5 Budget Hacks to Change your Attitude Towards Money

by Redeeming Riches on August 12, 2019

Sometimes, if you really want to make a difference to your financial status, the first thing you need to do is alter your attitude towards money and budgeting. The relationship that we have with money these days can be difficult, particularly when it seems like we’re never earning as much as we need. However, if you’ve been having a hard time with your finances, there are ways you can make a difference just by making a few changes to the way you approach money.

You might have heard of the more common ideas like cutting out unnecessary expenses and spending more time tracking your cash, but these slightly unconventional concepts may have a much greater chance of delivering real results.

1.     Think like a Bank

Have you ever borrowed money from next month’s budget to pay for something you want today? This is something that a lot of us do. However, it often means that we end up in a negative cycle where we’re constantly spending more than we earn and leaving nothing in our bank account for savings. If your habit of pinching money from your savings is leaving you with nothing for the future, then consider taking a bank’s perspective to borrowing.

When you take out a loan from a bank, you need to pay interest on whatever you borrow – no matter how short the term might be. If you decide to borrow £10 from your savings this month, tell yourself you’re going to pay £15 into your savings next month. This will cause you to think more carefully about whether you really need an item immediately.

2.     Slow Down

Life is seriously fast-paced these days. It may feel as though you barely notice the days as they whiz past, particularly when you have a career and a family to look after. However, when it comes to budgeting, it pays to slow down. If you see something that you want when you’re out shopping, don’t just whip out a credit card.

Tell yourself that you’ll come back and buy the item tomorrow if you still want it. That way, you’re not stopping yourself from spending on the things you want. Instead, you’re giving yourself the time to decide whether you really want to spend that money, or you’re just getting overly excited. You don’t need to do this for every purchase but try and make a rule for taking 24 hours to about any expense over £5.

3.     Invest in your Future

Once you’ve figured out how much money you need to pay on necessary things each month, like your mortgage and utility bills, do you often find that you immediately start pushing your leftover money into the items you want? Hold on for a second. If you’re coming to your savings last, after you’ve done things like buying takeaways and new video games, then you’re not doing yourself any favours.

If you want to be prepared for anything that life has to throw at you, make sure that you treat your savings just like any other bill. Make them a necessity in your budget and set up a direct debit that automatically pulls money into a separate savings account each month.

4.     Pay Your Bills All at Once

Have you ever bought something that you couldn’t afford one month, because you forgot about the bills you need to deal with at the end of the month? An easier way to avoid this problem is to rearrange your payment dates with every vendor that you can, so that you pay for everything at once. Although this means that the day after payday probably isn’t going to be much fun from a financial perspective, it will also ensure that you make fewer mistakes with your cash.

When your necessary expenses come straight out of your bank account when you get paid, there’s less of a risk that you’ll end up over-spending on wants before you’ve handled the needs. That means that you won’t end up in debt with your landlord or utilities companies.

5.     Spend Absolutely Nothing for One Day Each Week

Finally, get into the habit of spending less by forcing yourself to spend nothing for one day each week. That means that you don’t pay for a coffee on your way to work. You don’t even pay for petrol – you hitch a ride with a friend instead or walk to work if you need to. A carpool could be a great way to save money here.

Spending nothing one day each week will give you more money to put into your savings, and it will also remind you of how easy it can be to be frugal when you put your mind to it.

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