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7 Reasons You’re Unhappy With Your Financial Situation

7 Reasons You’re Unhappy With Your Financial Situation

Christmas spending got you down? Don’t fret. Follow these tips to stop spending on the things that don’t matter and you’ll right your financial situation sooner than you can say ‘cash back’.

Spending On Things You Don’t Need

My girlfriend loves “luxury.” Before we started dating, she always used to take cabs, dry clean her clothes, and spend too much money at the bar. My parsimonious ways have helped her change those habits. Now we walk or take public transportation, dry clean only our finer clothing, and if we do decide to go to a bar, we try to have one drink (and rarely is it a top-shelf liquor).

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Spending on Many Poor-Quality Things Instead of The Good Stuff

The old saying ‘buy good, have good’ still rings true. I remind myself of this when clothes shopping, especially. It’s much better to dress in the European manner of owning a smaller, but more classic and expensive wardrobe than in the American tradition of having a closet full of clothes that were once fashionable and which we no longer enjoy wearing. The same goes for shoes—it may make you feel good to wear new clothes while they’re still new, but unless you love that shirt, it’s not worth buying.

Spending Too Much On Dining Out

I love to eat out too, but I try not to do it more than a couple of times a week. Cooking at home always saves money, especially if you’re cooking for more than one person at a time. If you are cooking only for yourself, try to cook twice as much and bring your leftovers to the office for lunch.

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Spending Instead of Saving

You need to save a little bit from every paycheck, whether you plan to spend it on a rainy day or a 401k. Too often we don’t diversify our savings, so that all of our money goes into the short-term (for savings between six months and two years) without focusing on the mid-term (three to five years) or the long-term (ten years plus). Different kinds of investments, such as savings accounts, mutual funds, and government bonds can help you spread your assets wisely.

Spending On What Doesn’t Mean Much To You

Consider what you love to spend money on most of all. Is it travel? Electronics? Giving gifts? Whatever it is, set aside money for it, and sacrifice your other expensive priorities. It may take a month or so to get used to, but once you start spending on what you want, instead of what you’re used to, it will make for more savings. Plus, these new habits will dissuade you from impulse buying and help you value what you are saving for when you finally do buy it.

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Spending Money When You Don’t Have It

If you really want to improve your financial situation, get rid of your credit card debt. Unless you’re charging to change your own life or fulfill a dream you’ve always had, do not spend more money than you make. And if you are going to charge large amounts in order to achieve something you’ve long desired, make sure you are prepared for the future lifestyle sacrifices this will require.

Spending Time Worrying About How Much Other People Spend

People have different agendas and different life plans. Maybe your friends are making more money than you are. But before jealousy rears its ugly head, consider that maybe they won’t make as much as you will in the future. We all have different paths in life, so don’t focus on what your friends have.

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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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