When we start learning how to save cash we think that we need to get a solid set of rules under our belt. But we have to remember that working to save money is a struggle. And this is why it is so important to get into the right mindset. You might have had a negative money mindset that was ingrained in you as a child, but you can learn how to save more money by embodying a healthier money mindset. So let’s delve into this and show you what you can do.
Look at Why You Are Struggling to Save Money
There could be a number of reasons you are not able to save, and usually, this means that you have a lot of debt, or you don’t live within your means but predominantly, it could be due to your mindset. It’s so easy for us to blame our circumstances for our lack of money. But in most cases, we are responsible for it. So this is why you need to get into the right mindset. What does it take?
The first thing you need to do to determine why you are struggling to save money is to draw up a list of all your expenses and different income streams. If you realize that you are spending more money than you are earning, then it might be time to do something about your finances. This is the point where most people realize that they have been attempting to live beyond their financial means. However, after looking at their expenses in detail, they begin to see that many things can be cut back on without drastically affecting the quality of life too much. This could mean cutting back on your expenses. For example, if you have a timeshare or a maxed-out credit card that you contribute towards each month, then it may be time to do your research on what is the best timeshare exit company or what the best ways are to settle credit card debt. These are two great ways to minimize your monthly expenses.
Learning to Alter Your Approach
Many people think that they’ve got to have a lot of money, and they need to get it in a traditional way. But it’s not possible for all of us to earn a lot of money at face value. So if we want to live a certain lifestyle, we have to face up to the fact that we may have to take a different route. If you are craving some form of champagne lifestyle, the solution is about getting a job that pays that amount of money. But also, if you want to live a certain lifestyle, it could pay to learn a number of tips and tricks. For example, if you wanted to fly first class, you wouldn’t necessarily need to purchase a first-class seat, in fact, this American Airlines upgrade to first class shows you have to do it through getting complimentary upgrades. There are always ways around a problem but if you are hell-bent on living a certain lifestyle, you’ve got to ask yourself what your attitude is to finances.
Why You Need to Understand How You Spend Money
One of the biggest mistakes we make is not understanding how we want to spend our money. But it is not just about spending, it is about managing as well. We need to make spending more about investing in the right things. Because we could find that we are not applying ourselves appropriately. We think that in order to live within our means, we have to spend our money on cheap things. But this could pose a significant problem in the fact that if we buy cheaper things we will have to replace some more often. Part of changing your money mindset is potentially to do with investing in quality rather than quantity. In this modern age where people are being discouraged to avoid fast fashion, purchasing one high-quality garment could mean that we don’t spend any more money on clothes for a few months.
Understanding Your Budget Properly
If you want to change your attitude to money, one of the most important things you need to do is to look at what you want most in life, and then address your spending to see if it aligns with what you desire. You may think you have a yearning to live a certain life, but your spending habits could keep you away from living the life that you want. And this is why looking at your budget can help you become aware of the purchases that are stopping you from living a certain lifestyle. Because you might find that there are aspects of life that you invest in that are completely wasteful. For example, if you invest in a number of streaming services but you are also spending a lot of time out socializing, is it actually necessary to have it both ways? Because there are so many trial subscriptions to streaming services that if you really wanted to watch something, you could do it through this approach.
Additionally, you need to look at your phone bills, your cable bills, and every detail of any side hustles you have going on, or especially if your run an independent business! This can be everything from researching into discount contractor supply so you’re buying items and stock at the best possible price, to ensuring your marketing strategy is straightforward and working hard for you. Because if you are spending money in the wrong areas, this is where you could reclaim a lot of your unnecessary expenses. But also, look at the smaller purchases. It’s the small things that will add up. You might like your morning coffee when you are out and about, but it will be cheaper to make your own coffee from home before you head out.
Changing Your Brain
We have a hardwired attitude to money. Some people are notoriously Scrooge-like and will think about every single purchase, but others have a “you can’t take it with you when you go” attitude. It’s important to have a balance, but also understand that the attitudes that were ingrained into you can be changed. You need to change how you think about and perceive your finances. And this is where information may seem a bit strange, especially when it comes to finances, but there’s a lot of benefits to affirmations and self-talk in general because it can help you retrain your attitude to anything. One of the best ways to decide on the right money affirmations is to write down all of your biggest fears about money. Whenever you feel stressed about finances, make a note of the beliefs that caused you to hang onto my thoughts. You can then create new affirmations that contradict your fears about your finances.
Additionally, learning about money can help you too to understand how best to manage it. A lot of us very simply do not know how we can be smarter with our spending. This is especially true when it comes to credit card debt. So many of us pay interest on our credit cards rather than actually chipping into the money that we owe, which means that we are never digging ourselves out of debt. Learning about these things that we take for granted can help us become more clever with our debt and attitudes to money. For example, if you are in debt and there is no way of getting out of it, you may want to consider applying for bankruptcy, because this can reset your debt. But it also is a seismic event that forces you to think about how you spend your money in the future. Bankruptcy is something that works for a lot of people because their spending has spiraled out of control, but you sincerely need to think twice about this before you go ahead and call a bankruptcy lawyer.
You can also look at numerous pieces of literature that can give you a fresh point of view. There are great books out there like Rich Dad, Poor Dad that provides spectacular insight. Part of the mistake we make with money is thinking that we have what we have and no more. But this is where the right attitude can make a big difference to your abilities to earn. Investing is one of those areas that many people would not touch, but if you do it right it can make a massive difference to the quality of your life.
As you can see, money is not just about what you have in your bank account, but it can be so much more. Ultimately, it’s not what you spend your money on that will impact your life, but rather, it is your attitude.