Be smart with your money

Achieving financial success is not something that just happens. For the average person like you or me, it comes from a series of small steps you take over a long period of time. With each step, you form a new smart money habit towards financial independence. Let’s take a look at smart money habits you can start today to get you closer to a financially independent future.

Avoid being “penny wise but pound foolish”

It’s tempting to try saving a couple cents here and there when buying small items. However, that’s not where the real money is saved. You’re putting in extra effort for something that doesn’t move the needle.

You get the most bang when you’re able to cut down on your bigger bills. For example, finding a small house which can meet your needs, cutting your transportation bill by purchasing a cheaper car or taking public transportation can provide large gains.

It’s a much better use of your time than trying to pinch pennies here and there on smaller purchases.

When you want something big, wait

Impulsivity can get you in trouble in most aspects of life. Finances are no different.

It’s human nature to see something and want it right then and there starting from the childhood and continues on through adulthood. For example, you want a new car and you are searching for that and see a lot of attractive options. Here’s where you have to take a step back. Your newfound obsession is clouding your judgment. Rather than giving into the impulse, wait it out. Often, a funny thing happens.... you may forget about it or you find that the new car wasn’t a need at all.

The impulse faded. And you just saved yourself a ton of money.

Live smaller than you can afford

You finally get that big raise. And you want to celebrate because you’ve been looking forward to this forever. That’s fine, splurge a little. However, make it a one-time deal and be done. Don’t get caught in the trap that just because you’re now making more money, you should spend more.

Too often, people get more money and feel like those gives them the means to buy a bigger house, a bigger car… you know the drill. Resist.

The fact is that living smaller than what you can afford is one of the fastest ways to build savings.

But if you constantly upgrade as you begin to make more, then you’ll never get ahead. You’ll just build up more debt along the way and have just as little wiggle room as before.

Practice smart grocery shopping

Food is one of the biggest portions of any budget. But there are a few things you can do to ensure that you stay smart with your money when buying groceries.

Create a grocery budget

Set a strict weekly grocery budget. Plan your menu and list your grocery according to that. Now you know how much you can spend on groceries.

Once you know what all you need, you can go shopping and keep a running tally as you shop to ensure you’re on track.

Writing down the list would probably work best for most people.

Make a list… and never deviate

Never go to the grocery store without a list. If you are not well-researched, you may don’t know what the sales are. As a result, you’re going to make decisions on the fly.

These impulse decisions will lead to overspending, which will derail your grocery budget.

Eat before going grocery shopping

It’s also important to eat prior to going to the grocery store. Hunger is a powerful force to make you buy a lot of ready-made, processed snacks.

However, when you eat prior to shopping, then you’ll shop with a clear mind. Your hunger won’t cloud your judgement, influencing you to make poor decisions t buy a lot of unhealthy pricy processed foods.

It’s a baby steps… And baby steps can start now!

Anyone can get smarter with their money. But remember, it doesn’t happen all at once. Begin by fighting your impulses. Prepare for the week and be smart at the store. And cut monthly expenses like memberships of gym or subscription of channels. Hope this article will change your lifestyle and prep you for a financially independent future.