Some people just seem to be naturally better with money than others, but regardless of whether you are already someone who can stretch the dollars in an efficient way or a person who struggles to make ends meet; there are always some new tricks to learn in order to improve your money mindset.
Whether you are trying to reset your finances after fighting for compensation with help from a personal injury lawyer like Marks & Harrison, or simply trying to be smarter with the money that you have, here are a few ideas that could help you take greater control of your cash.
Know where you stand
To be able to make positive changes to your finances you need to first know exactly where you stand with your money and where it is going each month.
It is amazing to discover just how many people have no idea whatsoever of how much money they actually spend on running a house, food, clothing and any other regular expenditure.
You need to track your monthly spending and put everything you spend down on a spreadsheet or even a piece of paper if you prefer, as long as you record everything you spend in a month, so that you can exactly where your cash is going.
Only when you have that information to hand, can you then set about making cuts and adjustments where necessary.
Go back to cash
Paying for things with cash might seem like an antiquated way of doing things, with so many electronic payment options available, including your smartphone.
The problem with paying by card or waving your phone to make a contactless payment, is that it doesn’t always feel like you are spending real money and that makes it way too easy to overspend.
If you work out a budget and decide how much you can afford to spend on things like groceries and entertainment, try drawing out the cash to pay for these items and leave your cards at home.
You will find that you almost certainly spend less at the grocery store as you think about each item you put in the basket and that late-night pizza on the way home from a night out, might not seem so tempting if it is going to clear what cash you have left on you.
Using cash is a great discipline and gives you a heightened sense of awareness and discipline with your spending habits, when you physically have to hand over money that you have worked to earn, rather than charge your card.
Small financial goals soon add up
It can be a bit de-motivational when you are saving for a long-term goal and your financial target seems such a long way away.
This can often allow you to lose focus and interest in putting money away. If you take a different approach and develop a series of bite-size financial goals that are more easily attainable, you will often find that you end up saving more money and are less likely to give up.
Neil Tason enjoys turning saving money into a game. It’s something which he finds easy and enjoyable and helps others change their money mindset in his articles which appear mostly on personal finance blogs.