The way we think about money often boils down to spending and saving. We spend on those things we deem necessary and also on things that might not be so necessary. We save for homes, families, and cars. We might even save for retirement. However, we want you to think differently about money because not all money is the same. This change of mindset is key to money management.
Look for Small Ways to Save
There are so many ways to save money on consumer items. With coupons and sales, retailers are always offering discounts on their goods. The trick is to resist buying things that you don’t need just because it seems like a “good deal”. A great way to save is to simply not spend. There are a few necessities in life and then there are luxuries. Make sure you know the difference.
When you do want to splurge, find ways to make it a small splurge. Research travel sites and turn on flight alerts to save on travel. Use Groupon or other deal sites when having a night out or a special occasion. A little preparation goes a long way in keeping your finances healthy.
Grow your Money
The most important part of growing your savings is being consistent and disciplined. Start a savings account by putting away a realistic amount per month. After a year or if you start making more money, increase that amount. Don’t touch this money and you will quickly see it accumulate. An easy way to do this is to set up automatic transfers so that money is automatically pulled from your checking account to your savings account without you having to do it.
Make Smart Decisions
Credit card debt is one of the easiest ways to get into financial trouble. Be sure to make a point of paying off your credit cards each month. If you can’t, stop spending money on your credit cards and make a plan for paying it down.
Be sure you understand your finances before you make a large purchase, like a house or a car. If you need help understanding what options you have for these purchases, we can help you by providing information to assist you.