Change the habit; the habit of spending. Firstly you need to learn how to save on small things. Saving, spending, they go hand in hand. This is probably the fastest and easiest way to improve your financial situation. We’re not always fully aware about the money we spend on certain daily habits. Habits are a very strange thing. They just happen time and time again, and generally subconsciously.
If you put a value on each time you ‘do’ a habit it ends up costing a small fortune. If you go to the same coffee shop day in and day out: that’s a habit. Drinking coffee in a local coffee shop on a daily basis drains your monthly budget. How can you break that habit? Well that’s not for us to say, but we’ll give it a go anyway. We know you need your coffee, but just consider how it gets into the cup. Maybe pick up a home coffee machine, or get one at work, they really do produce great coffee these days and cost cents on the dollar. Try taking a bottle of water with you so you might sip on that rather than get a coffee for the sake of it.
How much electric energy or water are you using each day? It’s not one of those free resources that are just there like air, it costs money. If the weather outside is not very hot, you don’t need to use the air conditioning and vice versa, if it is not very cold you can turn off or set the heating at a lower temperature. If no one is watching TV or if no one is working on the computer, turn them off, or power them down. Make sure that the taps are turned to the end and don’t let the water run unnecessarily. Have a 10 minute shower instead of a 30 minute shower. It all costs money and if you adjust the way you do or use these things, they’ll end up saving you money.
This has nothing to do with skimping – it’s just a case of thinking what it is costing you unnecessarily, and then adjust your habit. By cutting down on some of those habits, you’ll have reasonable savings by the end of a few months. No-one is saying “don’t do that anymore” but if you’re honest with yourself you know there are many, many, more “habits” that you could adjust. A slight adjustment will save you a lot of money over the course of a month.
So do you know what the fastest way to improve your financial situation is yet? Habit: Change: Adjustment: Realigning; any of those will cover it.
What habit do you need to change?
A good start to understanding the habit change process is taking the Free Your Money Personality Quiz to find out your emotional attachment to money and how to overcome and manage it.
Your Spending Plan is an online budgeting tool. It's easy to use and set up in a knowledge based step-by-step process where you’ll learn how to take control of your money, identifying where you can save and where you can spend without blowing the budget.
You'll be nurtured through creating your own personalised budget that you can follow and change as your situation and finances change. It's a valuable tool.