How to Develop the Self-Discipline Needed to Keep Your Wallet Full
Most people understand on some level that they need to keep a budget. However, developing the self discipline needed to make that budget work is often challenging. If you’re one of those people who know you need to budget in order to keep your wallet full, you’ll appreciate these four budgeting ideas.
1. Correct Labeling
Sticking to a budget can be difficult if you don’t label your purchases correctly. Basically, what this means is that you see something as a need, but in reality, the object you want is either a desire or a thing that would be nice to have. You don’t really need it.
To help yourself make the distinction between your different expenses, The Nest suggests that you label all your purchases in one of three categories – needs, wants, and nice-to-have. For example, monthly bills go in the “needs” category.
Clothing and items like that would be put into the “wants” category. Everything else goes into the “nice-to-have” category. If you find yourself going over budget, look at your expense. Chances are you’ve made a want or a nice-to-have item into a need.
2. Save for an Emergency
One of the reasons that people don’t have the self-discipline to keep a budget is that they don’t plan for mishaps. Then once they run into emergencies, they have to pull money from someplace else to pay for a flat tire or some other emergency. Putting money away for this purpose—one or two thousand is good to start—helps to keep your wallet full.
3. Carry Only Cash When You Shop
Paying by credit or debit card makes it easy to overspend. One way to break yourself of this habit is to pay in cash. For example, if you have a weekly food budget of $50.00 bring only $50.00 in cash to the store.
Stop spending when your $50.00 is done. This makes you conscious of the money you’re spending. Make this a practice for every expense that allows for cash payments.
4. Pay Down Your Debt
It’s not the worst thing in the world if your circumstances lead you into debt once or twice, but don’t let that be a hole that you end up staying in. Make a plan, keep saving, and get out of debt as soon as you can.
For example, if you need to use a payday loan, like those at Payday Express, make sure that you will be able to pay it off as soon as possible. With that type of loan, it would be best to pay it off by your next paycheck.
After you pay back that loan, put your finances back in order so that you won’t need to use a loan again in the near future.
Furthermore, when you’re putting together your budget make it a priority to pay down your debt as fast as you can. If you get a tax refund or money for a special occasion like Christmas use it to pay off your debt.
Additionally, if you’re really serious about keeping your wallet full take on a second job. This not only allows you to put money toward your debt and hopefully, into savings, but it also prevents you from overspending.
If you’re too busy to spend the money you make you keep more of it. Getting a second job keeps you busy and your wallet full.
Developing the self-discipline you need to keep your wallet full comes with time and consistency. Being mindful of your spending habits plus developing some newer, healthier ones helps you to create some self-discipline habits. Start with these four suggestions to get your budget back on track and to begin filling you wallet once again.
Category: Financial Planning
