The collective mindset around money is fraught with tension. People don’t like looking at their bank accounts, they’ll swipe their plastic with reckless abandon, and every financial issue can wait until “tomorrow.” So, how can we fix our relationship with money for a better future? By looking into the past — here are six vintage hacks that will transform how you view money.
Start Saving, Even if It’s Small
People assume that if you aren’t putting away hundreds of dollars a month that there’s no point in opening a savings account. But that couldn’t be further from the truth; saving just a little at a time can actually help you save more. Not just because you’ll be more inclined to do it but also because it won’t affect your budget nearly as much to put away $10 or $20 a month.
Open a Savings Account You Can’t Get Into
Speaking of savings, let’s talk to those of you who’ve opened accounts in the past, only to drain them when you need cash in a pinch. You can’t be trusted — yet. But one way to exercise that muscle is to open a savings or money market account that’s challenging or even impossible to access. Give over control to a financial advisor you trust, set money aside, and you’ll reap the rewards of your hard work. Eventually.
Ask Yourself a Few Questions Before You Buy Something
“Why?” is the most important question you can ask yourself before you make a purchase. Why is this important? Why do you feel like you want or need it? If you can’t answer these questions honestly (without needing a bunch of caveats to justify it), then you probably don’t have any business buying it.
Carry Cash
Use cash for impulse purchases. Go ahead. Buy the small candy bar in the checkout. But don’t use your card. Paying for things in cash forces you to view what you’re doing differently. It reminds you that this is a transaction — you’re giving away your hard-earned money for something. Does that mean you’ll still buy it? Maybe, but at least you’ll only buy what you can afford, and that’s the whole point.
Include Savings (And Fun Money) In Your Budget
Too many people run a tight ship with their budgets, which makes them give up on budgeting altogether. The purpose of budgeting is to make you aware of your spending and be more responsible, not give up everything you love for the sake of a meager retirement account. Set aside money for everything, including nights out with your friends or buying a new book on a whim. Being realistic about your spending is one of the most important things you can do for your financial future — it lets you know where you stand with yourself!
Budget First, Then Cut Back
If you don’t know what you’re spending your money on, you won’t know what you shouldn’t be spending it on. Spend a few weeks or even a month just tracking your spending without making any changes. Jot down everything you notice — from proud moments to unsavory excess spending. Review how you did. Chances are, it’ll be obvious where you should make changes, and even easier to actually do it.
