Money is a touchy subject. People get uptight about it, spend many hours trying to get it, while those who have it are worried about losing it. Yet money is a tool which if used correctly, largely improves the quality of your life. If you aspire to have a positive relationship with money you can achieve that by developing financial discipline.
Have a Budget
Most people equate budgeting with pain but that’s not the point of a budget. It’s a guide that helps you train yourself to use money responsibly. Divide your budget into categories such as Savings, Investments and Spending. Spread your income among these categories and stick to the limits. Once you’ve reached your spending limit, don’t reach into the savings.
Track Your Expenses
This helps you see exactly where your money is going. Write down everything you spend cash on every day. Alternatively you can use expense tracking apps. It takes a while to get used to but you’ll get there. It helps you develop discipline whenever you’re about to make a purchase. In addition it becomes easier to tell whether you’ve stuck to your budget.
Resist Random Purchases
Not every sale is a real sale. A good number of them have marginally lower prices than the normal just to get people to shop. So if you fall for every ‘sale’ you’ll end up losing. Draw up a list of things you really need for each month and buy those first. Also, avoid shopping when hungry or on an emotional high. Hunger, excitement, sadness and anger contribute to unnecessary purchases.
Take Cheaper Options
Cut back on some luxuries where possible. If going to a place near home, walk or use public transport. Buy groceries in bulk at wholesale shops. Go for homestays when travelling and skip the hotel rooms when travelling. Make travel bookings in advance and plan your trips for low seasons when costs are cheaper.
Pay Yourself First
This doesn’t mean splurging on clothes or parties once your payment comes in. Doing that is giving your money to someone else. Pay yourself first by setting aside money in your savings account. This is the money you’ll use to go on that dream vacation, upgrade your furniture/ electronics or gift yourself that dope outfit.
