How to Keep More of Your Money
You made it through college, you landed the job you wanted, and you’re well on your way to reaching the level of success you had in mind. But to your dismay, you’re still living paycheck-to-paycheck. What are you doing wrong?
It’s simple, the more you make, the more you tend to spend. And at some point, the benefits of living the good life begin to outweigh the financial burden. Addressing the problem now and cleaning up the root of the problem can save you years of on the hamster wheel of finances.
Here are a few ways your lifestyle could be holding you back from enjoying the fruits of your labor:
1. No budget, no wonder.
If you haven’t sat down to your budget in a while, or ever, you’re missing the first and most crucial step to understanding your finances. Your budget can be as detailed or simple as you like, and can take as little as a few minutes to put together.
2. You’ve gotten swipe happy.
There is nothing so easy, and yet as potentially perilous as paying with a card. There is no such thing as good or bad debt, it is still money you will owe and usually comes with high interest rates, fees, and monthly obligations.
If you find your balance keeps creeping higher, put the card away. Every swipe, regardless of how big or small, takes more of your hard earned money.
3. You’re following someone else’s lead.
Most financial decisions are influenced by something or someone in some way. Since finances are not a one-size-fits-all, it’s important that you recognize your limits. Trying to keep up with others’ success is hazardous on your financial freedom. Do what makes you happy within a budget that doesn’t leave you strapped for cash every payday.
4. The impulse to be impulsive.
If you have lived without something up to now, you can most certainly live without it entirely. Impulse buys are a quick drain on finances, especially if you find yourself under a tight budget. And most often, they tend to lose their luster quickly. If you take a look around, you’re likely to find many of your impulse buys collecting dust. Set a rule to make as little impulse buys as possible. Give yourself at least 24-hours to consider it before you buy.
You work hard to earn your money. Striking the balance between enjoying the fruits of your labor and your finances takes practice. Don’t let your hard work go to ruin over simple fixes to your spending habits. With a little tweak, you can break the pattern of being strapped for cash.
Source: Wise Bread