Saturday, January 19, 2019

Change the Way You Think about Money (17 Tips that Work).

April 26, 2018 by  
Filed under Money, Opinion, Weekly Columns

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(ThyBlackMan.comYou can see hundreds of success stories about simple guys, who started from the bottom and now are making millions of dollars. Unfortunately, more than half of these stories won’t work in real life. Each of us has his own story, abilities, resources, the volume of motivation, etc.

That’s why it’s crucial to create your own strategy on the way to success and financial independence.

In order to change your attitude to money and restart your life, you should first check out these short but working tips that will show you the right direction. Knowledge and information are the powerful resources that you can use to boost your productivity! Start now and enjoy the results in future!

Be Cautious with Loans and Credit Cards

Living our lives without a credit card, mortgage, or auto loan is almost impossible. Even if you can’t give up on loans, you should choose the least harmful one.

For this purpose, you should choose the trustworthy and proven lending institution. Within it, you will find the loan with the most reasonable terms, APR, loan amount, etc.

You should understand that the traditional ways of lending aren’t always the best ones. For instance, you can borrow $2000 at Personal Money Service and still benefit. At the same time, you can borrow from the bank and suffer from the unfair interest rate and high additional payments.

So, if you need a financial help, you should take time and choose the most reasonable solution first.

Create a Budget

1. Create a Skeleton of Your Budget

Firstly, you should create a table or an Excel sheet and divide it into several categories. Here is a short but working guideline that will help you to understand the main categories in your budget sheet.

2. Try All-Cash Diet

The all-cash diet is the same as it sounds. You should try to pay for everything with a cash instead of using credit cards or personal loans. The results of this experience can surprise you. It makes people more conscious about money spending. It also helps to develop healthy spending habits.

Here you can familiarize with the experience of a real person, who tried the all-cash diet.

3. Take a Minute a Day…

to check out all your transactions. Brainstormed by the LearnVest Founder and CEO Alexa von Tobel, the idea is about checking out all your expenses and identifying the problems in your spending habits.

4. Leave 20% of Your Income for Financial Priorities

By allocating 20% of your income to savings, emergencies, paying off the debts, retirement savings, you will make a good deal. Seems like it’s a small percentage? Believe us – it’s enough if you truly allocate it every month.  

5. Allow Yourself Spending 30% on Your Life

If you allocate 30% of your income to your lifestyle spending (hanging out with friends and family, happy hours, discounts, etc.) and will stick to this rule, you will definitely see the changes to your budget!

How to Get Motivated

6. Create a Vision Board

No matter how old you are, creating financial vision board is always a good idea to organize and motivate yourself.

7. Set Exact Financial Goals

Don’t just write that you want to pay off your debt. State how much you want to pay off and till what period. Then define the regular payments that you will make on time.

8. Hook Up Positive Thinking

Spending mantra isn’t a joke. It’s a powerful message if you truly believe in it. Just say to yourself “Is it better than a travel to Paris with my husband next year?” or “I promised not to spend more than $50 on these items!”

9. Set Smaller Goals

The human’s brain tends to perceive the long-term goal less positive. The achievement seems to be so far in the future than we can even forget about it. Set smaller goals that are much easier to achieve. For instance, you want to change a car. Set as a goal selling an old car, saving a certain percentage of your income, postponing some less important expenses, and, finally, purchasing your dream car!

Reaching a goal step by step is more attractive.

10. Define the Right Message

No negative thoughts! If you keep thinking that you “Never get out of debt!!!”, you will definitely slow down the process. Fill your head with positive thoughts. When you repeat that you “Will pay off the debt soon and be happy”, it will definitely happen sooner.

11. Strict Discipline Leads to Success

The studies have shown that people, who do exercises every morning, tend to be more productive during the entire day. Sport disciplines us. Self-discipline brings everything (and our financial issues) in order.

12. Appreciate What You Have

There are no limits on the way to success, development, improvements. You should move on but learn to appreciate what you have and enjoy the moment.

How to Deal with Debt Wisely

13. Don’t become a Cosigner

Yes, it might sound cruel but it’s our reality. If a borrower is your friend or a family member, becoming his or her cosigner can ruin your relationship. If the lender requires a cosigner, he doesn’t trust the person. So, with 50% probability, he will fail in debt repayment.

14. Choose Federal Student Loans Over Private Ones

Federal student loans have better interest rates and other conditions. Plus, you can choose among plenty of the student loan forgiveness programs if you can’t pay off the debt.

How to Shop Wisely

15. Purchase Emotions, not Things

By spending money on a concert or a workshop, you will get more positive long-term emotions than by spending on the new trendy shirt or a dinner in a restaurant.

16. Shop Alone

Shopping with friends is something like “Yeah! This stuff fits you so good! You have to buy it!” Spend time with your friend walking in the park or making a picnic and shop alone next time.

17. Don’t Be Afraid of Coupons

The US lives and uses coupons and it’s a normal thing. We are overpaying everywhere. So, why don’t we use a tempting offer from the favorite store or a supermarket where you shop every day? The answer is clear – coupons are a great deal!

Being cautious about your expenses means thinking before you make a purchase. Ask yourself a simple question “Do I REALLY need it?” If you have a certain goal, you will definitely say “No” before buying a trifle and keep on moving toward your goal.

The financial well-being is about discipline, organization, and positive thinking. Don’t forget about it and you will reach the success!

Staff Writer; Reggie Shaw

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