Is Your Money Burning a Hole in Your Pocket?

Here’s What To Do With It

Your salary is coming. Your checking account equals cash. You have all these great plans: get your bills or reduce your credit card debt.

But it’s Friday night, the money is there and you want to do something about it. Do you want to have fun or do you have something new that you have read? Everything looks so attractive when you have that money in hand to spend it. A few days later, you wonder where all the money went or how much it was worth.

Then repeat the cycle a week or two later.

If money is burning in your pocket every spring day, there are a few things you can do to avoid waking up on Monday wondering where all the money went. If you have extra cash, you can do it.

What to do when money is always a hole in your pocket

1. Think differently about small expenses

The first and most important thing you can do to keep money from burning in your pocket is to think a little differently about your expenses. In short, think about your expenses for a month.

Check your credit card statement or bank statement for the past month. If you normally work with money, show receipts so you can see them.

Now ask yourself honestly: Do you really remember what each of these questions was like? If you don’t, you won’t earn much of your money. Remember to honestly ask yourself if you are still happy that you spent the money.

It’s normal for some to say “yes, it’s okay”, but to be fair, many of you will feel like “no, this is not a good move.” It’s not bad either. What you are currently doing is training your mind to get a better idea of what is really important to you.

Make it a habit to do this regularly. If there is a bank or credit card statement, check and ask yourself, do I remember? And if I do, am I sorry? If you don’t remember or regret it, think about the cost and what was just a waste of money. Each time you do this, you are creating for yourself a better ‘personal sense of money’.

2. Start automating your savings

Another aspect of this problem of burning money in your pocket is the great temptation to keep spending money. In your moments of maximum reflection, you will realize that money needs to be better used, but if it hits a hole in your pocket, you want to spend it and rational thinking will not work.

If this sounds like you. start automating your savings. Open new savings account at another bank that you don’t have easy access to, then set up an automatic remittance to withdraw money from your checking account to your savings account the day after each paycheck. Get the money out of your sight and treat it as an emergency fund. This makes contact difficult, so you can only remove it in an emergency or after careful consideration.

He only uses technology to help you with your money. There are also tools to estimate your expenses and easily set goals on your smartphone.

3. Set achievable financial goals

In addition to a simple emergency fund, you can also consider other ways to dig a hole in your pocket. What are your financial goals? If you have extra money, what can you do with it that matches what you want to get out of life?

Have you ever wanted a home? Do you just want to get out of debt? Maybe you want to buy a decent car that drives well?

All of these goals are realistic for most people when they reach them. It can also be difficult to have a clear central goal and sacrifice less to save money on a regular basis.

A good cause is a SMART goal: it is specific, measurable, achievable, relevant, and limited in time. For example, say, “I want good credit, not high-interest debt, and I’m saving $ 5,000 on a five-year mortgage.”

Think of money as “expenses”. This week, you automatically spend $ 50 from your checking account to that individual home savings account. Spent an additional credit card payment. What is the reward? It’s peace of mind, less stress, and a better financial future.

Don’t worry too much about the best goal. Whether you are saving money or paying off debt, your net worth will continue to improve; it is simply the value of everything you own except your debt. As your performance improves, your financial situation improves, and the better your financial situation, the easier it will be to achieve a goal.

4.Invest your money

If you don’t have any immediate financial goals, consider investing your money for the long term. The truth is, we all have at least one big goal that we all share: retirement. We all want to be able to live our last years comfortably, without having to work, unless we want to. This is the purpose of social security investment.

Investing in a pension is like giving money. Instead of spending money on things you forget or regret, discuss it in a retirement account so you can spend your old money on things you pay close attention to. You can see your money disappear due to something you forgot, or you can arrange a trip for your older man to visit a friend or see his grandchildren. Now take care of your old self while it’s easy and sacrifice forgotten things to do it.

5. Reward yourself sometimes

This is not the most pleasant plan. Sometimes you have to reward yourself. However, make sure you don’t forget or regret these rewards within a month. These are the things you want to remove from your life, not the things that satisfy you.

You will be tempted to reward yourself, especially if you start seeing positive progress by changing your finances a bit. Make sure there are two things.

First, choose rewards that are memorable and meaningful to you. Don’t reward yourself with things you will soon forget or regret.

Second, don’t bury yourself in the reward. Scrub a few so that everyone can wait. Part of the fun is seeing how it looks in your apps. Instead of blowing it all up tonight, you decide, “I’m going to buy it on Tuesday and spend my time looking for the best price before I buy it.” Waiting a few days and looking around is fun, and then you have the item. And if that’s a bad idea, those few days will give you time to convince yourself otherwise. If the idea really works for you, consider using the 30-day rule to get a lot of value out of that reflection and waiting time.

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