Depending on where you’re at financially, getting a paycheck might be a super exciting event (hooray weekend) or it might be a bit stressful (will I have enough to pay my bills?). Regardless of which camp you fall into, I’m sure we all could be a bit better at our spending. Unfortunately decreasing our spending is much more realistic vs increasing our income but it is often more tempting to just keep spending. Did you know that consumer spending increased by 2.3% in Q4 of 2020, and more people are spending too much while earning less. Wasting money now can deprive you of getting setup for long-term financial success!

Being responsible with our money is certainly not as fun as buying random things you like at the store. However, having a secure financial situation can provide you with a level of satisfaction and happiness more than what you experience when you go shopping. Though reducing wasteful spending is crucial, it is easier said than done. Most people might not even realize how they’re overspending daily. Fortunately, there are simple and effective ways that can lead you to achieve your future financial goals.

Live on a budget

If your spending habits are out of control, getting setup with a budget is a must. Don’t be afraid to get into the specifics. Make a budget plan that is incredibly detailed so that you can get a more accurate and solid prediction of how much money you’re going to spend and save. Point out things like fixed expenses and optional expenses that are not really at the top of your priority list. There are many tools to approach budgeting. Figuring out what the best approach is for you can help you manage your finances big time.

Moreover, it is helpful to track your expenses. Pay more attention to where your money is going to avoid accidentally spending more on a few smaller purchases. Making sure you know what you’re doing, and buying can help you carefully decide whether to spend money or not. Tracking expenses can also help you strictly follow your budget plans at the end of the day. You’re more likely to say ‘no’ to a purchase if you know for a fact that the purchase will hurt your budget!

Furthermore, make it a habit to incorporate lists in your daily life. To strictly follow your budget, consider making lists for every trip to the grocery, and definitely meal plan. Write down all the goods and products you plan to buy and rank them according to their level of necessity. In this way, it is easier to cross out and eliminate the things that you won’t definitely need.

Make use of your employee benefits

As a young professional, employee health benefits and wellness programs might help you save more money. We all in one way shape or form will consume healthcare, so if it’s possible to save money on it, even better! Other than health insurance, health and wellness programs are given to employees so that they can get valuable benefits when it comes to their health and well-being. An example of this would be programs that can help an employee stop smoking, lose weight with the help of gym discounts and programs to help them eat healthily. 

As these programs may vary from one-time events to year-round benefits, other employee benefits such as insurance plans and retirement benefits can provide a more long-term solution. Talk to your employer and discuss how they can help you get an insurance plan and make the most out of your employee benefits.

Get rid of that expensive habit

Most individuals that are not aware of how much money they spend daily might have a few expensive habits. All everyone wants is to live a good life. This good life consists of costly dinners at fancy restaurants or paying cable to watch your favorite tv shows (or getting $5 lattes). Unfortunately, the best way to control your finances and save more money is to let go of the attachment you have with these indulging habits. Eating out, whether it be fast food or gourmet cuisine, will not only affect your health but can also affect your bank account. 

Consider staying in and making healthy home-cooked meals. Paying for individual ingredients instead of a pre-cooked meal at a restaurant will be way cheaper and more beneficial to your health. In addition, you will be able to take care of your health more as you will know what exactly goes into your body.

Furthermore, it is time to be brave and cancel your cable. Cable bills will more likely cost you a large amount of money every month. You will be better off using low-cost streaming services such as HULU and Netflix since it gives you just as many benefits and options but for an even lower price.

Wanting to achieve your financial goals can be difficult if you are not doing anything to spend less and save more. The lifestyle changes mentioned above can help you take small but impactful steps toward your aspirations. Taking steps in saving more money can teach you discipline, which can be incredibly helpful in the workplace. As a young professional in a capitalistic world, trying out even just a few of these steps can already make a huge difference when it comes to your finances. Keep in mind that it is better to start early for long-term financial stability and satisfaction.

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