How to control your finances

If you still do not know how to spend money and you spend more than you should, these tips should help you to control your finances. Each of these habits is equally important:

Think about it well before you reach out for the wallet!

It is the easiest to open a wallet and pay it, cash or card. Much harder is the other way – stop and think if you really need this expense. Try to train yourself to think about whether you can survive without a new shirt, a new mixer (and the old one is still working), should you have a full bag of sweets, do you even need to go to the store and be tempted to spend money.

Write down all your expenses

Create a home budget table and write your expenses. If you bought a shampoo today, just write down how much you’ve spent. As you go from one store to another, write down everything that you bought. If you do not know how to keep accounts, write down your costs.

Talk to your family members and let them do the same. At the end of the month, sit all together and enter the costs in the table.

Check your bank account often

You know when you get a salary and that’s enough for you? Check your account at least once a week. Let that become a habit. You’ll better control your spending. You will know if you can still spend or you’ve reached the limit.

Do not let the ads affect you

The advertisements have a great impact on us, whether we want to admit it or not. In the beginning, advertising can be sometimes funny to you, but sooner or later you will probably buy that product. Well, don’t. It’s easier not to look at them at all. When you are at the store, compare the prices. Do not buy something just because you saw it in the advertisement.

Make a wishlist

When you want to buy something, write it down in the wishlist. Then wait a while. If you are still sure that you need that thing, buy it. But only then!

Start saving today

Do not think that you will start saving when you have more money. Savings are $ 10 as well, so start saving today. And then, when you have more money one day, you can save more.

Avoid paying with a card

If you’ve been paying for even milk by card until now, stop with that habit. Start paying by cash because you will have more control over your costs. Besides, cash has its psychological effect as well, seeing and feeling the cash go. Make sure to pay off all your loans, starting with small ones,  and avoid making new ones. 

If you want to become financially free as soon as possible, it’s time to change your relationship to money. And this is not so difficult because everyone can and must know how to control their finances. We live in a consumer society where it is easy to lose control over finances. So all you need is a table, a little time, and a little bit of good will to do it.

By Tomislava