If you're looking to improve your finances—and many of us are—then you might need to switch to some money-saving mindsets. Through smart thinking and frugal wisdom, you should be able to make better financial decisions, and that could do much to protect the money you have in your bank account.
So, consider the following money-saving mindsets. By allowing them to filter through your thought processes, you might be pleasantly surprised at the effect they have on your finances.
Mindset #1: It could happen to me
What could happen to you? Well, your car could break down when you're halfway across town. A sudden change in weather could lay waste to part of your home. You might 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, by having this mindset, you will have the incentive to 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 would know to put it into an emergency fund to protect you from financial harm. So, not only will you have the money to get you out of trouble should you need it, but you won't have to dip into those savings that you might be using for your bucket list goals—more on this in the next point.
Mindset #2: Live for tomorrow and not for today
Many of us live with an alternate mindset, of course. We care less for our needs and wants tomorrow, and have that ‘live for today' mentality. The upshot of this? 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.
So, remember to live for tomorrow. It means thinking twice before spending on things you don't need, and this means putting 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 those college courses that will need paying for and your future retirement, which will need bolstering. None of these things will be made 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, do what you can to educate yourself. So, you might take a budgeting course at your local college. You could pick up the occasional book on personal finance. You could read money blogs online and check out the financial tips that we have on our website. And you might attend seminars and workshops that are led by those people who are experienced in all things money-related.
We must never stop learning, so no matter how wise and savvy you think you are when it comes to your finances, remember that there could still be sources of financial wisdom out there that could help you take greater control over the money you have in your life. So, don't rest on your laurels. Don't assume you know the answer to all of your financial predicaments. Educate yourself and practice the lessons you learn in real-life situations.
Mindset #4: There's always a better deal
Chances are, you are probably good at finding deals already. You might scour the shelves of your local supermarket for bulk buy 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 and parcel of being frugal, and that is good news for your finances. But if you don't bother to look for those better deals? Well, you are only wasting your money, as with a little bit of research, you could be making more savings in your life.
Still, no matter your level of frugality at the moment, always remember that there could be a better deal waiting for you. Always remember to shop around before coming to a decision. You might miss out on the deals offered by SMARTY mobile (cheaper phone network) and the like if you don't make an effort, and that could limit the amount of savings you can earn daily.
Mindset #5: It's okay to ask for help
Some people are too proud to ask for help. Rather than admitting weaknesses, they carry on through life with their struggles and place limits on their life 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. If you're struggling with an addiction, you might continue to harm yourself on a financial as well as a health level if you don't get the support you need. 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 few examples.
So, remember that it's okay to ask for help. There are professional agencies set up to help people with their debt, addictions, and budgeting problems. There will be people in your life who might be only too happy to help you with any issue that is affecting your finances. So, swallow your pride if you need to, admit to yourself that you do need help, and then seek out those people who can solve some of your issues and put you on the path marked' financial freedom.'
Mindset #6: Free money doesn't mean free spending
Most of the money in your bank account will be money that you have earned. 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 in 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 fall into the habit of squandering it.
Think about any financial needs you have, such as your credit card bills, your loan payments, and any necessary purchases that need to be made before those luxury items on your wishlist. Think about your emergency fund and your saving goals too. It's about making priorities in your life, so while you will be rejoicing when you come into free money, remember that you will be celebrating well into the future if you use the money you have wisely.
Mindset #7: I could be earning more
Now, if you're a multi-millionaire, the prospect of earning more might not be of interest to you. But assuming you aren't living on a mountain of riches, then you might consider the possibility. 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, that extra money could support your life in all kinds of ways.
So, don't assume your life has to revolve around the money you are already making. If you have the time to earn more, 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 using the ideas we gave you to make money online. You could try your hand at investing too, 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 change of job role to improve your future finances.
Think about your situation then, and consider your earning potential. Especially if that extra money would come in useful, you should research your options to give you that increased income.
Today, incorporate some of these money mindsets into your thinking. By doing so, you will start to see a change in your financial situation, both in the short term and in the long run. And especially if you have faulty financial mindsets, by making the switch, you will also save yourself from possible financial ruin.
Take care, and thanks for reading.