When it comes to trying to manage your money better, small changes are often more effective than you might think.
And for a good reason: our small consumption habits or sometimes unconscious purchasing behaviors are very often the global reflection of our bad relationship with money.
To improve your financial situation, you must first of all, change your philosophy.
Trying out these 10 easy-to-use tips will help you build habits that can have a significant impact on your financial success, without getting discouraged.
Set aside regularly:
Of course, everyone would dream of being able to save as much money as possible without ever impacting their lifestyle.
And precisely: often, the problem comes from the fact that we think that to save, we should either have a salary large enough to put money aside or sacrifice everything that pleases us in the name of our savings account.
This is, of course, completely wrong: the goal is to save what you can, no matter your financial situation. Whether it’s an automatic monthly transfer of just a few dozen euros to your savings book or 10 € that you found in your pants, all these small contributions will ultimately have a significant impact over time.
Thinking about saving before you spend will allow you to save money without requiring exceptional effort. So decide today how much you want to set aside each month, no matter how small, and focus on consistency.
Create a financial plan:
A financial plan is a vision of the economic situation you would like to achieve at any given time. It can deal with everything: the amount of your salary, savings, investment.
To create your financial plan, ask yourself the following questions: ” where do you want to be in five years?”, and ” what do you need to do financially to make it happen?”.
Do you have a goal of buying a house? To move abroad? To have children?
We take here 5 years as an example, but it can, of course, be the duration of your choice.
However, stay focused on the long term (for the goals of the coming months, this happens in your monthly budget ).
Build a monthly budget:
Budgeting is one of the essential tools for managing money well.
Yet few people take the plunge into creating a detailed budget.
Like them, do you think that your expenses are simple and that as long as you pay your bills on time, there is no point in bothering to track each of your costs?
Without a budget, it is often tough to make real savings in the long term.
Among other things, your budget will help you find areas where you can reduce your spending to invest more in savings or in financial goals that matter to you.
The goal is not to stop making yourself happy, but to determine if you sometimes go over the limit a little for purchases that, in essence, contribute little to your long-term happiness.
Read a book on personal finance:
The problem with personal finance is that you learn little (if anything at all) about it in school.
The result: young adults are propelled into a life of bills to pay and budgets to manage without any notion of what is and is not harmful to their wallets.
There are, however, an incredible number of diverse and varied books on budget management and financial education. Reading just one of them can give you knowledge that will serve you a lifetime. Also, these books often allow approaching a subject that can seem very complicated in a way much more accessible to the newbies of finance.
Buy used more often:
Cars, furniture, clothes… you can almost always find what you want and pay less by buying second-hand items.
Today, the occasion has too inglorious an image compared to the incredible advantage offered by this second-hand market. And in addition to making significant savings, you help reduce waste and waste.
Get in the habit of looking first for the items you need in used versions: you can save hundreds or even thousands of dollars each year.
Cancel unnecessary subscriptions or fees:
Too many of us regularly pay subscriptions, subscriptions, or monthly payments for services that we use little, if at all.
It could be a magazine subscription, gym fees that are too little used (we can see you), membership in an online service, or other subscriptions to which you subscribed and then immediately forgot. Go through your bank statements or your budget, and take the time to cancel the services you are not using.
Save for the future:
In addition to saving for retirement, it’s essential to set aside money for any other expenses you may have in the future.
Saving upfront for expenses like buying a new car, for example, can save you money on interest when the time comes.
You can never be criticized for being over-prepared, but not planning your expenses can force you to make poor financial decisions under stress. Managing your money also means knowing how to prepare for the future.
Focus on career development:
Young or not, it is always important to stay focused on your career prospects.
It takes time and works to progress. But without goals, it’s hard to achieve something concrete without just being opportunistic.
Set clear goals and figure out what you need to do to achieve them. Whether it’s changing business (significantly to increase your salary ), retraining, or starting professional training, break down the stages of the career path you want to follow and start putting in place concrete actions.
Build an emergency fund:
No matter your financial situation or lifestyle, having an emergency fund is essential. If you lose your job or have to face any hazard in your life, the emergency fund can very easily save you the day – and save you many sleepless nights.
A good goal is usually to set aside between 3 and 6 months of expenses. This will give you time to get back on your feet without too much pressure.
Generate new sources of income:
Receiving your salary is generally a rather pleasant time. What if you could get two or three a month? Many ways to build additional income are now available, whether teleworking or via small jobs on the internet.
If you have a particular talent or hobby, why not try to generate an income stream from it by devoting a few hours of your weekend to your passion?