Remember how we were all worried about quicksand as a kid? Yet most of us will never encounter a pit of quicksand, much less figure out how to avoid or get out of one. That is, unless quicksand was a clever metaphor for credit card debt — because then we could all use a vine to hold onto.
So where are these financial lifelines? It’s a secret…well, five secrets, and we’ll cover them right now so you can pull yourself out of the pit and continue your journey toward your financial goals.
Budget, Budget, Budget
If you’re not budgeting and wondering why you’re struggling with debt, start here — all other healthy finance habits stem from your ability to set a sustainable budget. You don’t need fancy software or apps; a basic spreadsheet or even pen and paper will suffice. Budget for your essentials, savings, and a little fun — yes, budgeting for fun is critical, too! Even though you know exactly how much you have and where it’s going, you’re much less inclined to overspend.
Use Cash
Cards are convenient, but they also create a mental separation from our transactions. Even if you’re already budgeting, using cash for your discretionary spending can be a game-changer. Withdraw a set amount for the week and stick to it. Once the cash is gone, it’s gone! It might feel strange at first seeing as we’re getting further away from cash and closer to imprinting your banking information into your blood vessels. But it’s miraculous how much it shifts your perspective on spending.
Think of Your Future Self
Where do you want to see yourself in five years? You’ve heard that in job interviews, but when was the last time you asked that question about your life in general? Make money goals for your current self to achieve. Whether you’re stashing money away for a trip, a new car, or an emergency fund (which we highly recommend if you don’t have one), hitting specific targets can help keep your spending on track. Just don’t forget to celebrate when you do, maybe by taking out an extra $20 from the ATM to indulge in something fun.
Say No
Perhaps the most difficult but most meaningful frugal practice is learning to say no. Whether it’s to social engagements that fall outside your budget or subscriptions you don’t use, being selective about how and where you invest your time and money is essential for a healthy financial life. Not only that, it’s a prerequisite for living a happy life; the power of no is not to be underestimated! Don’t let peer pressure or FOMO keep you from becoming your best frugal self.
Wait It Out
We’re not saying you can’t buy something if you want it. But what if you just waited a few days to see how you felt instead? Even just a 24-hour cooling-off period is enough to realize that no, you don’t need a new smartphone when you just got one last year. Don’t let the impulses take over; take a beat and come back to it tomorrow or even a week from now. And if you can justify the cost and still want it after all of that, then by all means, break out the plastic and swipe away.
