Most of us have a complicated relationship with money. Although we know that we rely on cash for everything from paying bills to dealing with everyday food costs, it can be difficult to feel anything but stress when we look at our bank accounts. That’s because while it takes a long time to build a sold emergency savings fund, it can take only seconds to destroy your budget, and leave you wondering what happened to all of your good intentions.
If you’re worried that your relationship with cash is causing too much stress in your life, then it might be time to change things around. The following tips will help you to change the way that you feel about your money, once and for all.
Establish a Financial Plan
Financial plans are essential for taking control of your finances and making sure that you know how to accomplish specific goals. More than just your basic budget, a financial plan takes your budget into account, and uses it to help you figure out what you want to accomplish in the long-term.
With your financial plan, you can determine where you want to be 10 or 20 years from now, and what kind of strategies you need to put in place to reach your goals. These plans help you to figure out what you need to prioritise first when you’re managing your cash, and where you can afford to let things slide from time to time.
Be Realistic
Building a positive relationship with your finances isn’t just about learning how to tell yourself that you can’t spend money all of the time. Although it’s important to know when you need to say “no” to a spending opportunity, you also need to think about when you should be saying yes. For instance, maybe it’s worth borrowing money so you can buy a better car to get you to and from your new job?
If it means that you’ll be able to avoid being late for work in the future and potentially earn a promotion one day down the line, then it could be worth the extra money now – particularly if you know that you can afford the monthly repayments.
Learn Patience
There are various ways in which patience will factor into the relationship that you have with money. First, you need the patience to tell yourself that you have to wait until you have enough money in your bank account before you can take advantage of things like sales and spending opportunities. Unless the thing you need to buy is urgent, then sometimes telling yourself no for a while will be the best way to protect yourself from cash mishaps.
Another way that you’ll need to use patience in your relationship with money, is by giving yourself time to build your savings. You can’t expect to have a huge savings account appear in your bank overnight. It’s going to take time to reach your goals.
Start Using Cash More Often
If you’re the kind of person who prefers to carry plastic to pay for everything they need, rather than using cash, then it might be time to start using cash more often. Although cash can be less convenient than a credit or debit card, it will help you to pay attention to what you’re realistically spending every day. When you take a certain amount of cash to the supermarket to pay for your food, you can’t just grab some extra items when you go to the checkout whenever you feel like it.
You’ll be limited by the amount of money that you have with you. Switching from plastic to cash can help you to avoid impulse buying, which really pays off in the long-term.
Take Small Steps
Finally, commit to making small changes with your financial situation on a weekly and monthly basis. One month, you might decide that you’re going to half the amount of times that you order from a takeaway when you want food. The next month, you could focus on looking for ways to save on your utility payments by comparing providers online.
You don’t have to transform your entire financial situation overnight to really start getting results. You can think about taking smaller, more manageable steps instead. This will make you feel less like you’re restricting yourself with your new budget, and more likely your making positive steps towards a happier life.
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