Set financial goals and ask yourself Why
With any area of my life, I have found it is very important to set goals. In the case of finances, you want to make sure you have purpose behind your penny pinching. If not, you will find that you fail so much more easily because there is no purpose or reasoning behind it! When we had debt, our reason for frugality was to be able to pay off the debt as quickly as possible. Since we’ve been debt-free, our reasons have become a little more fun, such as saving to buy a home, travel and vacations, and making memories.
Create a budget and check in with it!
Use the envelope system
We have also discussed just how helpful and effective the envelope system is before, but want to reemphasize just how much it will help you to be successful in your finances! It helps you take control of your spending and be more conscious of where your money is going. There was a study done that shows consumers who pay with credit cards focus more on the benefit of their purchase, while those who pay cash concentrate more on its cost. That is because there is an emotional pain associated with handing over physical currency, as opposed to swiping a credit card where that money is out of sight and out of mind. There are so many benefits to using the envelope system and I strongly encourage you to look more into it here!
Look at every purchase as an investment
Identify your spending weaknesses and address them!
By having a budget and tracking your spending you should be able to account for every dollar. Take a look at your expenses and see where you are unnecessarily spending. For some this is picking up unplanned and unnecessary items at the grocery store, online shopping, or buying a soda every day. Whatever your weakness may be, come up with a few ideas on how to combat them. If you find yourself always throwing extra things in the shopping cart at the grocery store, maybe try ordering your food online and picking it up! This way you track your spending while you shop and can resist impulse buys. If online shopping is your downfall, try unsubscribing from the shopping email lists, or following shops on social media that make you want to spend spend spend!
Read books or listen to podcasts that will help educate and motive you financially