4 Ways to Stay in Control of Your Money … and Have More to Spend on the Things You Love
Strict budgets are a great way to make sure your mortgage, credit card, or other bills are paid on time.
This is why you feel guilty when you give in to temptation and make that purchase that messes up your monthly budget.
However, what a lot of people fail to realize is proper control of your money is more about readjusting your mindset and reviewing your cash flow than cutting out the things you love.
With that said, here are four ways to stay in control of your money and still spend on the things you love.
Use An App That Brings All Your Financial Information Together In One Place
From sticking to your monthly budget, canceling recurring subscriptions, and tracking your credit scores to managing your assets and liabilities, Keeping track of all your financial information can be a hassle.
You can reduce the stress of having to keep track of all your financial information separately, by getting an app that brings it all together in one place.
These money management apps offer a suite of financial products as well as tracking your financial information.
For example, the SoFi mobile app, lets you link all your external financial accounts to see all your money in one place, get a breakdown of your spending, and have access to credit score monitoring at no cost.
Create An Emergency Fund
Start building an emergency fund to cover unexpected expenses. Think about it as your insurance. With an emergency fund, you do not need to borrow any money in case of unforeseen circumstances.
You should aim to have three to six months of living expenses in your fund. This is a great way to prepare against unexpected unemployment. This way you can have enough time on your hands to search for a new job while paying your bills. Use your budget to calculate this.
An emergency fund should only be used for actual emergencies, like unemployment and sudden medical challenges that can’t be covered by insurance.
Your emergency fund will help you stay in control of your money, and it will provide you with the psychological strength you need to keep your cool in the most stressful of situations.
Shop Out Of Season
Be a smart shopper. You can save money on items by making your purchases out of season, creating extra funds to do more things.
The majority of the industries operate with seasons, creating new and more expensive products each season, making out-of-season products cheaper. For instance, If you’re planning a winter holiday it’s cheaper to buy your winter outfits in the summer.
This applies to more than just clothing items, it includes weddings, airfares, travel destinations and so much more. You end up getting the same quality items for a lesser price.
Plan For Large Expenses And Shop Around For Big Purchases
Not every large expense is predictable, but sometimes you might see yourself in need of one.
Planning and saving for a large expense lets you stay in control. Start your planning and saving months ahead of it.
Take, for instance, if you plan on going on a trip, rather than scrapping around for funds or using your credit card, you can budget and save for your vacation.
Shopping around for big purchases also helps you save money. You can compare prices and deals, to pick one that suits you the most and saves you more money. In a bid to save money, do not compromise safety. Be sure to make all the purchases you need without cutting corners.