What can we do to meet our basic needs and provide for some of our wants without going into debt and wrecking our financial future? I suggest 3 ways to manage your money better.
1. Spend every dollar on paper before you get paid.
Too often we spend money without really knowing our financial ability. We look at our checking account balance, we do some mental math, and decide we can spend. The reality is, most of us can’t remember what we ate for lunch three days ago. How can we expect to make good spending decisions doing mental math?
A thought-through written spending plan that governs where you’ll spend and how much you’ll spend, will take the guesswork out of it and empower you to do better.
2. Budget in the fun stuff.
Often when people try to get their finances under control they cut out everything that’s non-essential. The problem with this approach is that it’s not realistic. Going from spending freely to not spending on anything other than essentials is setting yourself up to fail. It’s no different than those new year resolutions you make every January.
No one can go from doing everything you want to do to doing nothing.
Take a balanced approach. Make sure you’re meeting all your financial obligations, like paying bills and saving, while also allowing for those things that make life worth living.
3. Find accountability that works.
Smart and successful people seek help from those who know more than they do. They are teachable and willing to ask for assistance in order to get better. You’re not alone in this struggle.
Why not enlist help to ensure you’ll reach your financial goals? Something as simple as a monthly meeting with a coach or accountability partner, to go over your progress can have a significant impact on your success.