Updated on May 3, 2016
Set The Mindset For Money Management Tips
Money is the great equalizer, from the white collar people to newly minted millionaires, everybody feels a pinch when a couple of dollars is missing every now and again. Depending on how deep the pockets may be so is the pain, minor or not. Be that as it may, having cash to mean no financial difficulties is in a case-to-case basis.
Creating strong money management skills can help you utilize the cash you have today to carry on with the life you need. Furthermore, when your lady luck smiles that big you’ll know how to handle it.
People need to come up with a plan for their money. Establishing a plan means the person gains discipline, a goal and the desire to achieve financial independence. Others mainly play it by year, which puts them into debts in most instances.
Counter The Mindset
Money experts say that there is a need to counter the mindset of spend, spend, and spend. By preparing a plan, you will have a reason not to give in to these forces.
There are instances where spending more eventually provides more savings in the long run. It sounds counterintuitive but below are examples where it works.
It maybe is the best case of this example. When you purchase things, which you use consistently in bulk, you’ll be able to stretch your cash. Think non-perishable things like bathroom tissue, paper kitchen towels, soaps and detergent. These can be purchased in volume and put away in the storage.
An enrollment at a wholesale shopping stores like Costco or BJ’s can be justified especially if you have a big family. Your membership card will pay for itself. Grocery items save money if the largest quantity is bought. The savings come in comparison if the same item is bought in smaller quantity options instead. Buying by packs are often at better value only if you get to use the items often or else they will spoil and rot.
Yearly Versus Monthly
Auto insurance can offer savings if paid annually. Lump sum payment is a better option as it provides discounts. Anywhere from $20 to a hundred dollars can be achieved if this is practiced. Memberships in the gyms, saunas, activity centers for kids, school tuition are often discounted to encourage people to pay for the entire 12 months and save up.
Gifts Cards And Prepaid
If you use a certain service regularly like for gas or groceries, buying gift cards may be another saving option. By essentially prepaid buying the items, you can use the budget purchase as it will be spent when it’s needed the most. Again, spending so you can save more.
In terms of medical care, in theory, one of the easiest steps is to take on a preventive care plan. It costs to undergo annual physical and dental exams. Still, getting sick and taking in meds is a lot more expensive for both short- and long-term periods. The saying prevention is better than cure can now be paraphrased as prevention being less costly than getting a cure.
Take stock of your spending habits. Take note of the things you buy frequently and need anyway so you can plan ahead in your buying sprees. Underline the words need frequently as those as the phrases to keep in mind. When you buy ahead on items which are non perishable you plan the purchases well. Planning is important since you’d be able to stock on things that’s getting low on the supply in the pantry or medicine cabinet. Buying ahead becomes the savings not only in the volume buying but on gas spent doing weekly groceries.
Remember that things will ripple and take a domino effect. That penny pinching will snowball into significant savings. At the end of each year you would end up with a tidy sum of money to tide things over.