Posted in Debt, Life, money

5 Ways I Have Gained Control Of My Spending Habits

The poverty mindset is living with a flight or fight mentality

5 Ways To Gain Control Of Spending

I will admit I have a problem. Actually, more than one honestly. There were a good 30 days straight recently where I ordered something from Amazon every day. I knew I couldn’t afford to do this when I did it, but I did it anyway. I was choosing to live moment to moment. I had what I call the poverty mindset.

The poverty mindset, to me, means you live with a fight or flight mentality. You live each day as it comes with no preparations for the future. If you only have $30, you will spend it all on lottery and crab legs instead of being frugal. It is, in my mind, a survival mechanism. It is one I see all too often. When you are fighting for survival, immediate gratification is the only thing that matters.

Pay Rate

I implemented a rule of thumb in my spending that has made a huge difference for me. First, figure out the amount you get paid hourly. Then, before you buy anything, figure out how many hours you will have to work to pay for it. This method has been extremely beneficial for me.

Envelope

I like to experiment with budgets, but I’m pretty dead set on the envelope budget now. I think. It seems to have helped me the most save money on a near constant basis. This is because I see the envelopes as they dwindle away and I tend to cling tighter to the balances.

Lunch

I’ve said it before and I’ll say it again. Eating out everyday is the fastest way to go into debt. Those small amounts, done frequently, are the things that devastate your finances.

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Photo by Carlos Lindner on Unsplash

Separate Accounts

Set up separate spending accounts and allot yourself a set amount to spend. Do not go over it. This has also helped me. I can’t give myself an allowance in and stick to it when it is all in the same account. It also helps to hide money from my husband. I mean, my kids.

Credit

This one hurts. Allow yourself to buy absolutely nothing on credit. If you can’t pay cash, you can’t afford it. So, basically, I can’t buy anything unless I pay cash. Instead, every time I get a commission or unexpected sum of money, I gift myself with a little impulse buy.

I want to be responsible financially and also enjoy nice things. It is possible with rules in place.

In conclusion, as with everything, I will spend in moderation now so I can enjoy my retirement with less stress later.


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Posted in Finance

How To Make Money While Making Money

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Having money in an account is nice, but most financial advisors will tell you that if your money is not working for you, then you’re losing out on wealth.

Keep your emergency fund in your regular savings account so you have immediate and total access to it. Any savings beyond that need to be put to work earning for you.

Beyond that amount in your emergency fund, put everything else in a money making venture or account. Whether that be a CD, stocks, bonds, EFTs, or just an interest-bearing savings account. You want any of your money, that’s not being spent, to work for you. It needs to grow, not lie stagnant like my heart.

Another way to make money while you’re making money, is to invest in a vending machine or other business. Be a silent investor so you don’t have to do any of the work or maintenance. Just sit back and let the money come to you. Then, put your profits in an interest-bearing account or another investment opportunity.

I also like to make money by buying a piece of furniture, flipping it and selling it for a profit. I only buy one piece at a time, so I don’t overextend myself physically, creatively, or financially. I have made good money at this. Custom painted furniture and mosaic furniture is all the rage.

COVID has affected our economy, but not all in bad ways. Now is a great time to buy real estate, if you are able to qualify. Qualifications are a little harder, but it’s a good time to buy and a great time to sell if you need to liquidate some assets.

Also, consider your education as an investment for your money. Take a class, get that degree, get that training, or just become educated. The more skills you have, the better.

Knowledge is power. I firmly believe that. The day you stop improving yourself and your life, is the day you really die.