What to Do Differently With Your Money?
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5 Things to Do Differently With Your Money…Starting TODAY!!!
Increasing our knowledge and understanding of how money works is critical to managing it better. This isn’t all we can do, though. Little things that we don’t also think about matter too. So if you want to be better with money, here are five things to do differently…starting today.
1. Stop associating saving money with depriving yourself
Yes, being better with money and saving more will involve some measure of sacrifice. There’s no way around this.
If you’re currently spending a lot of your extra money on fun, cutting back provides a chance to get ahead financially. But just because you’re on a journey to save money or pay off debt doesn’t mean that you have to eliminate ALL fun. In addition, you don’t have to give up the things you enjoy.
When saving money, some people believe they can “only” spend on the things they need. In which case, splurging and indulgences are not allowed. Yet, this is a dangerous mindset because one of two things might happen. They either view saving money as too restrictive, and they don’t even try. Or they deprive themselves to the point of frugal burnout, and give up on saving money altogether.
So while you should make sacrifices, don’t deprive yourself. Moderation is the key. So as you create your budget, don’t forget to set money aside for fun and indulgences.
2. Less talking, and more doing
Sometimes I’ll hear someone say, “One day I’ll start a business or side hustle,” or “one day I’ll create a plan to pay off debt.” But someday never comes, and five years later they’re in the same place – saying the exact same thing.
So starting today, stop talking about making financial changes and take the first baby step.
Do you want to pay off credit card debt? If so, stop using the card TODAY and make an extra payment this week (no matter how small). And if you want to start saving money, cancel a subscription service TODAY, and start paying yourself this money each month.
Action is the first step toward building financial confidence. You can take control of your money, instead of having your money control you.
3. Stop taking advice from “technically” broke people
Now, this doesn’t mean that you should only take advice from people who have money. To be clear, that’s not what I’m saying.
Due to circumstances beyond their control, some people can’t save a lot – yet they’re good with money. And others have made mistakes due to lack of knowledge, but they’re currently on the right path. So if these individuals give solid financial advice, by all means take it!
On the other hand, some people are broke because of a YOLO (you only live once) attitude or overindulgence, or because they’re living above their means (because they want to live a certain lifestyle). People like this are less likely to encourage smart money decisions. Instead, they might encourage their way of managing money.
I’ve encountered these types of individuals. And sometimes, they can be extremely persuasive and pushy. It’s like they’re bothered by your desire to be responsible with money.
4. Don’t be afraid to suggest cheaper alternatives
Financial peer pressure hurts a lot of people. When friends suggest expensive activities or experiences, some people go along with the idea to save face – because they don’t want to admit when they can’t afford something.
The reality is, not everyone in a friend group will be at the same income level. And those who earn more might enjoy activities that cost more – and that’s okay.
However, if you feel that every suggestion is over the top and expensive, don’t be afraid to speak up and suggest more cost-effective alternatives. This also applies when you have money to spend, but you’d rather spend less.
Others in the group might secretly appreciate your low-cost suggestions.
5. Don’t be afraid to take risks
This is not implying financial irresponsibility.
I’m referring to calculated risks. And if you’re not familiar with this term, it’s a carefully considered decision based on thorough research. Although there’s some risk of failure, there’s also a high risk of success.
Examples of calculated risks might include:
- investing in real estate
- leveraging debt to start a business
- investing in the stock market
Some people want to do these things, but don’t because of fear. This is a valid feeling – no one likes to lose money.
But while fear can protect us and our money, don’t let it completely control your financial decisions. Keep in mind that knowledge reduces fear. So research, educate yourself, and understand worst-case scenarios – and then consider the likelihood of these scenarios occurring. The more you understand, the less scary a decision might seem.