Tag: finances

Money Attitudes and How They Shape Your Life

The way we think about money determines how we move in life. If you feel that you should spend every dollar you make maybe it is time to change your attitude. Prices are skyrocketing on just about everything and this trend does not seem to be slowing down. Spending for housing, food, education and definitely commerce with the tariffs being assessed, puts a strain on finances.

With that in mind, it never hurts to have some kind of financial cushion. Do you save every time you get paid? If so, then you are heading in the right direction. What about investing? This one is a little tricky. It depends on whether or not you are willing to risk financial loses, along with returns.

Are you a chronic spender? Purchasing things that you don’t really need but want, just because you have money. Spending this way leaves you vulnerable in times of an emergency. If you spend, spend, spend and have no savings, try to work on putting something aside. Some people feel that they worked for their money, so why save it.

Ways to Save

• Start small- save a reasonable portion every paycheck. It doesn’t have to be the same amount each time or a significant amount. Something that is comfortable enough for you to set aside. Whatever your starting amount is, work your way up each time in increments.
• Open an interest-bearing account – this method ensures that your money will grow over time.
• Direct deposit- if your employer offers direct deposit, have the amount you want to save come out of your check automatically and into a savings account. This way, you don’t have that money in your hand, but it will go directly into the account where you can monitor the growth.
• Pay yourself- do not forget to pay yourself. You work for your money, so don’t forget to keep some for yourself too.
• Investing- consult with a financial advisor about your level of risk before making any investments in stocks, bond, annuities, etc.
• 401-K, Roth IRA- these are more long-term investments. The earlier you start on this the more you will have at retirement for those golden years.

The best way to ease financial stress is to first create a safety net. If you know that you have money set aside, you will not be so overwhelmed and stressed when those emergencies arise.

Living paycheck to paycheck is a reality for some people. A shift in attitude can turn that around. Start to budget your money and eliminate things that you don’t need. Before making a purchase, stop to ask yourself if this is a necessary expense.

The tax return refund is often a missed opportunity. Use the refund for saving and put it towards your safety net/emergency fund. Instead of spending it before you get it, put the money aside. At least, most of it. You would be surprised how this can jump start your savings journey.

Look for other ways to cut back on your spending. Little things add up and quickly. Start to keep track of your daily spending for two weeks. Review it and see where you can cut unnecessary spending. The economy is so uncertain in today’s time. If banks are unfavorable to you, do what works best for you to find alternative means of saving.

Yes, it takes work to change our financial situation. Attitude is the ingredient to making the change we want to see. No one else can do this for us. Start small and build from today. You can do it!

Image by muqadas Muqadas from Pixabay