While some people are natural-born savers, there are other people who love to do nothing more than to spend their funds. However, this can lead to some fragile financial situations, leaving spenders looking at ways to help cut back on their impulsive purchases before they have to tighten their belts completely. Money management is key to living comfortably, and while you may turn to a payday loan lender like us here at Wizzcash when faced with a financial emergency, ensuring that you have managed your funds appropriately to build up an emergency budget is important. Here, we’re taking a closer look at some money management tips that you may take into consideration if you’re a spender.
Stay Emotionally Connected With Your Money
One of the most effective money management tips that some people believe works for them is to build an emotional connection with their money. While this is a psychological tip, this can lead to you wanting to watch your money grow as opposed to parting with it. Instead of tipping the scales completely when it comes to building this initial connection, try and develop a healthy emotional bond with your money – tighten your belt a little, but still don’t be afraid to spend your money on the things you need. Some psychologists believe that the way we behave with money stems from childhood, and how your parents handled money will build the foundations of whether or not you’re a spender or a saver. This is known by financial psychologists as a ‘money script’ and this typically consists of unconscious thoughts. If you’re scripted to be a spender, then you may need to break this bond in order to build up your budget.
Create A Realistic Budget
Everybody has an idea of how much they would like to save each month, but it is important that the budget you put in place is actually realistic. A strategy that some people use is to take a close look into their income and expenses as the first step, subtract the income from the expenses (is there money left over?), and allocate where the funds should be going each month. You may want to set aside a budget for your spending habits too as if you cut this out completely you could find yourself struggling to stick to your budget within the first month of saving. Have a plan for every single pound that you earn, so you can be certain your funds are being allocated to the right place, instead of being wasted on things you don’t need.
Turn Away From Brand Names
While brand names are always an attractive option for many, you can significantly save funds by turning to cheaper alternatives which still offer quality. While you may want to stick to the brand name for long term investments such as mobile phones or laptops, when it comes to cables or headphones, choosing lower-priced alternatives can provide you with items that do exactly the same job, at a much cheaper price. While many will consider the quality difference, often the money that is being saved by opting for these non-branded variations, which are still exceptionally competent, is dramatic.
With many different ways to build up funds and manage money, it is becoming easier than ever for spenders to start putting away the funds they need to build up for the future. Changing how you think about spending could help you build up a financial cushion and save money. Alternatively, it could help you repay money you have borrowed in the past, like a short term loan or a personal loan.
Generic advice is not a service regulated by the Financial Conduct Authority.