One of the biggest obstacles to good financial health is the impulse buy. This concept may seem so innocent...a simple purchase here or there shouldn’t really make a difference, right? Unfortunately, these unplanned purchases can become a habit that adds up to a great deal of lost money, along with a ton of regret.
Making consistent impulse buys can have a significant impact on your financial health. As we all know, bad habits are hard to break. They tend to add up and snowball. One poor decision can lead to others. That’s why breaking the impulse buy habit is so important. Fortunately, these tips can help you to make wiser spending choices in the future and gain better control over your finances.
One way to not spend without thinking is to avoid the places where you tend to make the most impulse buys. This can be the mall, your favorite beauty retailer, or online stores. If you don’t expose yourself to...
Maintaining a budget is the first step toward financial health...it’s important to be a good steward of your money. This is a fabulous habit to start but sticking to a budget can be tough. It’s easy to spend more than you’ve allotted on things like dining out, entertainment, the latest fashions, and other non-necessities. Allowing yourself some non-discretionary spending each month is smart; otherwise, you’ll feel deprived and unhappy. However, too many slips can hurt you.
These little overtures can add up to big issues. Stopping at Starbucks for your morning latte fix may be cutting into your house fund. The high cost of your premium cable service could be keeping you from paying down that credit card debt. Creating spending goals and sticking to them is crucial to reaching the financial goals you set for yourself. Take a look at these tips to help you change your spending habits and gain control of your...
How to Save a Little Bit of Money When You Go Out
Going out with friends to be social and to enjoy new activities is an important way to make sure that we are getting the most out of life and really enjoying ourselves. Money is there to be spent and if you never socialize because you're worried about the financial implications then you're somewhat missing the point.
But that's not to say that you can't save money on your outings. Many of us will regularly spend a good $30-100 on a regular basis on nights out with friends whether those are nights out drinking in clubs, meals out, or trips to the theatre. When you're struggling to make ends meet, a social life can take quite the toll and this might then be a ripe target for making savings.
With that in mind, let's take a look at some of the ways you can start saving money on your social activities. You can still go but by making just a few tiny tweaks to what you order, where you go etc., you can actually save a large amount of cash....
How to Afford Anything You Want With Kaizen
Let's start with the question you've probably heard before: If you were given a choice to receive one million dollars in one month's time or a penny doubled every day for 30 days which one would you choose?
When I first heard this, I knew that the penny doubled every day must be the better choice and I thought it must be a trick question of some sort.
But how much better would it be was not something that I knew immediately; matter of fact, I turned to the Internet for the answer. I found the calculations...each day doubled...and in 30 days the total was $5,368,709.12. Quite a big chunk of change when you started by comparing just a penny to one million dollars.
Kaizen is essentially the application of small, incremental lifestyle changes that add up to bigger changes that can improve your life for the better. Kaizen is a popular term right now in business circles but it's also a highly popular concept in...
How Tiny Savings Really Add Up
Want to be much richer than you are right now? Then start putting $1 a day away into a savings account. You can even set up a standing order and that way you'll never forget to do it.
This is a very small amount of money and a small commitment so in terms of your income you're hardly going to notice it. But it's more than worthwhile, which is why you should probably sign in to your online banking and set up that standing order right now. Read on if you need more convincing.
It All Adds Up
$1 doesn't sound like very much does it? Well, it's not: but if you make a habit of doing this right now, then by the end of the year you'll have saved yourself $365 which is not a small amount of money. That's enough money to buy a new computer, a weekend away with your partner or a very luxurious meal.
In two years you'll have $730. Which is definitely a lot. And in ten years you'll have a huge $3,650 which is now enough to go on actually quite a big holiday....
Adding Small Income to Your Income
If you want to be richer, then increasing your salary is just one option. Just as effective can be decreasing your overheads (saving more money), investing your cash or adding supplementary incomes to raise your overall profit and net worth.
The great thing about these latter strategies is that they are much more closely in your control that your salary. Your salary, unfortunately, is dependent largely on how much your employer is willing to pay you. If they won't pay you more, then you're stuck.
When it comes to outgoings though and subsidiary incomes, these are much more flexible and manageable and you can apply smart money management. Better yet, you can apply a 'kaizen approach' of continual, small improvements in order to increase your profits.
So how do you go about getting additional income in a small and steady way? And just how powerful can this be?
If you're willing to take on additional work, even if it's a very small regular...
When taking a deep dive into the lack money mindset, one of the biggest indicators is the belief that working hard is the key to wealth and success. If this were true, slaves would hold all the riches in the world. Working hard does not guarantee financial wealth.
A wealth mindset sees the value of hard work but doesn’t relegate the work to extended hours or back-breaking feats of strength and endurance. Those with a wealth mindset have adopted the philosophy of working smarter, not harder.
Working smarter, not harder is a concept that allows for hard work as well as delegation, outsourcing, and maximizing resources in such a way that the goals are met with ease. Let’s take a look at an example:
Example: Tammy’s Bakery. Tammy is a baker who loves to make her grandmother’s recipes. Tammy started a bakery that serves her mid-sized community. In the beginning, Tammy did all the...
When you shop, are you all about getting more for your money, or do you prefer to get the most for your money? In this case, more means quantity - give me all the white tees in my size! Most means quality - give me the very best white tee made no matter the cost.
People tend to fall into two funnels with their shopping - quality or quantity. Let’s take a look at the pros and cons of each.
Pros of a quality-minded spender:
Pro #1. A quality-minded spender is generally patient and willing to wait to find the best possible addition to their home or closet.
Pro #2. A quality-minded spender is more aware of the benefits of construction, good materials, and is looking to make an investment that may cost money up front but saves money in the end.
Pro #3. A quality-minded spender usually has timeless taste that avoids trends; therefore, their purchases outlast fads.
Cons of a quality-minded shopper:
Shifting your mindset from a lack mentality to a wealth mentality can feel overwhelming. Generally, people change their behavior when the pain of staying the same is worse than the pain of doing something new. Until then, they go about life doing what they have always done, hoping for different results. It doesn't work.
Everyone has that one thing that causes them to change. Whether it is an aha moment or witnessing or experiencing something that makes change necessary. One man’s trigger point is another man’s normal, but we can identify hazards of a lack mentality that might spark the desire for change.
Hazard #1. A lack mentality causes depression. If you have lived with a lack mindset believing that working hard is the only way to wealth, you may be experiencing depression. Chances are you are working harder than most, and you may not be seeing the conversion of work to income. You may also be making money but working so hard that...
Premarital counseling and talking about your finances can prevent a lot of problems. The theory is that talking about big issues before getting married can reduce the friction caused by different beliefs and behaviors. Discussing topics like child rearing, managing conflict, and managing money are important prior to getting married. I believe doing so can reduce the statistics on the divorce rate. Waiting to sort out the differences after the honeymoon can be hard, but not impossible.
If you’ve long since left the altar and now face the brutal truths that you and your spouse don’t agree on finances, it’s important to get a handle on things before they affect your relationship. Money is one of the primary reasons that men and women end up divorced or, at the very least, in relationships that feel strained and uncomfortable.
What should you do if you and your spouse don’t agree on money?...
Thank you for your interest in A House With Four Rooms and A Pilgrimage to Self. Subscribe today for your FREE report "10 TIPS for 'Airing" Out Your Four Rooms"!