6 Helpful Tips To Put A Halt On Impulsive Purchases

As you dig thru the pile of the items that you regret purchasing, you realize that you have one recurring problem. You keep on engaging on impulse purchases! Your credit cards do not seem to help you either. Instead, it invites you to shop more as if it calls out your name.

How can you reduce this tendency to shop without forethought? Well, start by planning ahead.

#1: IT PAYS TO PLAN AHEAD

When it comes to eliminating your unwanted expenses, it pays to plan ahead. Make a list of all the items that you need to purchase before shopping. Make it a habit to plan for upcoming occasions, birthdays, and other large purchases.

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Equipping yourself with this list as you shop around ensures that your purchases are more deliberate and less spontaneous. Furthermore, you may anticipate the upcoming clearance sales and other promotions.

#2: PINPOINT YOUR TRIGGERS

Take control over your shopping habits by monitoring your urges. Using a piece of paper or your handphone’s notes, mark each time you experience the urge to purchase. Describe the situation and the feelings attached to it. This helps you to increase your awareness while you shop.

Be aware of the different symptoms such as faster heart rate or a change in breathing. Becoming more aware of the changes in your body and mind can help you control the urge.

#3: IT TAKES 30 DAYS

You heard about contemplating for 24 hours before committing to a purchase. However, have you heard about the 30-day waiting period? Yes! You read that right. Stick your wish-list on your refrigerator and put a date to each item. You must wait for a month before making a purchase.

The mechanics may sound easy, but it takes a lot of patience and self-control to overcome the urge at first. These feelings are valid and can fade soon. You will take delight sketching out items off the list! The only exemptions to the 30-day period are groceries and other necessities.

#4: AVOID THE TEMPTATIONS

A surefire-way to reduce your impulse buys is to avoid going to shopping areas or shopping websites. Do not even go to dollar or budget stores as you might get trap in the process.

When purchasing, follow a list religiously. Get out as quickly as you can afterwards. Avoid walking around the shopping center for entertainment and find other ways to stimulate fun.

#5: IT IS ALL ABOUT THE BUDGET

Trimming down your expenses does not mean that you have to take out the fun. Give yourself a “splurge budget” that you can follow thru each month.

Decide whether you are willing to allot a budget for a new clothing item or a fancy restaurant date each month. Whatever it is, ensure that you are willing to spend a discretionary amount every once in a while. Take it as a way to reward yourself for straightening your finances. It is healthier that way!

#6: DO NOT MIX WITH THE WRONG CROWD

Surrounding yourself with people who are addicted to retail therapy may not be the best idea. It is easy to get out of track when your shopping buddies convince you that all the outfits you have tried looks great!

Image Credits: pixabay.comIf you want to shop with your friends, do it with people who have savvy spending habit. This way, you will be able to tell spend your money in a frugal manner.

Sources: 1 & 2

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How To Make Money While You Sleep

What is your idea about passive income? For most people, passive income provides an opportunity for freedom and independence. It gives an escape from our 9-5 jobs that occupy most of our week.

There are different ways to generate income while you are “sleeping”, here are just some of them:

START A BLOG

If playing with words comes naturally to you, you may find passion in writing. Establishing your own blog is quick and easy to do. Simply purchase your own domain or create your own website at no-cost thru website builders such as Wix.

Equipped with your glistening blog, you can either sell your stuff or share your expertise to earn some legitimate cash on the side.

CONSIDER P2P LENDING

Let’s face it! Banks do not lend money out of sheer kindness. They do it because it is profitable. Get a taste of the action by joining P2P websites, which allow companies from around the world to loan money from private people.

P2P Lending is highly attractive to both the borrowers and the lenders. Firstly, P2P Lending loan qualifications are more relaxed than that of given by the banks. On the flip-side, lenders can reap the benefits of up to 20% per annum.

INVEST YOUR MONEY

If you have money to spare, consider investing your funds to grow your nest. Let the company work for you as you receive dividends from them. Directly owning a stock in a company or through a fund enables you to receive dividends. A dividend is a cut of a portion from a company’s profits.

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The amount of money you receive depends on how much stock you own and how much profit there is to divide. Ultimately, the rewards that you will receive are decided by the board of directors. Do prior research before committing to a company.

