Are you one of those who train, write down your performance and prepare to exceed your own goals, or don’t you care about the results? As in sports, those who don’t organize themselves and don’t put into practice what they learn also end up disqualified in the personal finance tests. Discover 6 attitudes that will guarantee your gold medal in the Finance Olympics!
Por Me Poupe!
Attention, Mepoupeiras athletes! and Mepoupeiros! At the Financial Olympics, who are you in the spending control competition? Are you one of those who train, write down your performance and prepare to surpass your own goals, or do you follow the line “let life take me” and don’t worry about the results? Well, let Auntie Spare Me! Tell you something: just like in sports, those who don’t organize themselves, don’t plan, don’t put into practice what they learn, and don’t know their own limits, also end up disqualified in the personal finance tests.
But don’t chooooooora, this post will help, once and for all, whoever wants to control spending from now on, to always get ahead in the Olympics of financial life. Whoever puts these 6 attitudes into practice will likely have a guaranteed place on the podium! Go, Brazil, sil, sil, sil!
1. Emotional triggers: you need to be aware and strong!
I’ll start by bringing up a point that doesn’t even seem to be true. But do you know those dark feelings that we all have and that often lead us to take actions that we usually later regret? It’s the emotional triggers! If they can hinder athletes and even make some of them drop out of important competitions, they also drive people to compulsive spending. It may sound like paranoia, but one of the ways to control spending is to pay close attention to feelings such as fear, anger, sadness, hurry greed, euphoria…!
“Oh, Spare Me! What an exaggeration! What does one thing have to do with the other?”
Everything, my pupil and my pupil! And who is saying this is not me – I mean: it’s me, too! – but a science called behavioral economics. I asked Nath to make this video about the 7 worst emotional triggers that make you lose money. It explains the financial behavior and the psychological dynamics behind decision-making. Watch it!
2. Paper and pen: do your quizzes!
I’m sure you’ve heard your parents all your life: “Let me do the math for the month!” Tell the truth, now in adulthood you repeat that, don’t you? Great! This attitude is capable of miracles! One of the things that most people lose money is not knowing what they spend on it. I even mentioned here what are the worst ways to lose money.
So, note and write down all your expenses! Make three columns: 1. what day you spent; 2. with what you spent; and 3. what is the amount of this expense. Then, at the end of the month, add it all up with the calculator and find out how much you spent on supermarket, restaurants and bars, entertainment, parking, car, extras, clothes, shoes, rent, utility bills, etc. with the money you spend on each category of things. Many of them, it is worth remembering, unnecessary! (but this is another chat!)
3. Use and abuse personal finance apps and spreadsheets
But if putting everything at the tip of your pencil is literally not your thing, there are now endless personal finance apps that help you control money and have more control over your pocket. The important thing is that you have absolute control over what money comes in, what goes out, and what is invested. Manage all your money, because every penny is important. Some applications can make it easier, so I’ll mention these here: My Finances, Organize, Mobills, and Guiabolso.
If you’re interested in technology, but not much: use spreadsheets! Here I offer some unique worksheets and guides that help in various situations. Did you see it? I do everything for you to get off the hook, quit your financially sedentary lifestyle and keep your pocket in shape! Oh, and if you are self-employed or self-employed, look how beautiful: this other spreadsheet will help separate your personal accounts from your business accounts.
4. Financial education
One of the greatest assets anyone can have in life is knowledge! If an athlete doesn’t know about a sport, he doesn’t stand out, doesn’t break records, and doesn’t win medals. And if this logic applies to what is learned at school and in gyms, leading people to acquire an occupation and a profession, it is even more true for the things in life.
Wisdom is something no one can take away from you, and the more wisdom about something you have, the more freedom you have. So, instead of just being on social media or in front of the TV watching entertainment, how about investing in your financial education? After all, she wasn’t introduced to you in high school, but LIFE CHARGES YOU! Stick me and make a Nathflix financial control right now!
5. Basic financial planning
But you can call it a detailed household budget if you prefer. Do you know a quick and practical way to start training and mastering your money (and not being controlled or controlled by it)? Do as the athletes do and advance in stages: know how much you earn -> know how much you spend -> balance earnings and expenses to make money at the end of the month -> invest the minimum amount of money necessary to guarantee your short and medium plans and long term.
6. Learn to say NO
This one’s hard, I know… But not to say no to brush just because it’s on sale, or to the gym’s annual plan just because it’s 10% off when you don’t even like to work out, or to your son’s birthday present of the boyfriend’s cousin just to impress his family, you can’t control your spending.
“Wow, Spare Me! Can’t even buy a little gift? Creed!”
Yes, of course, you can. But you must use your money wisely if you really want to control your spending. So, before spending your money, carefully assess whether it is an essential purchase, do price research, compare conditions (payment methods, promotions, free shipping, etc.) between physical and online stores, consider whether you need to buy now or if you can to wait a little longer (sometimes you want to give it and then it goes away!)… And always keep in mind that saying: “If you don’t buy anything, the discount is bigger”!