Mastering your money habits in the new year can leave with a substantial change in your bank account balance. There is no magic bullet of knowing your money habits and being their master. People are unique. Our cravings too vary like that. Therefore, you must understand a few things about yourself and the way you spend money for you to make changes and become a star at managing your money in the new year. Read on and understand ways of breaking bad spending habits in the new year.
Understand the psychology of money
The money you spend will pain you when you see it going away. Thus, spending cash will feel more painful than charging your card, or using mobile payment solutions. When you want a tight grip on your money, you go with cash spending. There is a reason why casinos give people chips to play. They know spending cash will feel painful, so they convert it to something that you do not associate with money.
Another psychological tip about money is that you can only work on what you track. You must know where your money is going. For some people, use of credit cards comes in handy because they have the accountability report. They will know where their money went. Unfortunately, that takes a while before you see the report.
Remove the automatic checkout options online
When you first check out online, most retailers will ask you to allow them to retain your card details. After that, you will check out almost automatically in future purchases. You will only confirm a charge on a particular card, and whoa, the transaction ends. Thus, you can make a major mess to your financing in a fraction of a second. You need to force yourself to input the details all the time so that you can at least think about the money that will be coming out of your bank account.
Read also: Savvy Ways to Save Money Today
Use website blocking software
Make sure you have software to block shopping sites so that they remind you that you did not want to go shopping. You have to list everything you want to buy and then buy it at a later day. That is the best way to be in control of your money. You must always work on the things that matter now, with a planned approach. Money matters and you need a planned approach to tackling it.
Use wish lists
Have a list of things you want but do not buy them immediately. Set the cash aside for them. You can keep it aside physically or open a new bank account where you send expenditure money every time. When your expenditure account’s balance is zero, you stop spending and work towards adding money to the account. You must embrace the rule of only buying what is on your list, at least thirty days after you write it. The thirty days will be for you to evaluate your desire and see whether you need the item or you just had impulse instincts.…