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Personal Finance Tips for Rookies that Will Help You Save

Like most people, you are searching for the best way to fall on the right money management track. Falling behind your money-saving goals can feel discouraging, but it’s never too late to start learning some money-saving strategies. Throughout our lives, the relationship we have to money is dynamic. We have different needs and different spending habits. If you were never paying attention to your money-making and money-spending habits, this is the right time to start.

To organize your strategy, follow the tips below. They have been tested and proven to work on multiple occasions.

Keep a closer eye on your expenses

You know how much money enters your accounts monthly, but are you fully aware of how much you spend? Keeping a closer eye on your expenses will help you identify areas where the money is spent unnecessarily. You want to know how much money you spend monthly, and you want to keep tabs of your expenses. If you’re reluctant to keeping tabs manually, consider downloading one of the numerous expense trackers online. Alternatively, you can create your own expense spreadsheet.

Still, tools like Mint.com or Tink are amazing starting points in your expense tracking journey.  Some apps can even offer you small synopsis of your spending patterns. With all that information, you will be able to make better money-management decisions in the future.

Keeping track of your expenses also helps you prevent further expenses. If you can’t differentiate between wants and needs, picking up this habit can help you.

Have a budget plan in order

Once you get deeper insights on your money spending habits, you can start to outline a budget plan. Monthly budget plans will offer you a clearer idea of how your financial situation will look like in different stages of the month. When you notice discrepancies between your plan and actual budget, adjust the first. This will ensure you are in touch with the financial reality of your household, not the theory in your plan.

To outline an accurate budget plan, include your fixed monthly expenses: utilities, cell phone bills, car insurance, rent, or mortgage payments, and so on.

Take into account variable expenses, as well. Things like gas, personal care items, and one-time expenses are also important when creating a monthly budget plan.

Don’t forget about your savings account! If you don’t have one, this might be the perfect time to open one!

Establish a clear list of financial goals

Without clear financial goals you want to achieve by creating better financial habits, you are unlikely to work things out. Your financial goals can be anything, from saving up for a home down payment to paying off a debt, to saving up for a car or for a retirement fund.

Maintaining a clear list of goals will make you focus more on achieving them. It will also help you handle your finances more carefully. Being fully aware of your financial goals will also contribute to making better financial decisions. You will be more balanced between your spending and saving habits, and you will be more motivated to find extra income streams.

Invest

Investing is a clear way of making extra money. When the money coming from a single income source is not enough to pay your monthly expenses and saving, additional streams of income can help. Financial advisors come with several investment suggestions that are proven to work. The most efficient seems to be Forex trading. Before starting your trading journey, research Forex low spread brokers. As expert traders explain, they are the most advantageous for rookie traders. Low-spread brokers are those offering the smallest difference between the Bid and Ask price. This means you can buy currencies at lower prices and sell them for higher amounts. The benefit of choosing such brokers is obvious here. Your profits will be higher, in this scenario.

Have an emergency fund

Financial emergencies are not pleasant, but they can appear at all times. Having an emergency fund for such situations will help you keep your savings untouched. Medical visits or car emergencies involve huge amounts of money.

Establish how much you want to put in your emergency fund. This will only depend on you and your financial abilities. However, the more you put in this account, the better. According to financial advisors, those who still struggle with debt should aim to have at least $1,000 in their emergency fund. Others claim that you should have at least 3 to 6 months of your living expenses in your emergency fund. It mainly depends on your ability to save so much or not.

Try to figure out how much your household is comfortable with saving for this purpose. Saving something, no matter how little, is better than finding yourself without any money in emergency situations. For the beginning, set aside $5 or $10 for emergencies, weekly. If you’re comfortable with it, increase the amount periodically.

Prioritize expenses

All people have to prioritize their expense. Ideally, your spending habits should align with your values. Do you care more about buying a new kitchen appliance, or about your summer vacation? Pick between the two. Apply the same principle to all your expenses, and you will be more likely to save money, in the long run. Apparently, financially well-off people seem to value more experiences over physical things. You could try to implement the same strategy. Because new physical things appear frequently today, obsessing over them will only lead to higher expenses. Prioritizing experiences and things that bring happiness, in the long run, is more rewarding and less expensive.

These are the basic ideas and tips recommended for people who want to save some money but are not as experienced in the matter. Your money-saving journey can begin today. It’s never too late to pick up healthy money management habits. Go at your own pace and you will be more likely to succeed. Avoid letting external pressure guide your decisions and only make those moves you are comfortable with. Of course, the rest of your family should follow your lead. Saving money as a family is more effective but it can also be more difficult to manage.

