|
Home / Business
5 Steps To Healthy Spending Habits
By:Barbara Gibson
Next to our physical health most of us are primarily concerned with our financial health, and with good reason. Although our intentions are usually great our follow-through and discipline generally isn’t. Mere mention of the word budget or cutback sends us into fits.
Healthy spending habits need not be synonymous with deprivation – a bad word in our “you deserve it/you’ve earned it culture.” Those interested in cultivating more healthy spending habits will be happy to know that rehabilitation is painless.
Step 1.
Start with a spending log. Yes, you have heard this advice before. This exercise is eye-opening if you do it diligently. If you have been unable to keep such a log because it is tedious or difficult to remember, consider using your debit card for every purchase. You can find the Visa/Mastercard logo nearly everywhere you shop or buy, including many fast food spots. With online banking you will have access to a visual record of all your spending. This is a great way to begin to spot patterns and decide where you can cut back.
Step 2.
Analyze your online account statement (four weeks is ideal) to help you determine where your money is going. Most credit unions offer to the minute transaction information. Review your log without judgment. What you have done, in terms of your spending, does not matter – at least not yet. What does matter is that you get a firm hold on your expenses. For example, how much money do you spend on coffee each week? Dry cleaning? Take out? Movies? You get the idea.
Step 3.
Next, write down all sources of income. With a list of your income and expenses in hand determine your priorities. Begin your budgeting process here. Obviously housing and other fixed costs will figure prominently on your priority list. Now, take a look at the conveniences that represent variable expenses. This is likely where you will find room to make changes. For example, if you subscribe to a video service can you get the two DVD plan instead of the three or eight DVD plan. If you buy coffee each day, can you bring it from home a time or two each week? Or would you be willing to purchase a smaller or otherwise less expensive cup? Can you clip coupons or eat out a little less?
Step 4.
Write a budget in pencil. Writing in pencil will help you remember that your budget is a fluid document. As you live with it you will probably need to make changes. That’s okay. You may even want to include a little mad money each month. It is far better to blow a budgeted $20.00 than it is to impulsively fritter away $200.00.
Step 5
Set a savings goal and make it something specific and important. A meaningful savings goal keeps feelings of deprivation away while providing the motivation you will need to stay on track. Be patient with yourself if you do get off track. If it helps, try writing your goals down and posting them or maybe even carrying a picture that represents your goal. Refer to these as often as you need. It may also be useful to try to determine what emotional need your spending fills for you and look for another way to get your needs met. Remember, developing a new habit takes practice. In time you may even learn to love your new healthy spending habits. It is liberating to be in control of your finances. So, go ahead, clip those coupons. Write your budget and honor your savings goal. That (insert your goal here) can be in your future if you decide to make it happen.
About the Author
Barbara Gibson publishes monthly for
http://CreditUnionRate.com
The Leading Credit Union Directory.
Search, Find, Join.
Digg
del.icio.us
Blink
Stumble
Spurl
Reddit
Netscape
Furl
Article Source: http://www.articles2k.com
|
|
| Top Business Articles |
- 1). A plus C Systems and Affirmative Insight, Inc. announced an exclusive partnership. By : Bartosz Lewandowicz
Affirmative Insight Inc. provides information technology solutions in the areas of IT security, networking, service and support, e-business, web design, web hosting and software development. By partnering with A plus C Systems, Affirmative Insight, Inc. expands its offer with a comprehensive suite of software products – Uplook, Statlook and Anasil – tool kit for IT asset management and network monitoring.
|
|
|
- 3). The Thick Line Between Buddy And Boss By : Tim Knox
Q: One of my key employees is giving me trouble. He has started showing up late for work and has developed a bad attitude in general. The rest of my employees are complaining since they are having to take up his slack. I've tried talking to him, but he doesn't seem to listen. To make matters worse, he has become one of my best friends since I hired him five years ago, so firing him is out of the question.
|
- 4). The Man Who Makes $1 Million in Affiliate Commissions By : David Kamau
His success is phenomenal. Well, not many can claim to make $1 Million a year in affiliate marketing. And at only 27 years of age!
His name is Jeremy Palmer. Until recently, he was virtually unknown in the marketing circles, simply because he preferred to make his money silently.
Now this Jeremy guy has written an ebook about his affiliate marketing techniques.
|
- 5). Overcoming Obstacles By : Debbie Milam
Discover how a young woman overcame serious life challenges through connecting with her inner spirit.
My story begins 38 years ago in Queens
|
- 6). International Investment In Bulgaria Still Strong By : Tim Wright
The strong growth in the Bulgarian economy is continuing and this is emphasised by the confidence in the market shown by companies such as GE for example.
GE Commercial Finance Real Estate recently announced it will be acquiring a 50% stake of the Mall of Sofia. The Mall is an enormous trade, business and entertainment centre currently under construction in the heart of the capital city.
|
|
|
- 8). Should we believe the experts? (Part III) By : Mike T. Davis
Why do we use experts? To predict the future. Consider a patient who is asking a physician about the future effects of a certain drug, or the investor who is asking a stock analyst about the future prices of a certain stock, or the manager who is asking a human resource manager about the future performance of a certain candidate, or the brand manager who is asking a market researcher about the future sales of a certain new product.
|
|
|
|
|
| New Business Articles |
|
|
|
|
|
|
|
|
|
|
- 6). How To Find Low Cost Items That You Can Resell For Profit By : Gregg Hall
The key factor in the success or failure in a business that specializes in closeouts, liquidations, or selling products on eBay is finding items at good prices that you can make a profit on when you resell them. Contrary to popular belief it is when you buy the item that you make your profit as what you pay for something is what determines how much your end profit will eventually be.
|
|
|
|
|
|
|
|
|
|
|
