want to put it behind and take only cash you need so that you don’t succumb to impulse spending. You should have a budget that you are sticking to.
5. Tell yourself you deserve more
It is normal to desire the latest gadget, weekend getaway and all the pampering but you should realise that there is much more. You deserve to job security, free from indebtedness and others. So put money away for these purposes. Whenever you are tempted to spend, ask yourself if it is worth deserving or can be saved for a later date.
6. Track your spending
Take account on how your money goes out. Know what is make you overspend. Is it important? If it is not, you may want to stop the habit and invest in something that is more urgent, needed and worthwhile. Use a amaster list as your guide.
7.Use advance saving strategies
You should have different bank accounts serving different purposes. Experts recommend setting up multiple accounts to work on multiple goals and establishing automatic contributions to each. Most importantly, be disciplined enough to commit to them.