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How To Teach Children About Financial Choices

As a parent, you must guide your children’s path to financial independence. Fortunately for you, there are available online tools that can help. Start knowing your teen’s financial personality through the Financial Identity Quiz. It is a research-based tool for teens and young adults aged 16 to 24.

After determining your child’s designated identity, you must discuss its advantages and disadvantages. Give some scenarios to help them decide better.

IDENTITY 1: THE PATHFINDER

As the name suggests, Pathfinders are committed to explore their own financial paths. This does nor mean that they do not need your guidance! From time to time, you must encourage thoughtful discussions about their financial goals. Where are they headed?

To give a distinct financial path, you must challenge your child to look for a positive financial model. It can be a professor, a blogger, an author, and so on. Discuss the steps taken by your child’s financial model. How does he or she plan to achieve the same path? Start by applying similar money principles as your financial model.

IDENTITY 2: THE NOMAD

Some people know their direct paths to success and others are still exploring. Not all those who wonder are lost, but the Nomad needs a little structure in his or her financial life. Help shape your child’s financial habits by finding an ideal financial path together.

Ask your child to do his or her research on a regular basis. You can train this by giving scenarios. For instance, ask what he will do if he showed up to an event without enough cash. Will he panic when faced with late fees via a credit card billing statement? Will he ask for your help when he missed a deadline for a school activity? Also, where will he buy gas when all the petrol stations are closed? These experiences can turn to teachable moments about financial obligations.

IDENTITY 3: TENDERFOOT

You may know a friend or two who has a Tenderfoot approach to money. A Tenderfoot has the most to learn when it comes to making financial decisions. You see, this type is so careful and conservative. This can be a good thing! However, being too careful can make you miss out on other opportunities. You need to take necessary and responsible risks along the way!

Help your children make their own financial decisions by asking what they will do when they are living on their own. Will they have a roommate or live with each other? What if they had an unforeseen medical bill or job loss? How will they raise enough money to survive? Discuss what they will do when help from a parent or a guardian is hard to reach. They have to take risks on their own.

IDENTITY 4: TROOPER

Last but not the least is the personality that echoes you the most – the Trooper. It is flattering to have your child follow in your footsteps. However, you also want to guide your beloved to make his or her own mark. What would be right for you might not be right for your child. Help your child to take ownership in money matters through discussions.

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Ask your child about the last time when he or she acted independently. How did it turn out? What was the problem and solution? How did he or she felt after taking the bold action alone? Then, make your child write down a list of personal priorities that he or she would accomplish alone. These priorities will be best accompanied by research. Help your child know which decision is the best one.

Source: smartaboutmoney

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Dark Attitudes On Money

“You can only become truly accomplished at something you love. Don’t make money your goal. Instead, pursue the things you love doing, and then do them so well that people can’t take their eyes off you.”
– Maya Angelou

Maya Angelou is right. Sprinkling love in what you do attracts accomplishments and money. Our attitudes towards money play an important part in either attracting it or driving it away.

Growing in a supportive environment where you can talk about money matters openly will enable you to attract money in various ways. On the flip side,it can be more difficult to attract money if you are underestimating your skills. Moreover, dark attitudes toward money can contribute to the lack of self-esteem and motivation.

Having a negative attitude towards money will hinder you from tackling opportunities and will steer you to make errors in your judgement. These may cause you to lose money in the process. Hence, it is important to identify your money attitudes.

Here are just some negative attitudes that you should stop:

I DO NOT DESERVE MONEY

Believing that you do not deserve money or that money is the root of evil causes you to avoid money. For people with this attitude, money can evoke feelings of anxiety and disgust.

I PRAISE MONEY

Believing that money can solve all your problems is a bad attitude to have. People who are trapped by this “money worship” attitude can carry an outstanding debt. Greed can course through your veins when you worship money too much.

I AM DEFINE BY MY WEALTH

Believing that self-worth is tied to your net worth is unhealthy. You can keep up with others as much as you want, but you cannot be fully satisfied.

I AM SECRETIVE ABOUT MY FINANCES

Lack of openness in one’s finances can potentially brew an issue between couples. While people with this attitude are often financially stable, they often do not allow themselves to enjoy the benefits of having money. Extreme cases of having this attitude can lead to under-spending and hoarding. Talk about extreme cheapskate!

Sources: 1 & 2

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