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10 Ways To Stay Accountable With Your Money and Finances

10 Ways To Stay Accountable With Your Money and Finances

Budgeting is more than simply allocating money for monthly expenses. People who know how to budget have a systematic way of handling money. Aside from regulating their spending, frugal people often have their finances planned in advance.

However, sticking to a financial plan isn’t as easy as it may seem. Many of us quit our budget plans the moment we mess up our finances. We give up after a month or two of recording and track expenditures. Is there an easy way to track your budget and finances? Here are ten simple points to remember:

1. Think Strategically

What is the whole point of making a budget? When making your budget, always remember that it’s there to help keep you out of debt. The goal of your budget is to create a better  future that will give you more financial freedom.

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2. Set Financial Goals

Is there a project you want to save for this year? What financial goals can you set to make this project happen? When creating goals, make sure you’ve both set up short and long term plans. There are a lot of money management apps out there that can help you allocate your money easily.

3. Prepare for Emergencies

Always have an emergency fund. When things aren’t going well, an emergency fund can save you from debt and stress. Prepare in case of medical emergencies, layoffs, or divorce. Proper preparation assures that you have money for what’s important to you.

4. Limit Budget

When you are too comfortable with your budget, you find it easier to slip into overspending. Try to limit everything to a fair calculation. Don’t give yourself a lot of money to spend for things you don’t even need.

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5. Set Boundaries

Lending money to friends and family members are sometimes the cause of money shortage. So before you decide to lend money, make sure you have your own finances in order first. There is always a possibility that your money won’t be given back by a friend or family member.

6. Take Away Options That Make You Cheat Your Budget

Stop carrying credit cards if you are prone to buy impulsively. Instead, carry cash all the time. Quit browsing on your favorite online shops if you are out of money. You can block the site if you find yourself compulsively checking it out. On this same note, you can also create visual reminders that will help you remember your goals. For example, you can display a note to remind yourself to stay on budget.

7. Find Like–Minded Groups

Find a friend, support group, or online friends who are determined to keep their finances planned just like you. Having a finance buddy could help you to stick with your goals and stay accountable. You and your penny-wise buddy can even exchange spreadsheets (within reason) and evaluate spending.

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8. Build A Reward System

Don’t forget to give yourself rewards for a job well done! Staying faithful to your financial plan for a month is a big deal, that’s why you should give yourself a pat on the back. Find an inexpensive activity or item that will fit as a pleasurable reward for you.

9. Track Your Spending

Track where your money goes. This technique will help you stay accountable and on budget. There are many apps that can help you manage your expenses like Money Manager, Mint, and Good Budget.

10. Schedule A Periodic Budget Evaluation

Don’t forget to evaluate. Monitor how you are doing with your finances. What are the factors that prevent you from staying on budget? What categories can you tweak to create a better and more accountable financial plan? Set aside a specific time or the day or week to make sure you’re not overspending.

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Conclusion

Knowing a lot about finances and money management can help you create a debt free future. So invest in yourself but avoid instant gratification. Spend your time getting tips and advice from financially-savvy people. You can even hire an accountability expert or a financial advisor if you find it hard to do on your own. Ultimately in finance, the more you know about money, the better you’ll be at managing it.

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Armela Escalona

Freelance Writer

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Last Updated on January 21, 2020

How to Develop a Millionaire Mindset in 6 Simple Steps

How to Develop a Millionaire Mindset in 6 Simple Steps

We all like to dream about being financially wealthy. For most people though, it remains a dream and nothing more. Why is that?

It’s because most people don’t set their mind to achieving that goal. They might not be happy in their current situation but they’re comfortable – and comfort is one of the biggest enemies of growth.

How do you go about developing that millionaire mindset? By following these simple steps:

1. Focus On What You Want – And Take It!

So many people are too timid to admit they want something and go for it. When there is something that you want to accomplish don’t think “I could never actually do that”, think “I could do that and I WILL do that”.

