Put an end to your overspending and take command of your financial situation. Then you can avoid having money dictate your life.
With the Help of a Free App, You Can Get Started Managing Your Expenditures
Make your money last for a longer period of time. A new app, Pocket Budget, has been developed by the Danish Financial Supervisory Authority to assist you to gain better control over how you spend your money.
Tips & Strategies for Keeping Your Expenditures Under Control
The Budget Should Be Divided Into Reasonable Portions
If you break down a difficult task into smaller portions, you will be more likely to overlook it altogether. This holds true for the amount of money you have set aside in your budget for spending. The “envelope method” is an ancient housewife trick that still works today. Using this system, each month, the housewife raises all or a portion of the food she has available for spending and distributes the points in envelopes to those who need them.
However, despite the fact that cash and envelopes are quickly becoming the novelty of the millennium, the philosophy behind the envelope system is still a timeless manner of managing your finances.
Alternatively, you can break your monthly spending budget into smaller chunks of 4-5 weeks and only allow yourself to spend the money allotted to you for each week. This type of conceptual separation into envelopes makes it easier for you to stay on track with your budget and avoid overspending. You’ll be able to see how much money you have left over for each week, and you’ll be certain that you don’t spend too much money on red steaks the first week, forcing you to rely on pasta and gravy for the rest of the month.
Leave the Pounds at Home, if You Can
The value of your pounds makes it simple for you to spend money – possibly too simple. Unlike when you make a physical cash withdrawal from a wallet, money does not appear to be transferring from your account while your beep signal is activated during the transaction process. Before you realize it, you’ve blown through a large chunk of money on impulsive purchases and self-indulgence. If you do not intend to spend money, leaving your pounds at home is the simplest method to keep yourself from overspending. There will be no pounds, and there will be no expensive cake.
Allow for a 24-hour Cooling Period Before Purchasing
Take a few deep breaths when you see a must-have in a store window that costs more than the budget you’ve set for yourself. Tell yourself that you will be able to purchase the shoes or the smartphone cover after 24 hours, but only when you have calmed down. In this case, the cooling-off interval is effective because it gives your brain enough time to come up with a logical, rational decision. Prior to being forced to calm down, you can determine whether the cap should be £100 or £500, depending on your preferences. The cooling limit only needs to ensure that you will be able to feel the purchase in your wallet once you make the buy.
If you reverse the decision with your partner, father, or a friend, you may be able to relax a little more. When you are able to pass the ball to another person, the conversation will assist you in turning the decision over in your head one more time.
To create a deal with yourself, you might say that it’s fine if you buy your must-have item, but that you’ll have to give up something else in exchange for it. As a result, you may receive less advise on things such as Saturday red wine, summer vacation aircraft tickets, or other things that you value. When you consider what you will have to give up, it can feel like a bucket of ice cold water pouring down your throat.
Replace Your Negative Spending Habits With Good Ones
If you find yourself continually blowing your budget on the same bad spending habits, such as cigarettes, clothing shopping, or mix-and-match sweets, you may want to consider substituting a less expensive load for your bad habit. You’ll need to do a little self-reflection and pay attention to the events that trigger your cravings. What exactly do you require? Entertainment? You can skip the action. Prestige? Socializing? Afterwards, you’ll need to find a less expensive substitute for the impulse that causes you to want to spend money.