5 Ways to Create Better Spending Habits

 If you are stuck in a rut with your money and not sure why you can’t propel yourself FORWARD… it might just be because you have something holding you back….

Check out these FIVE ways you can create better spending habits..

Look where you want to go

Goal setting is SO important.  If you don’t have a vision you will hesitate to move forward. It’s true.. having a VISION is critical!

Where do you want to be in 5 years?  Do you need to start an Emergency Fund? Would you like a college fund for your children?  It’s important to identify the areas that need focus, note your short AND long term goals, and then start taking actions to reach each of those.

Short term goals are invaluable – they will give you the motivation to push on towards those longer and more distant goals.

Know your Pitfalls

Just as important as knowing your strengths is also knowing your weaknesses. Take time to reflect upon what your pitfalls are ~ over the last week I have seen SO many people say..

“I can’t walk into Target without buying anything”.

I’m pretty much the opposite – both my husband and I are weird in that we can walk into Target, spend an hour there, and walk out empty handed. We are WEIRD like that. But some people can’t resist bouncing from area to area, and before you know it, you have handed them over $100 and have a buggy full of stuff.

You know yourself better than anyone – if you can’t resist buying things at Target, try not making a trip. The same goes for other areas – if you can’t resist eating out with co-workers, find a way to change that. Self admittal is the first step.

Pay Yourself First

Most people get their paycheck, pay their bills, spend some, and then have SO little left to save…  Although paying your bills is extremely important, put yourself up there in importance too.

We’re not talking about saving HUGE numbers – but $50 per month or a small amount you can afford will be a great start. And starting small is important because that is what will build your confidence and momentum – if you can replicate that each month, you will be more likely to stick with your actions long term.

Check your Bank Account – and Often

Don’t get so busy that you never log in and look. It’s important to get in there regularly and check your transactions.

You might have something coming out that you didn’t realize..

Or, you might NEED to see how much you are spending on eating out for it to make an impact on you. Whoa – I really AM spending a lot. Time to cut back.

Knowing where the bulk of your money is going is a great opportunity to devise a plan to reduce that expense (or, perhaps eliminate that expense altogether) and find a route that is more cost effective.

Figure out your Needs & Accept them as That

Determine what you needing your life to make you happy, content and comfortable, and then stay there. Most of the wealth that is prominent amongst others involves living below your means. 

Finding that point where you have determined exactly what is necessary in your life, and learning to be happy and content with that point instead of buying more things will ultimately allow you to put more in your savings & investments. That, in turn, will help you retire easier.