Millionaires play to win, not to avoid defeat.

This doesn’t mean to have to become a selfish jerk. What it means is becoming more assertive and honest with yourself. You don’t have to grab off other people. There is a big pot of unclaimed gold in the middle of the table — why shouldn’t you be the one to claim it? You deserve it!

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2. Become Goal-Orientated

It’s almost impossible to achieve anything if you don’t set firm goals. Only lottery winners become millionaires overnight. By setting yourself attainable goals, you will get there eventually. Don’t try to get rich quickly — get rich slowly.

Let’s take the idea of making your first million dollars and expand on what kind of goals you might set to get there. Let’s also say you’re starting at a break-even position – you’re making enough to get by with a few luxuries, but nothing more.

Your goal for the first year can be having $10,000 in the bank within a year. It won’t be easy but it is doable. Next, you need to figure out the steps you need to take to achieve that goal.

Always look at ways to make growth before cutbacks. With that in mind, you might want to see if you can negotiate a pay rise with your boss, or if there’s another job out there that will pay better. You might be comfortable in your old job but remember, comfort stunts growth.

You may also have other skills outside of your workplace that you can monetize to boost your bank balance. Maybe you can design websites for people, at a fee of course, or make alterations to clothes.

If this is still not enough to make the money you need to save $10,000 in a year, then it’s time to look at cutbacks. Do you have a bunch of old junk that someone else might love? Sell it! Do you really need to spend $10 on your lunch everyday when you could make your own for a fraction of the cost?

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If you are to become a millionaire, you need to start accumulating money.

Here’re some tips to help you: How to Become Goal Oriented and Achieve More in Life

3. Don’t Spend Your Money – Invest It

The reason you need to accumulate money is for step three. Millionaires tend to be frugal people, and that’s because they know the true value of money is in investing. Being your own boss goes hand-in-hand with becoming a millionaire. You’ll want to quit your regular job at some point.

Stop working for your money and make your money work for you.

Rather than buying yourself a new iPad, that $500 could be used to invest in the stock market. Find the right shares (more on that later), and that money could easily double within a year.

There’s not just the stock market — there’s also property, and your own education.

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4. Never Stop Learning

The best thing you can invest in is yourself.

Once most people leave the education system, they think their learning days are over. Well theirs might be, but yours shouldn’t be. Successful people continually learn and adapt.

Billionaire Warren Buffet estimates that he read at least 100 books on investing before he turned twenty. Most people never read another book after they’ve left school. Who would you rather be?

Learn everything you can about how economics works, how the stocks markets work, how they trend.

Learn new skills. If you have an interest in it, learn everything you can about it. You’d be surprised at how often, seemingly useless skills, can become extremely useful in the right situation.

Start developing the habit of learning continuously: How to Create a Habit of Continuous Learning for a Better You

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5. Think Big

While I advise to start off with small goals, you absolutely should have a big goal in mind. If you have a business idea, then that is your ultimate goal – to start that business and make a success of it. If you want to invest your way to millions of dollars and do little work other than research, then that is your big goal.

There is no shame in not achieving a big goal. If you run a business and aim to make $1 million profit in a year and “only” make $200,000, then you’re still significantly ahead of most people.

Aim for the stars, if you fail you’ll still be over the moon.

6. Enjoy the Attention

To be successful, you have to be willing to promote yourself and enjoy the attention to a certain extent. Now the attention doesn’t need to be on yourself, it could be on your brand, but attention definitely attracts money.

Never be embarrassed to get your name out there. That means finding a spotlight and being brave enough to step right up underneath it.

If you run a business, try contacting the local papers. You’d be surprised at how amenable they often are to running a story about you and your business, and it’s all free publicity.

Above all, remember: You control your own destiny. Push hard enough for anything and you’ll get it.

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Featured photo credit: Austin Distel via unsplash.com

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