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February - Spend Wisely

February - Spend Wisely

| February 07, 2017

You have envisioned your long-term goals. Now it’s time to focus on creating good spending habits.

We’ve all heard it’s important to create and stick with a monthly budget. 

But why?

A successful money management plan can:

  • shift your focus away from eliminating debts, toward building wealth.
  • arm you with the tools necessary to cut down on wasteful spending, so that you may achieve your long-term financial goals.
  • build confidence in your financial security by freeing up resources for an emergency fund.

No matter where you are in your financial journey, having a full picture of your spending habits can help you maximize your savings potential.

Take some time to evaluate your current expenditures.

Over the next few months, track individual expenses, large and small. This process is essential to fully grasping how small things can add up quickly. You might find it helpful to try utilizing a budget planner such as Mint, mvelopes or Penny – available online or in the App Store.

  • Stay tuned to our blog for tips on these apps.

Once you have a clearer view of your overall financial picture, set attainable limits on your spending. Begin cutting out unnecessary purchases. Try substituting certain items for less costly options. A few examples? Try making your coffee at home instead of going out to an expensive chain. Consider getting a less expensive cable package and spend more time doing things you love. It’s okay to splurge once in a while; just stay mindful of how quickly small purchases can add up.  

Budgeting has to become habitual in order for it to be effective. Begin to realize the difference between needs and wants. Place a small sticky note on your debt or credit card with the question, “Do I really need this item?” Continue to ask yourself, “Does this purchase help me reach my long-term goals?”

It can be difficult to limit yourself, so make sure to celebrate your achievements. Sacrifices now will be well worth it.

  • If you feel you have mastered budgeting, talk to your kids or grandkids about best practices.

Now that you have saved some money, let’s try to make it multiply. Contact us today, and let’s discuss your options.