If you’re looking to improve your finances—and many of us are—then you might need to develop some money-saving mindsets. Through smart thinking and frugal wisdom, you can make better financial decisions, protecting the money in your bank account.
Seriously consider the following money-saving mindsets and allow them to filter through your thought process. You might be pleasantly surprised at the effect they have on your finances.
Mindset #1: It could happen to me
Your car breaks down when you’re halfway across town. A sudden change in weather lays waste to your home. You lose your job and find yourself on the unemployment line. And you could fall prey to any other types of disaster, each one of which could eat into your finances.
However, when you know how to save money, you will do the sensible thing. Knowing that disaster could strike, at any time, you should have the impetus to manage the money you have in your life.
Rather than spending it on frivolous luxuries, you put your money in an emergency fund to protect you from financial harm. Not only will you have the money to get you out of trouble should you need it, but you also won’t have to dip into those savings that you might be using for your bucket list goals.
If you don’t currently have an emergency savings fund and need help starting one, Trim can help you out. Trim will set up a high-yield savings account that gives you a 4% annualized bonus on your first $2K. Pretty great, right? Start using Trim today.
Mindset #2: Live for tomorrow and not for today
Many of us could not care less for our needs and wants tomorrow and have that “live for today” mentality. We spend what we want when we have the money available, we enjoy life in the present, but then regret our spending choices when we realize we don’t have the savings to support our future lifestyles.
Remember to live for tomorrow. Think twice before spending on things you don’t need and put any surplus money you have into your savings.
Think about those bucket list dreams you have, such as moving to a better part of town or going away on a luxury holiday. And think about your future needs and how they relate to your finances, such as college courses and future retirement.
None of these things will be possible unless you have that money put away into accommodating your needs and wishes, so save your money for tomorrow instead of squandering it today!
Mindset #3: I always have more to learn
To successfully manage your finances, you need to educate yourself. You might take a budgeting course online at Udemy or pick up a book on personal finance. You could read also money blogs online and check out the financial tips that we have on our website.
For example, you can read our article Why You Need To Create A Money Saving Chart Now to help you be smart with your savings.
No matter how savvy you think you are when it comes to your finances, there’s always more to learn. Don’t miss out on financial wisdom out there that could help you take greater control over the money you have in your life. Educate yourself and practice the lessons you learn in real-life situations.
Mindset #4: There’s always a better deal
Chances are you are already good at finding deals. Maybe you scour the shelves of your local supermarket for bulk items and discounts. You might use price comparison services when looking to switch to a cheaper utility provider. And you might operate similar financial wisdom when looking to buy insurance.
If you do these things already, then that’s excellent news: it’s part of being frugal. That is good news for your finances.
But if you don’t bother to look for those better deals? Well, you are wasting your money.
No matter your level of frugality at the moment, that there could be a better deal waiting for you. Remember to shop around before coming to a decision. For example, you might miss out on the deals on your phone bill from SMARTY mobile if you don’t make an effort.
Another example of a way to be frugal is double-checking that you are taking full advantage of all your subscriptions and that you are being charged fairly for your monthly bills. Trim can help you find and cancel unwanted subscriptions to instantly save you money. Also, they will negotiate your major bills on your behalf to ensure you only spend what you have to.
Mindset #5: It’s okay to ask for help
Some people are too proud to ask for help. Rather than admitting weaknesses, they struggle through life in silence and limit themselves as a consequence.
While this can be applied to all kinds of things, let’s take a look at how this reluctance to ask for help can affect your finances.
If you’re struggling with debt, you might never get out of the hole you’re in if you don’t ask for help, be it from a professional or a personal friend. And if you’re terrible at budgeting your money, you might make all kinds of financial mistakes if you don’t ask somebody for help. These are just a couple of examples.
There are professional agencies set up to help people with their debt and budgeting problems. Additionally, there will be people in your life who might be only too happy to help you with any issue that is affecting your finances. Swallow your pride if you need to, admit that you need help, and seek it out.
Mindset #6 Be Proactive In Refinancing
When it comes to your mortgage and property payments, it’s always worth looking at what else is out there. With a mortgage refinance calculator, this can come in handy when you’re trying to save yourself a bit of money here and there.
Be proactive in refinancing your home or saving more on your bills where you can as this will be an extra contribution to your savings as a result. It might be a bit of a hassle to do but it’s going to be something that benefits you.
You can also refinance things such as student loans. Learn more with our article Is It Worth It To Refinance A Student Loan?
Mindset #7: Free money doesn’t mean free spending
Most of the money in your bank account will be your earnings. However, there might be times when you come into money that you haven’t worked for. It might be a cash bonus from your boss at work, winning a lottery, or a birthday gift. You might even find money that has slipped down the back of your sofa.
But here’s the thing.
When you suddenly have more money than you thought you had, don’t automatically spend it.
Think about any financial needs you have—credit card bills, loan payments, and any necessary purchases—before considering those luxury items on your wishlist. Consider your emergency fund and your saving goals too. It’s about making priorities in your life.
While you will be rejoicing when you come into free money, remember that you will be celebrating well into the future if you invest it wisely.
Mindset #8: I could be earning more
Now, if you’re a multi-millionaire, the prospect of earning more money might not be of interest to you. However, let’s assume you aren’t living on a mountain of riches
Even if your job is reasonably well paid, that extra money could come in handy when it comes to paying off your debts or saving for your future. And if you’re not earning a lot of money, extra income can support your life in all kinds of ways.
If you have the time to earn more money, then do so. You might consider working towards a promotion, for example, as that would do much to raise your bank balance. You could take on a side-hustle to supplement your regular income, perhaps by making money online.
Investing is another way to make more money, provided you took the time to educate yourself on some of the risks involved first. And if you are struggling to make ends meet in a dead-end career, it might be that you consider a career or job change to improve your future finances.
Put These Mindsets Into Action
Incorporate some of these money mindsets into your thinking today!
By doing so, you will start to see a change in your financial situation. And especially if you have faulty financial mindsets, by making the switch, you will also save yourself from possible financial ruin.