Getting Control of Your Spending
So you think your spending might be a bit out of control? The good news is, you are far from alone! In fact, pretty much the entirety of western society’s economy is built around getting people to spend as much of their money as possible so stop beating yourself up! You’ve already taken the most important step, being mindful of your spending. All that’s left to do is to take some action and form some better spending habits!
Yeah, yeah, yeah, you’re thinking, but how do I actually do that? Well, here at Finovo, we are all about providing actionable advice, and that is what you are about to receive! Here are three steps you can take right now to start to change your spending habits:
1. Get crystal clear on where your money is going. Sure you could geek out like Russ and Kevin and build a fancy spreadsheet to do this, but it’s probably easier to just sign up for a spending tracker like Mint or You Need a Budget and let the robots do the analysis for you. And don’t worry, those robots are behind bank level security, so your private info is safe.
2. Give some thought to the question: What brings me joy? Once you have a better idea of where your money is going, reflect on how that spending is bringing you joy. Far too often we spend money just to “keep up with the Jones’”, not because that car / gadget / experience is actually something we want. So stop and think, and make some changes to avoid buyer’s remorse.
3. Complete a one month cash only challenge. This may be an advanced step for some people, but if you really want to rein in your spending, strongly considering only using cash for one month, or one week for that matter! Psychologically, we feel the pain of parting with our money much more when physically handing it over instead of tapping a phone or swiping a piece of plastic. This could be just the trick for you, but if a month is too daunting, start with a week and see how that goes.
If you can take even one of the above actions and implement it over the next few days, you will start to see some changes in your spending habits.
If you’d like some additional support with making a change, please setup an initial connection meeting with us and learn more about how Finovo can help you get better control of your finances.