Do you ever find you get to the end of the month and have little to no money in your bank account? No matter how hard you try, every month is the same. It can be so de-motivating to even try to save money when you seem to end up with the same result. If this sounds like you, keep reading as we have some great tips to help you stop this unhealthy circle. So, why do you never have enough money?
Lifestyle Inflation
Lifestyle inflation is an increase in a persons spending habit when their income goes up. Making it difficult to get out of debt, or save any money. Lifestyle inflation is generally what causes people to get stuck in an unhealthy cycle of living pay check to pay check. Only just managing to pay their monthly bills and certainly not having anything left for savings.
A lot of us live within our means. We see we have £1000 in the bank that month so we think we should, or could spend £1000 that month!
Be Aware
The ‘buzz’ you feel when you make a purchase is only a temporary thing and shouldn’t be relied on for happiness. Even a few minutes after you’ve made the purchase, the feeling will go away, leaving you with a void you feel you need to fill.
Try to make yourself feel that buzz another way. Perhaps go for a walk if you’re getting that online shopping itch. It generally means you’re bored, or don’t have enough stimulation at that moment so your brain makes you feel as though you need to make that purchase.
Pay Yourself
You make more money so you spend more money. However, just by being aware of this can help you get out of the cycle. Set yourself a specific amount each month that you can spend on things that aren’t bills, and stick to it. Even if your income does go up, it doesn’t mean your spending has to as well.
You could even set up a separate bank account you can use to save some money. Set yourself up a direct debit that takes out a specific amount each month and places it in your savings account. That way, it’s as though the money was never there to begin with. Each month you top up your savings without even noticing.
Make Debt Manageable
Paying off smaller debts first will give you the motivation to tackle the bigger debts such as mortgage, car…etc. Once you start to see your debt clearing quickly, it will motivate you to keep going. This might sound like a backwards way of doing it. However, it has been proven to work much more effectively this way.
Falling For Consumer Traps
Say you’re browsing through your social media accounts and come across someone using or selling a camera. They tell you how amazing it is, and that it’s on special offer for the next 24 hours. You immediately know you just have to have this camera. Even though you have probably gone your whole life until now not thinking about or needing this camera. It all of a sudden becomes all encompassing, it’s all you can think about until the itch becomes too much and you buy it.
This is the power of marketing and of social media. You’ve now just bought something you really didn’t need and you’re £300 down! Why? All because your brain made you think you must have it. So, how do you stop this from happening again? If you come across an advert like this in future, put your computer down and go and do something else. Go for a walk, do some exercise, bake a cake, call a grandparent. I can almost guarantee, once you start doing something else, you won’t think about that advert again. Saving yourself money in the process.
Test yourself to see if you really want it or need it. Walk away from the object you’re thinking of buying. If you find yourself thinking about it or needing it a week or so later, then perhaps you should buy it. However, chances are, you won’t think about it again.
Consumer traps are made for people to want to buy there and then with a click of a button. People are generally lazy buyers, which is what marketing folk are counting on. They see something shiny that other people seem to love and have, so we want it too.
Hopefully some of these tips will help you stop the never ending circle of why you never have enough money, and actually help put money back in your bank. If that doesn’t work, you could always trick yourself into saving money with this great guide.
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