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4 Insightful Tips to Control Your Spending Habits

4 Insightful Tips to Control Your Spending Habits

Are you in debt? Are you always struggling to save money for the things you really want? Well, you’re not alone, many people all over the world are facing the same issues right now. No matter how hard they try, it’s never enough.

What’s curious is that even when they get a promotion (and earn more) and come across a big sum of money, they quickly return to the same situation. Why is that? The problem is not how much money you have, it’s your spending habits. It’s easy to think you’ll fix your problems by earning more money, but the truth is that you just have to spend wisely.

It’s easier said than done, I know, but if you’re reading this you’re willing to change and that’s the first step. I wish I could give you a quick, simple and easy solution, but there’s no such thing. It’s hard work, but it’s not impossible.

1. Ask Yourself Why

To be fair, you always should be assessing your purchases, but it’s even more important to do it when you’re about to buy something. You see, impulse can make us do things we’ll regret as we only think about the consequences afterwards.

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When you ask yourself why you’re buying something, you’re immediately reflecting about it. “Why am I buying a new (insert item/experience)?” The majority of the times you won’t find a decent reason for this question.

Why are you buying a new smartphone? Is there something wrong with the one you have right now? Why are you buying a new pair of jeans? Are the old ones broken? Or are you worried about what others might think if you repeat an outfit? Why are you going out (again)? Are you really going to have a nice time or are you afraid of being lonely? And not finding Mr/Miss right?

The point is: once you understand the underlying reason for your spending habits you’ll see that nothing will change by buying something. There are other ways to “solve” your problems without breaking the bank.

2. Have a Budget

Whether you have a daily or weekly budget, it doesn’t matter, as long as you have one. Ideally, you should never go over budget, but if you do, it’s not a problem, as it’s hardly the reason for having one in the first place. When you have a budget you’re forced to think about every purchase you make. So all of a sudden it’s not a matter of choosing, picking, paying and leaving – it’s a decision that’s going to affect something else.

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It’s even better to tie this budget to something that’s meaningful to you. It could be a long due trip to an exotic place, a replacement of the malfunctioning car or to reduce your ever increasing debt. When you start looking at the broad picture, you’ll stop your meaningless purchases in order to keep within budget and achieve whatever your goal is.

3. Don’t Spend Money That’s Not Yours

How many people do you know with massive credit card debts? Or people who ask for a bank loan as soon as they finish paying the last one off? It’s hard to say “no” to money that’s readily available, but it’s a mistake to believe that money is yours.

Credit is great if it’s used with a purpose and a well-defined plan – like starting a business for instance. It’s also a cushion to fall back on in case of an expected emergency. However, if you’re not in dire need, you should never use credit cards and overdrafts frivolously, or you end up paying the (hefty) consequences.

So if you’re getting to the end of the week or month and you feel you might not have enough money for rent, is it wise to buy a new top/t-shirt on your credit card? Shouldn’t you wait until you have the money to pay for it? The concept is simple: if you don’t have the money, don’t spend it. The more you get yourself in debt, the harder it is to get out. And when you add up all the money you’re paying in interest throughout the year, you’ll quickly see the problem you have.

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4. Be Willing to Change

One of the main reasons why people carry on with their financial problems is because they don’t want to change their lifestyle. You know that one of the definitions of insanity is: doing the same thing over and over again and expecting different results.

How many times do you eat out a month? How many times do you order a takeaway? Do you know how much money you could save by cooking at home? And before you say you cannot cook, remember that with practice you can achieve (nearly) everything. Do you drive to work? Do you need to? Have you considered selling your car and cycling to work? With services like Uber, Blablacar or Co-wheels/Turo, you’ll always have a car available to you.

People always dread a change of lifestyle; it seems like it’s not only a matter of comfort, but it’s also related to pride. A person might choose to get in debt and go to the gym with their friends, instead of exercising at home and looking like they don’t have money.

At the end of the day, you and you only know the problems you have. If you think your spending habits are not really affecting your life, I suppose there’s not much to worry. However, if it’s getting to a point where if you don’t take action things might start to fall apart, then you have to take it seriously.

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Do you have problems managing your money? Have you found a solution? Share in the comments below.

Featured photo credit: Alejandro Escamilla via hd.unsplash.com

More by this author

Guilherme Ribeiro

Freelance Writer

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Published on November 8, 2018

How to Answer the Tough Question: What are Your Salary Requirements?

How to Answer the Tough Question: What are Your Salary Requirements?

After a few months of hard work and dozens of phone calls later, you finally land a job opportunity.

But then, you’re asked about your salary requirements and your mind goes blank. So, you offer a lower salary believing this will increase your odds at getting hired.

Unfortunately, this is the wrong approach.

Your salary requirements can make or break your odds at getting hired. But only if you’re not prepared.

Ask for a salary too high with no room for negotiation and your potential employer will not be able to afford you. Aim too low and employers will perceive as you offering low value. The trick is to aim as high as possible while keeping both parties feel happy.

Of course, you can’t command a high price without bringing value.

The good news is that learning how to be a high-value employee is possible. You have to work on the right tasks to grow in the right areas. Here are a few tactics to negotiate your salary requirements with confidence.

1. Hack time to accomplish more than most

Do you want to get paid well for your hard work? Of course you do. I hate to break it to you, but so do most people.

With so much competition, this won’t be an easy task to achieve. That’s why you need to become a pro at time management.

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Do you know how much free time you have? Not the free time during your lunch break or after you’ve finished working at your day job. Rather, the free time when you’re looking at your phone or watching your favorite TV show.

