Many people think that a lot of their money problems stem from not having enough money but some of them actually come from not knowing where exactly their money goes.
This was me too, I’d get my salary, spend and spend, run out of money and take loans to finance my wants (not needs) until I got my next salary and the cycle could repeat itself. I always felt broke even when I was earning and had little to no bills. A friend of mine sat me down and walked me through planning for my needs and wants within my budget and that helped me live within my means and spend more intentionally.
Here are some things you can do to start spending more intentionally too:
Create a budget
If you thought I was going to skip over this one, you’re wrong.
Creating a budget is the first step to spending intentionally. You’re able to plan for all the money you get and ensure you can pay yourself first, pay your bills comfortably and pay for additional things (wants) you’d like. From there you’re able to tell what is or isn’t feasible each month and whether or not you have enough money to sustain you in the first place. Lucky for you we have a Budgeting Tool that helps you do this if you aren’t sure where to start.
You might not need every little thing you buy but you may want it for some reason. You might want that new coat, or to go for a road trip. It’s important to take stock of what you want and budget for it accordingly. This way you also don’t feel restricted, instead you spend on yourself without feeling guilty or taking away from your needs. We help you plan for this accurately in our online course, Your Roadmap to Wealth.
Practice money mindfulness daily
To build intentional spending habits you have to practice them daily. Everyday before you purchase an item, ask yourself, “Do I need this?” “Do I need it right now?” “Can I go a little longer without it?” “How long can I go without it?” These questions help you exercise delayed gratification, keep more money in your pocket and avoid spending impulsively. Some people take it a notch higher and do no-spend challenges where they refrain from buying things for a set period of time unless they truly need them.
In these last bits of the year, there are lots of sales from Black Friday to Christmas sales. People are really out to get you to buy, buy, buy and it’s totally okay to do so and do it within your limits. One way to avoid spending beyond your limits is to avoid window shopping. This also extends to “window shopping”through your phone and “just checking” what’s on sale then somehow you end up with 10 lip glosses and no money to take you through until you receive your next salary in January.
Marketing can be very powerful and sometimes the only way not to get sucked in is to stay away from anything that may derail you from your path.
If you want to learn how to be more intentional in your financial journey, spend and save intentionally, our course, Your Roadmap to Wealth will help you do just that. Get started today.