Whether you’re driving to work or checking Facebook, chances are you’re constantly being assaulted with advertisements for the latest, greatest deals and products. The secret to avoiding temptation is to remember this mantra: Spend less than you make.
Here are three ways to keep yourself financially on-track and on-budget:
- The Frugal Mindset: Before you consider answering the call of the shopping mall, begin by overhauling your attitude toward money. Flick that switch from “Spend” to “Save.” Prioritize paying off debts and building savings, rather than acquiring stuff. Surround yourself with similar-minded friends, and avoid places and websites where you splurge shop. But also remember to set a financially responsible goal to reward yourself for your focus!
- Be Wary of Credit: You won’t be able to meet your long-term retirement goals if you’re building up more credit card debt (and interest) than you can afford to pay off at the end of each month. If you’ve been going into credit card debt because of hobbies and pricey beauty treatments, consider affordable self-rewards instead. If you’ve been accumulating debt to pay for necessities like food and bills, consider a second career to help you reach a more secure place.
- Budget Wants Versus Needs: Aim to spend less than half your after-tax income on necessities, 20% of it toward savings, and less than 30% on “wants”. When determining where to spend, ask yourself: Could I save this money, and my family would still have everything they need this month? And remember, saving is a vital part of keeping your family safe in case of emergency.
Focus on making money, not spending money. The greatest investment you can make is not in things, but in your health and financial security.
To learn more about how to improve your financial life, including embarking on an exciting second career, visit Syncis at http://www.syncis.com/associates/