Being disciplined with money is a tough problem that a lot of us deal with. It is very easy for our money to flow through our fingers like water mainly because we live in an era where there is a surplus of things that we can buy at our fingertips. Financial discipline is a continuous process that requires a lot of commitment and determination if you want to stop the money drain. These tips will help you reach your goals
- Set your financial objectives.
It can be extremely difficult to be financially disciplined if you do not have clear and well laid out goals that you want to achieve. Knowing why to save gives you an idea on how to save. You need to set out your short term, midterm and long term goals. Short term goals are more immediate expenses like paying some money to your emergency fund, travel, home repairs and paying off your credit and debt payments. Long term goals involve more money and more attention and may take several years to achieve. They may involve becoming astute at investing or determining the best avenues to save. Mid-term goals fall between short term and long term goals.
- Determine needs and wants
Remember the goal is to make sure you spend when necessary. You need to draw a line between needs and wants because there are things we all want but don’t necessarily need. These things can throw us off track so fast and deep that it can be hard to get back on track.
- Set a realistic budget
Having a realistic budget in place will make it easier to make financial decisions even when you feel an urge to spend on a want. Budgeting will help you cut off your wants as you save more towards your financial goals.
- Track what you spend
Sometimes you might not be able to resist the urge to spend. Once this happens, make sure you track what you spend and make sure you avoid slipping again and spending on the same item.
- Avoid peer pressure to spend
Friends play a huge role in increasing our spending. I know you want to have fun and enjoy life while you can, but if you can avoid spending on something then avoid it at all costs. Instead of having three or four drinks a night cut it to one or two; make dinner at home instead of eating out, you get the drift.
Choose your friends wisely. If you have friends who are spendthrifts, you’re more likely to splurge too.
- Create a savings account and save a set target amount monthly
There is always room to save something even if it is a very little amount. Remember that with time it could add up to something significant. Treat this amount like a monthly bill that needs to be paid so that you can avoid spending it. ABC Bank offers the PureSavers account, an account that offers some of the highest interest rates on your savings in the market currently. Click here for more
- Don’t compare your goals to others
What works for others may not necessarily work for you. That is why you need to refrain from comparing your savings goals to others. Just stick to your financial goals and work towards achieving them.
- Keep learning
Financial discipline is a process that needs you to keep learning creative ways to budget and stay updated on how to manage your finances better. You might end up trying different financial plans in order to find one that works best for you.
- Ask for professional help
You may think you know it all when it comes to budgeting and financial hacks, but you may learn more from a financial advisor. An advisor will help you make better decisions and improve your current financial management hacks. ABC Bank offers dedicated Relationship Managers to help you align the best products to meet your goals, whether they relate to saving or investing.
Acquiring financial disciple is not easy but if you are consistent, you will definitely get there.
Want to start your saving journey? Then ABC Bank is your best bank or save or invest with.
Visit www.abcthebank.com or contact us via talk2us@abcthebank.com or 0701 700 700 for more information and you will be guided on how best to cultivate a financial discipline based on your personal financial needs and budget.