Money and finances is something that can be very much a touchy subject for many of us across the world. This is because money affects almost everything we do in one way or another. Curt and I have had our fair share of dodgy dealings with sellers as well as banks and large organisations so we feel confident in saying that we have some know how when it comes to money.
Knowing Your Spending Habits
The first step we would recommend to being financially savvy overall is knowing your spending habits. Knowing your spending habits is one of the first steps that you can take. This is of great importance as our spending habits affect how much money we have left over at the end of each month to spend. Spending habits are normally formed after a few weeks or months and can be changed with effort and discipline.
A classic example of a spending habit is a weekly shop. Most people do a weekly food shop and during this they will pick up a variety of different types of food which they will eventually cook. However often when you are doing your weekly shop, you may find yourself picking up extra items on offer that you weren’t originally going to buy such as alcohol or unhealthy junk foods. These can easily add extra weight to your bill and drives up your costs.
As well as spending habits we all of course can come up against unplanned costs which can have a significant overall impact on our finances and bank balance. A typical example of this is an unexpected car repair or higher than expected mobile bill. These can have an adverse impact overall on your finances. It is important to have emergency cash in an account in case these events occur.
Changing Your Spending Habits
Changing your spending habits overall is something that takes significant time and effort in order to achieve. One of the best ways in which you can try and change your spending habits is by taking a note of them and keeping receipts as well as making spreadsheets.
Doing this can give you an overview of what your overall spending habits are and how much you are spending on food each week. It can be easy to lose track so it is important to keep some form of record for reference.
By cutting down impulse purchases as well as purchases made in addition to the essentials you need to be mindful of how much you are spending on different items e.g food , clothes etc.
Managing Your Money
As well as changing your overall spending habits it is important that you manage your money overall. Managing your money is best done via the bank. This can be done online or in-branch. Each month try assigning yourself a budget and ensuring that you are able to save a small amount at the end of each month which you can use for the future. This will enable you to save for the future and live a more financially secure lifestyle overall.