When it comes to money, it isn’t always about finding ways to reduce spending and save more. Because money is so pervasive in our lives, it can really take a toll on our overall well-being.
Whether you have financial goals that you’re struggling to attain or your attitude about money is keeping you from living life to the fullest, we could all use a reboot when it comes to the way we think about money.
Here are four ways to change the way you think about your finances so you can spend, or save, with confidence.
Track Every Penny You Spend for an Entire Month
The very first thing you should do is track every single penny you spend for an entire month. That includes any money you transfer to friends and family, coffee you buy on the way to work, and of course, all the bills you pay throughout the month.
Chances are, after the 30 days are up, you’ll discover some interesting financial facts. You might realize you’re spending way more money on treats at the gas station than you should, or you pay for subscription services you don’t need.
Based on what you discover, you can create a monthly budget that sticks to your financial goals.
Determine Your Net Worth
It’s easy for your finances to get you down. The opposite can also be true. You might think your finances are in good order when they’re not.
The best way to find out exactly where you stand is to determine your net worth. In order to do that, you need to list:
- The money in your bank accounts
- The value of your investments
- The value of your car
- The market value of your home
- Any business interests or investments
- Personal property of value
- Cash value of insurance policies
Then, you subtract the debts you owe to determine your net worth.
Go on a Cash Diet
Just a few decades ago, money was a concrete thing. Today, most transactions are electronic, which is causing us to spend money in ways we never would have spent it before.
If you find that you’re tempted to spend more using plastic, consider going on a cash-only diet. When you only use physical cash to make purchases, you’ll think more about the things you buy on a day-to-day basis.
Create a Vision Board
If you have financial goals you want to accomplish, you should create a vision board. By creating visualizations of your money dreams, you can organize all the thoughts in your head. Seeing your goals in front of you can encourage you to follow through with the daily steps it takes to meet those goals.
It’s never a bad idea to trim your spending and find ways to put more money into your savings account, but make sure you look at the big picture too. With these four tips, you can change the way you think about money, which will change the way you live your life.
Author: Oliver Curtis
Hi there. I’m Oliver. I’m just a young boy from the outskirts of… Okay, that’s a lie, I’m not a young boy anymore, although I certainly feel that way at heart.