Data from 2017 shows that Americans spend roughly 3 hours watching TV. This is time poorly spent if you’re not happy with your current lifestyle. Instead, focus on working on your goals whenever you have free time.

For example, if your commute to/from work is 1 hour, listen to an educational Podcast. If your lunch break is 30 minutes, read for 10 to 15 minutes. And if you have a busy life with only 30–60 minutes to spare after work, use this time to work on your personal goals.

Create a morning routine that will set you up for success every day. Start waking up 1 to 2 hours earlier to have more time to work on your most important tasks. Use tools like ATracker to break down which activities you’re spending the most time in.

It won’t be easy to analyze your entire day, so set boundaries. For example, if you have 4 hours of free time each day, spend at least 2 of these hours working on important tasks.

2. Set your own boundaries

Having a successful career isn’t always about the money. According to Gallup, about 70% of employees aren’t satisfied with their current jobs.[1]

Earning more money isn’t a bad thing, but choosing a higher salary over the traits that are the most important to you is. For example, if you enjoy spending time with your family, reject job offers requiring a lot of travel.

Here are some important traits to consider:

  • Work and life balance – The last thing you’d want is a job that forces you to work 60+ hours each week. Unless this is the type of environment you’d want. Understand how your potential employer emphasizes work/life balance.
  • Self-development opportunities – Having the option to grow within your company is important. Once you learn how to do your tasks well, you’ll start becoming less engaged. Choose a company that encourages employee growth.
  • Company culture – The stereotypical cubicle job where one feels miserable doesn’t have to be your fate. Not all companies are equal in culture. Take, for example, Google, who invests heavily in keeping their employees happy.[2]

These are some of the most important traits to look for in a company, but there are others. Make it your mission to rank which traits are important to you. This way you’ll stop applying to the wrong companies and stay focused on what matters to you more.

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3. Continuously invest in yourself

Investing in yourself is the best investment you can make. Cliche I know, but true nonetheless.

You’ll grow as a person and gain confidence with the value you’ll be able to bring to others. Investing in yourself doesn’t have to be expensive. For example, you can read books to expand your knowledge in different fields.

Don’t get stuck into the habit of reading without a purpose. Instead, choose books that will help you expand in a field you’re looking to grow. At the same time, don’t limit yourself to reading books in one subject–create a healthy balance.

Podcasts are also a great medium to learn new subjects from experts in different fields. The best part is they’re free and you can consume them on your commute to/from work.

Paid education makes sense if you have little to no debt. If you decide to go back to school, be sure to apply for scholarships and grants to have the least amount of debt. Regardless of which route you take to make it a habit to grow every day.

It won’t be easy, but this will work to your advantage. Most people won’t spend most of their free time investing in themselves. This will allow you to grow faster than most, and stand out from your competition.

4. Document the value you bring

Resumes are a common way companies filter employees through the hiring process. Here’s the big secret: It’s not the only way you can showcase your skills.

To request for a higher salary than most, you have to do what most are unwilling to do. Since you’re already investing in yourself, make it a habit to showcase your skills online.

A great way to do this is to create your own website. Pick your first and last name as your domain name. If this domain is already taken, get creative and choose one that makes sense.

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Here are some ideas:

  • joesmith.com
  • joeasmith.com
  • joesmithprojects.com

Nowadays, building a website is easy. Once you have your website setup, begin producing content. For example, if you a developer you can post the applications you’re building.

During your interviews, you’ll have an online reference to showcase your accomplishments. You can use your accomplishments to justify your salary requirements. Since most people don’t do this, you’ll have a higher chance of employers accepting your offer

5. Hide your salary requirements

Avoid giving you salary requirements early in the interview process.

But if you get asked early, deflect this question in a non-defensive manner. Explain to the employer that you’d like to understand your role better first. They’ll most likely agree with you; but if they don’t, give them a range.

The truth is great employers are more concerned about your skills and the value you bring to the company. They understand that a great employee is an investment, able to earn them more than their salary.

Remember that a job interview isn’t only for the employer, it’s also for you. If the employer is more interested in your salary requirements, this may not be a good sign. Use this question to gauge if the company you’re interviewing is worth working for.

6. Do just enough research

Research average salary compensation in your industry, then wing it.

Use tools like Glassdoor to research the average salary compensation for your industry. Then leverage LinkedIn’s company data that’s provided with its Pro membership. You can view a company’s employee growth and the total number of job openings.

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Use this information to make informed decisions when deciding on your salary requirements. But don’t limit yourself to the average salary range. Companies will usually pay you more for the value you have.

Big companies will often pay more than smaller ones.[3] Whatever your desired salary amount is, always ask for a higher amount. Employers will often reject your initial offer. In fact, offer a salary range that’ll give you and your employer enough room to negotiate.

7. Get compensated by your value

Asking for the salary you deserve is an art. On one end, you have to constantly invest in yourself to offer massive value. But this isn’t enough. You also have to become a great negotiator.

Imagine requesting a high salary and because you bring a lot of value, employers are willing to pay you this. Wouldn’t this be amazing?

Most settle for average because they’re not confident with what they have to offer. Most don’t invest in themselves because they’re not dedicated enough. But not you.

You know you deserve to get paid well, and you’re willing to put in the work. Yet, you won’t sacrifice your most important values over a higher salary.

The bottom line

You’ve got what it takes to succeed in your career. Invest in yourself, learn how to negotiate, and do research. The next time you’re asked about your salary requirements, you won’t fumble.

You’ll showcase your skills with confidence and get the salary you deserve. What’s holding you back now?

Featured photo credit: LinkedIn Sales Navigator via unsplash.com

Reference

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