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5 Steps To Healthy Spending Habits
Barbara Gibson
Next to our physical health most of us are primarily concerned
with our financial health, and with good reason. Although our
intentions are usually great our follow-through and discipline
generally isn’t. Mere mention of the word budget or cutback
sends us into fits.
Healthy spending habits need not be synonymous with deprivation
– a bad word in our “you deserve it/you’ve earned it culture.”
Those interested in cultivating more healthy spending habits
will be happy to know that rehabilitation is painless.
Step 1.
Start with a spending log. Yes, you have heard this advice
before. This exercise is eye-opening if you do it diligently.
If you have been unable to keep such a log because it is
tedious or difficult to remember, consider using your debit
card for every purchase. You can find the Visa/Mastercard logo
nearly everywhere you shop or buy, including many fast food
spots. With online banking you will have access to a visual
record of all your spending. This is a great way to begin to
spot patterns and decide where you can cut back.
Step 2.
Analyze your online account statement (four weeks is ideal) to
help you determine where your money is going. Most credit
unions offer to the minute transaction information. Review your
log without judgment. What you have done, in terms of your
spending, does not matter – at least not yet. What does matter
is that you get a firm hold on your expenses. For example, how
much money do you spend on coffee each week? Dry cleaning? Take
out? Movies? You get the idea.
Step 3.
Next, write down all sources of income. With a list of your
income and expenses in hand determine your priorities. Begin
your budgeting process here. Obviously housing and other fixed
costs will figure prominently on your priority list. Now, take
a look at the conveniences that represent variable expenses.
This is likely where you will find room to make changes. For
example, if you subscribe to a video service can you get the
two DVD plan instead of the three or eight DVD plan. If you buy
coffee each day, can you bring it from home a time or two each
week? Or would you be willing to purchase a smaller or
otherwise less expensive cup? Can you clip coupons or eat out a
little less?
Step 4.
Write a budget in pencil. Writing in pencil will help you
remember that your budget is a fluid document. As you live with
it you will probably need to make changes. That’s okay. You may
even want to include a little mad money each month. It is far
better to blow a budgeted $20.00 than it is to impulsively
fritter away $200.00.
Step 5
Set a savings goal and make it something specific and
important. A meaningful savings goal keeps feelings of
deprivation away while providing the motivation you will need
to stay on track. Be patient with yourself if you do get off
track. If it helps, try writing your goals down and posting
them or maybe even carrying a picture that represents your
goal. Refer to these as often as you need. It may also be
useful to try to determine what emotional need your spending
fills for you and look for another way to get your needs met.
Remember, developing a new habit takes practice. In time you
may even learn to love your new healthy spending habits. It is
liberating to be in control of your finances. So, go ahead,
clip those coupons. Write your budget and honor your savings
goal. That (insert your goal here) can be in your future if you
decide to make it happen.
About The Author: Barbara Gibson publishes monthly for
http://CreditUnionRate.com The Leading Credit Union Directory.
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