Life-Changing Tips for Personal Finance Growth
Most people don't seriously consider personal finance skills until they need them to overcome a problem. Debt success stories are only one example of how money skills can transform your life; with the right skills and mindset, you can not only prevent yourself from falling into debt but also grow your wealth. These five tips are life-changing for anyone who has been stuck wondering why they can't stick to a budget, or how to get out of the endless credit card debt cycle once and for all.
So many things are bought online these days that it would be impossible to live without a card. But what if you wanted to cut your spending down by half or more? You should withdraw your spending money and keep it in cash. When you have to actually handle the cash, it can make you reflect on just how much you really need something. You're able to get a better idea of how much you're losing when you physically see the bills dwindling from your reserve.
Treat Yourself Like You’re Your Own Child
It seems silly, but looking at yourself as a helpless person you need to be responsible for can help you save and spend more wisely. The next time you want to drop $25 on takeout or grab a coffee out when you have some to brew at home, think about what you'd tell your own child. Would you encourage this purchase, or would you tell them to keep their money and remind them why it's important to make smart purchases? You'd also likely tell a child that they don't need to have everything they like just because they can afford to buy it right now. You'll be surprised at how much money smarts you really have when you look at your actions from an outside perspective.
Don't Take Out Loans Instead of Budgeting
Some people qualify for loans that can get them something they want now, but they'd also be able to achieve the same thing debt-free if they had the patience to wait and save. Loans are amazing tools in many cases, but they are not resources you should default to. Their ease of accessibility is what lands people in trouble, especially when debt starts to pile up and they think another loan will be the last one that solves all their problems. Borrow responsibly, and tackle all the outstanding debt you have. If you're dealing with college debt, you can refinance Parent PLUS loans and other types of student loans with a private lender. This can lower your expenses, make repayment more manageable and give you greater confidence in your ability to pay off your debts.
Focus on Who You Are Now, Not Who You're Trying to Be
Money traps trick us into thinking that if we buy something, we'll somehow become better. After all, marketing isn't about selling products. It's selling an image and making you think that a product is the way to achieve it yourself. Make sure that when you're looking to buy anything, you consider the value it presents to you in the moment. Is this something that will improve your life or serve a purpose, or are you just chasing an idea?