They say our thoughts and attitudes shape the way we experience the world. This rings true in the world of finances too. Cultivating and maintaining a healthy relationship with your finances plays a key role in your financial freedom and well-being. But how, do you ask does one have a healthy relationship with money? As impossible as it may sound to have an active relationship with your cash, it really is not that difficult. Let’s take a look at how you can improve your relationship with money.
Yes, as with any other relationship, you should always be attentive to what is happening with your money. Be aware of how much is coming in, how much is going out, and how you feel about your financial status. If you pay attention to these things, you are one step closer to having a healthy and happy relationship with your cash.
Make Time For it
There are many things we make time for in our day-to-day. But those of us with a negative relationship with money tend to leave it running in the background, paying it no mind. This is the worst thing you can do. Make time to sit and sort your financial matters. If you do not keep a handle on things, you may just end up losing track completely. Nurturing your finances is as good as nurturing your mind.
Think Positively About it
A lot of us harbor negative thoughts and feelings towards one of the biggest things in our lives. Money plays a major role in living, and when we think negatively about it, no doubt our experiences will reflect these negative thoughts and feelings. This will also not improve your relationship and overall financial well-being. Making time for money, respecting it, feeling good about it will help you in the journey to a fantastic relationship with your cash flow.
Can you think of any other ways to improve your relationship with money? Have you found these tips helpful? Share your thoughts on cultivating a healthy relationship with money in the comment section below.
It’s pretty difficult to try to save money when you are knee deep in debt. But falling into the debt trap has become so easy and almost inevitable. Besides, you have bills to pay, the mortgage, school fees and still be able to provide for your family month-in and month-out. Having bad debt is a very tough spot to be in, but it is not impossible to get out! Let’s take a look at our 5 easy steps to get out of debt.
1. Stop Borrowing Right Now
Cultivate a mindset of ‘if I can’t pay it with cash, I don’t need it’. Avoid borrowing money as far possible. If you already have debt to pay off, the last thing you need is to make more debt. Stick to the accounts you have to pay and commit to paying them off.
2. Commit to Having Emergency Stash of Cash
The easiest way to do this is to have a saving jar in your cupboard or in the kitchen. If you commit to putting whatever cash you have on you in it at the end of the day, you should have a large sum for emergencies available within a couple of weeks. Remember, you are trying to avoid making more debt. Do not cave and borrow money when an emergency strikes!
3. Make a Budget and Stick to It
If you have a budget, it should be easier to avoid overspending, and you will have a solid grip on your money matters. Knowing exactly where your money is going is important when managing cash, income, and debt.
4. Pay Off Debt When You Can
This might seem impossible right now, but if you have followed the first three steps, you should have some extra cash at the end of the month available to throw at some of your accounts. Try to allocate an amount to each of your creditors and pay them when you can with whatever amount you have available. Slowly but surely you will see the mountain of debt that is crippling you disappear.
We can’t stress enough how important it is to avoid making more debt if you already have multiple accounts to pay off monthly. Remember, it is a process and patience and determination is key to achieving financial freedom.
If you are on a very tight budget, and you are always worried about how you are going to get through one month to the next, you are not alone. The economy has got everyone cutting back on luxury items and saving more. But how can you save money effectively without compromising your lifestyle and still breathe easily? Just follow our top 5 tips below!
#1 Keep Track of Monthly Expenses
You should have an idea of what you spend during the course of a month. But keeping track of what exactly is coming into and going out of your account is key to getting a grip on your saving habits. Keep receipts, draw up an excel sheet and stipulate all the expenses of the month. This will help you avoid overspending.
#2 Draw Up a Budget
Once you have your expenses sheet ready, you are equipped with all the information you need to draw up your budget. Include your income and allocate all your expenses in a new spreadsheet. Now you are able to see if you are currently overspending.
#3 Decide How Much You Want to or Can Save Monthly
Now you can decide what exact amount you are able to put away each month. Depending on your individual needs, you can either allocate some extra cash to unforeseen expenses and dedicate a set amount to save monthly. Be sure that you cannot easily access this money.
#4 Get Your Priorities Straight
There is a big difference between buying something you need and buying something you want. Learn how to distinguish between actual needs and wants and you should be able to start prioritizing your spending allocation.
#5 Choose Something Specific To Save For
Whether it is a long-awaited second honeymoon, home improvement costs or saving for your retirement, deciding on what you want to save for will keep you motivated to save. Once you have decided what you are saving for, keep track of how your savings are accumulating over the course of a couple of months. This will also serve as motivation to get you closer to your saving goals.
Saving can be difficult, especially if you have unplanned expenses for a couple of months in a row. Hold on tight and stick to these steps and stay committed – you should be on your way to saving perfection in no-time. Did you find any of these tips helpful? Share your own money saving tips in our comment section below!