Money Advice for Life
“Ouch, My Budget!” – Tips for Getting Your Finances Back on Track
When the joy and excess of the holiday season fades, you might be left with a seriously depleted bank account or a bulging credit card statement. When the bills are piled as high as the presents were under the tree – what do you do?
Blue Monday got you down?
Whether it’s after an expensive holiday season, unexpected expense, or from simply getting a bit too lax about your money, here are some main strategies to get you back on track.
Reduce: Your Spending
This is probably the most important tip. Reducing the amount of money going out will help you cover your debt, get back to saving, or whatever your goal is. I find it helpful to list out the expenses in your life that you would classify as needs (housing, groceries, bill payments, transportation, etc.), and those that are wants (eight different streaming services, eating out every night, new clothes, etc.). Then, you can see what can be reduced. Maybe you only really use one streaming service regularly, or only during new seasons of your favourite show. It seems small but these monthly fees add up fast and furious.
Modify: Your Behaviours
Do you find yourself automatically heading for the drive-through or coffee shop every morning out of habit? It’s time to modify your behaviour to push yourself toward saving rather than spending. Start adding bagels to your grocery list and pop one in the toaster before you head to work or take a different route that avoids your favourite stops. You can also incentivize yourself toward better financial habits. For example, you could charge yourself a fee (that goes into your savings) every time you make an unnecessary purchase or reward yourself for meeting savings goals.
My personal favorite that holds me accountable is to keep a running list on my phone of any purchases that I would have made if I wasn’t making an active attempt to save. For instance, if I typically would grab a morning coffee on my way into work and I successfully avoid the temptation, I will add $3.00 to my running total. It can scale all the way up to larger purchases as well. You know when you are trying on some clothes and you know that you don’t really need the item but would have likely bought it anyway? If you can push past the urge to whip out the credit card, you can add this to your running tally and before you know it – you’ll have a nice chunk of change saved and a note on your phone that applauds your impulse control and saving behaviour.
Add: Routine, Automation, & Income
Saving doesn’t always mean denying yourself of your favorite things! Both routine and automation are your best savings friends. Routine can be things like meal-prepping or taking your cash tips to the bank every week. Automation can be automatic bill payments or savings contributions that you don’t even need to think about. Just make sure before you automate, that your budget consistently allows for that money to come right out of your account. The final thing that you can add is income. See if there’s a way for you to use your skills, talents, or time to make a bit more money to pay down that debt or add to your savings. For me, it’s running a mini Varage Sale empire that allows me to create closet space while making some spare cash on the side.
All of these tips are meant to help you minimize stress and get back to a more comfortable financial place. Hopefully you see one or two that you know are do-able for you.