Written by Nicole Ayub, Personal Finance Coach
Nicole Ayub's passion is to help people have a healthy relationship with their money & reach their financial goals. This led to her becoming a personal finance coach & launching her brand Wall Street Girl Next Door. She currently works on Wall Street where she sees her industry overlook the everyday person & not address people's emotional behaviors which drive their financial decisions.
If you are someone who spends more than you save, then here are a few tips on how you can shift your behaviors. There is nothing wrong with spending money if it is done responsibly and you are saving for your future at the same time. A common theme I see with most people is they spend without saving. I hear a lot of “I do not have any money left over to save.” This means you have your financial priorities backwards.
5 tips to help you make the shift
1. Track your spending
Tracking your spending is one of the most important aspects of shifting your spending habits. Whether you track your spending via an Excel spreadsheet or by downloading a budgeting app, find a way that works best for you and will keep you consistent. I personally use the Rocket Money app on my phone to track my spending.
You cannot shift your spending habits if you do not know what they are. Tracking your spending will give you transparency into your habits and behaviors. It also holds you accountable and keeps you on track with your goals.
2. Set clear goals
Setting goals gives your money direction and purpose. If you do not have defined financial goals, then your money will be going in all different directions. You want to have clear goals with dates and amounts attached to them. An example would be saving $2,500 in six months for your emergency savings fund. You would need to save $417 per month. You can break that down to $104 per week or $209 per paycheck if you are paid bimonthly.
Keeping track of your progress is key. Seeing the progress you are making towards your goal will give you momentum and will help you stay the course.
3. Automate your money to pay yourself first
Paying yourself first means that you automate your money to go where it needs to go as soon as you are paid and before you start spending it. An example of this is to have a portion of your paycheck deposited into your savings or investment account on payday. The more you automate the easier your financial life will be, and it will help you stay consistent.
4. Stay consistent
Consistency is key if you want to see lasting results. You cannot track your spending for one month and then expect your financial circumstances to change.
Changing habits and behaviors takes time and staying consistent. This is where having support can make a significant difference. You can make tremendous progress when someone is holding you accountable and keeping you on track with your spending and goals.
5. Shifting your mindset
You cannot shift your habits and behaviors if you do not shift your mindset. A spender's mindset is on today while a saver's mindset is on tomorrow. When looking at your spending you need to decipher what is a want and a need. Needs are things that we need to survive, while wants are things that would be nice to have but we do not need them. You must start pausing before making purchases and checking in with yourself on what is driving your purchase. This is a muscle that you build over time. At first you will need to be intentional with your spending and then it will become habitual. Your mind will start thinking of your goals and if your spending is getting you closer or farther away from your goals.
Shifting from being a spender to a saver can change the trajectory of your financial circumstances. It is never too late to shift your habits and behaviors. You can start today with where you are and what you have. The most important part is starting. By following these tips and consistently practicing good financial habits, you can successfully transition from being a spender to a saver. Remember, the key is persistence and making incremental changes that add up over time. Schedule a free consultation if you need support with shifting your habits with money.
Read more from Nicole Ayub
Nicole Ayub, Personal Finance Coach
Nicole Ayub's passion is to help people have a healthy relationship with their money & reach their financial goals. This led to her becoming a personal finance coach & launching her brand Wall Street Girl Next Door. She currently works on Wall Street where she sees her industry overlook the everyday person & not address people's emotional behaviors which drive their financial decisions. Nicole's goal is to bridge the gap for people who do not qualify for financial advising & give them the support and resources they need to make healthy financial decisions. Through this brand she is bringing awareness to people’s relationship with their money on an emotional & mental level so they can achieve financial freedom.
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