A Simple Approach to your Personal Finance — Initial Step

Note: I am No Expert. Whatever I say is either coming from what I have experienced, or what I like as advice.

It is not like I was ever that bad with Money.
I have always been a person who was known to have understood the value of Money.
Sometime people might even consider me frugal.
Although in my defense.
I do spend on things that I like, some of which are books, sunglasses and a few more. But I just don’t spend money mindlessly!

Now, it came very naturally to me but for some, it doesn’t.

Some people, though understand that money matters, but somehow fail to make that shift in spending habits.

It is just that, we all are different.

But whatever it is, Money does work the same way, so I personally think that all should become somewhat disciples in terms of Money.

And the level of “discipline” also varies for everyone.

For, one maybe they have to be disciplined since they need to pay off their debt.
Another one may be saving to buy their first property.
Some may be saving for a startup.

Who Knows!

It is all different.

So, you need to measure your needs, and your circumstances before applying these methods.

Now, that you have a certain goal in front, now let’s talk about how you can look into your personal finance

Stop Denying

It is necessary.
Look, I am coming from my experience. Even though I am frugal most of the time, there are times, when I did spend a lot.

Yes, a few times. And let me tell you my reaction all during those brief periods.

I just go straight into denial.
I refuse to keep accounts of my expenses, I refuse to check my accounts, and I refused anything that has the slightest chance of showing me my madness.

Can you relate to this? I bet some of you will.

Now, this is the denial phase.
It is like if you don’t see it, it is just not there.

NO!

It is there and if you don’t get real, it will eat you up in near future.
You have to force yourself to face the reality - that you messed up.
And it is okay.

But it is time to take responsibility for your Money.

Here comes the next step.

Maintain records

Keep track of your money.
You need to find out exactly where you are spending your bills!

If you can’t pinpoint the problem, then there is no way you can solve it.
See where you are spending most. For some maybe clubbing, eating out a lot, lots of subscriptions, or whatever it is. Just get a hold of the category.

Once you figure out the leaks, now you can fix them.
Let’s say if you have tons of unused subscriptions, then just cut a few of those.

That’s how you get your control back.

Now coming to a Huge leak in today’s world

Control impulse buying

A study from 2017 says that most Americans are exposed to around 4,000 to 10,000 ads each day.
Now, just imagine the number today, ie 2022.

We are blasted with new stuff and let’s be real, 100s of minds are working behind these commercials and advertisements, just to make us buy.
So, it is very clear that we are fighting an uphill battle.

These are designed to make us make the purchase.

And that makes it the most difficult and important part of your process.

Now, we can’t just get off of the internet tomorrow.
Not possible.

But what we can do is slow down.
Believe me, this works.

Let me tell you the steps.
You see something interesting.
Your mind is triggered. Impulse is about to hit. You're about to add it to your cart……
Don’t stop it!

Yes, because most of the time, you won’t be able to stop it.

Rather add it to the cart. And then
Keep it there for 3 days.

Just tell yourself, you will buy it, but just after 3 days.
Simple…..

Now, this is when the magic happens.

In these 2 days, your brain will recover from the spellbound of that mesmerizing advertisement and will get back to its normal state.
The state where you have your cognitive control.

Your brain will automatically, discard the impulse, and let me tell you, almost 90% of the time, you will NOT end up buying that thing.
You will discard the cart, sooner or later.

This happens. And I don’t know the exact science behind it. But it works.

The fun part is that, there might be a case where you actually need that thing.
And that’s completely okay. Then go and buy it after these 3 days!

But as I said, 90% of the time, you will completely get out of the impulse state without losing any hard-earned money of yours!

So, these are just 3 ways you can cut down your spending and become a little more financially responsible. There are many other ways too and I will discuss those in further pieces. So, just keep supporting.

Also, I will talk about budgeting, which is a super essential part of your personal finance journey. Do check it out.

Anyways thanks a lot for all the love. And if you wish to support my work, then here is the place — BuyMeACoffee