29 May Simple and Powerful Ways To Stop Money Anxiety
Money is much like a puppy, exciting to have, yet can cause absolute havoc if not trained. From ripped clothing, chewed furniture, upturned bins and wee on the floor, it’s not something you would like to have continue happen and, without doubt you invest time and planning into puppy training so you can gain back control. Money is very similar, if not monitored or controlled it can cause havoc and create a mess that can take years to clean up.
Here are 4 ways you can train and better manage your money so you are the one in control:
Know exactly where your money is going
With the popularity of PayPass, online purchases and recurring subscriptions it’s very easy to make small but regular purchases that add up. Scrolling through Facebook and Instagram provides us with a variety of opportunities to click on and advert and find ourselves logging into PayPal to purchase something we had no desire to have, let alone need. Recurring subscriptions for programs, publications and software that we rarely or never use can further drain our bank accounts.
It’s a good idea to review your bank statement daily, or at least weekly and identify the expenses that can be stopped. Using a program like My Prosperity will help you manage your money beautifully. By linking up your bank accounts, credit cards and loans your transactions get fed daily into the portal, give you an accurate picture of what you are spending and letting you create an easy budget.
Create a budget and stick to it
As unexciting and tedious as it sounds, having a budget is vital if you want to manage your money. It will highlight expenses that can be reduced or eliminated, curb over spending and help you find additional funds that can be redirected to reduce debt and/or increase wealth. It also removes the guilt from spending if you know it’s in your budget!
Avoid funding your lifestyle on your credit card
When we receive a new credit card in the mail with a massive spending limit it’s tempting and easy to go on a massive shopping spree. Forgetting it’s not our money but the banks, the desire to book that holiday we ‘so deserve’ or purchase overpriced luxury items we want is so tempting. It’s fine if we have the cash flow to pay off the card and avoid interest but if we don’t, that well deserved holiday can end up costing you triple the amount you initially purchased it for. If you can live without a credit card you are a super star! If you really, really want one then consider getting a very low limit that can be paid off on time.
Pay down your bad debt
If you have lived on credit and racked up a painful balance that makes you want to cry when you receive the statement, the best thing to do is stop using it and pay it off fast. Cut it up, burn it, bend it, do what ever you have to do to make it unusable. If you don’t want to put a temporary hold on it then drop the card in a tub of water and pop it in the freezer. That way you won’t have easy access to it.
In the case of having a few credit cards and or a loan account pay off the one that has the highest interest rate. Alternatively, speak to a professional about rolling balances into a low interest loan and put a plan of action in place to pay it down fast.
Bad money management and debt can cause huge anxiety resulting in sleepless nights, failed relationships and at worse, sickness. The joys of instant gratification are nowhere near as powerful and satisfying as those of financial stability and freedom. Once you decide that you want to manage your money to create and not sabotage your wealth, it’s time to work out a plan and begin to take action. It may seem like a big leap but each and every baby step in the right direction will bring you closer to achieving your financial goal.