| Olivia Heerenveen
It’s important to understand why you spend your money. Many people spend money for multiple reasons, number one often being emotional. Purchasing goods, releases endorphins and makes you feel good about yourself. So it’s logical that you splurge on yourself to be or stay happy. Sign up for our personal finance workshop in September, to understand more on how you can create financial goals for yourself and stick to them.
#1 Understand where happiness comes from
Try to realize what it is that makes you happy and if you really need to buy something in order to feel happier. Did you have a bad day? Does that cappuccino really make you happier after you bought it? Or is it an addiction. Would you be just as good if you wait until you are home to create yourself the perfect cappuccino? And what about that really cute black dress. Did you really need it? Next to the 5 other ones in your closet?
#2 Calculate what you spend in a week, without the extras
Time to get your calculator and calculate what you spend in a week, without any of the extras. And with that we mean, lunches, coffees, shopping, etc. Time to go back to basics, what is it that you really need versus what you want, or think you need.
#3 Put money in an envelope
The best way to keep track is to ditch your cards and use only cash. By exchanging money in your hands, you can actually see it, feel it, and register it leaving your pocket. So go to the ATM take out your previously calculated need-budget, put it in an envelop and use only that for the week.
#4 But now I have no money left
It could easily be that you run out of money. Don’t worry, you will be fine. If you spend your money on the things you really needed there is no reason for extra money. Try to see how this works out for you. Probably it takes some adjusting but after 2 days of no spending money you will start thinking. Do I really need this? Why do I need this? Can I substitute this for something I already have.
And before you know it you will have saved yourself a whole lot of money. Get more inside tools and everything you need to know about your personal finance with our VIGOR workshop.