Stop buying things you don’t need.
I often wonder why some people seem to be bad with money. They spend it on expensive things that only marginally make them feel happier. They buy things they can’t afford. Some spend all their money in a given month only because they can. They could save, and will even mention how they could legitimately save by doing x, y, z.
Then they don’t execute the plan. They see they have money left and decide to go spend it. When their money runs out from going out to eat or drinking too much or buying things they don’t need, they stress about not having enough money anymore. There isn’t even a net happiness gain. You spend money on things you think you want or will make you happier to have, then realize you’re stressed or unhappy that you don’t have money.
I feel that I’ve never really had that problem. Maybe it’s because my parents emphasized this to my brother and me from a young age. I’ve also read Dave Ramsey’s book The Complete Guide to Money. My father gave it to me for Christmas several years ago and I read it per his suggestion. While it was useful, I found that I already exercised most of his ideas and principles.
I save money as much as I can. I budget for unexpected costs. I budget for groceries. I budget for fixed bills. Most importantly, I budget for room to save money where I otherwise wouldn’t. This way, I should always be coming in under budget, minus months where there are unforeseen high costs or necessary purchases (i.e. medical costs, car maintenance etc.)
It’s not hard to create a budget. It also helps to give you an idea of how much you could save over a month or a year, were you to only adhere to this budget consistently.
Managing your money responsibly, saving, and creating a solid, feasible budget not only improve your fiscal outlook, it improves your mental well-being. You don’t have to stress if you know what you have to do and how much you can spend.
Improve your wealth. Improve your mental health. Reduce your stress.
If you are one of those people who lives paycheck to paycheck, spends too much, or feels that they can’t control their spending habits, create a budget and track your expenses. If you can adhere to a reasonable budget, you’ll prevent yourself from wondering if you have enough money to do or buy something and you can take control of your finances.
You will be happier. Try it.