Financial discipline can seem enviable – those who enjoy financial freedom and don’t balk at saying ‘no’ to that new outfit or that can’t-miss lunch date can sometimes seem a species unto themselves. But it’s not really like that. Financial discipline is nothing more than a habit, and it’s something everyone can adopt and succeed at.
If you’re still not convinced that financial discipline a learned behaviour and not a born-with trait, we’re going to take you through the basic ins and outs of what you can do to boost your financial self-control. Whether you’re saving for a holiday or putting money aside for a deposit (or even if you’re just looking to get out of debt), you will find the tools you need to meet every one of your saving goals.
Make a (real!) plan and stick to it
The vague notion of ‘saving money’ isn’t really going to take you any closer to meeting your individual financial goals. Without a plan, you will find yourself putting a couple of hundred dollars away one week – only to find yourself dipping into those savings when the bills arrive again.
By making a financial plan that looks to all your expenses and realistically outlines what is possible, you can understand exactly where the goalposts are and whether you’re heading in the right direction. Set achievable benchmarks for yourself at certain deadlines and make them specific – this way you can monitor how on-track you are to meeting your end-goal.
Once you set a weekly budget, it’s critical that you stick to it. It’s a good idea to let your friends and family know your plans for saving money, as this will encourage them to back-off with the expensive dinner dates and also help in holding you accountable to your plan. Remember, start by setting realistic goals that you can meet from week-to-week and, soon enough, you’ll be on track to making that deposit or taking that holiday.
Ditch the credit cards
Most people couldn’t imagine life without the convenience of a credit card, but this simple little plastic item can wreak havoc on your ability to make well-considered financial decisions. By curbing your credit card usage (or getting rid of your credit card entirely) you can help reduce any overhanging debt and put yourself in a position where every purchase will be coming straight out of your own savings balance – this means these purchases are more likely to be properly thought through and evaluated against the overall budget.
At first, giving up your plastic payments will be a difficult habit to break. However, after a couple of months you’ll find yourself feeling considerably lighter – in that you’ll be free from additional debt and you won’t have made nearly as many unnecessary purchases.
Curbing your credit card usage, or getting rid of your credit card entirely, is an easy way to stop one of the biggest everyday debt-causing mechanisms in its tracks. Before you make this commitment, it is a good idea to put aside some money as an emergency fund – because if anything unexpected arises, you don’t want to be automatically reaching for that credit card again.
Consider your alternatives
Diligent budgeting and keeping track of everything that’s leaving your account makes it pretty easy to discern which of your weekly expenses are necessary, and which expenses aren’t really that important.
While we’re not suggesting you make a complete transition to a Spartan existence, don’t be afraid to scrutinise (and we mean scrutinise) every luxury expense in your weekly spend. You might find some luxury items and events are just costing too much money to be worth your financial headache, while others might not be justified at all in your current savings plan.
If you have recurring expenses that automatically deduct from your everyday account, consider alternatives to these payments. For example, a gym membership might be foregone for a twice-weekly outdoor training with friends, or those vegetables you source from the local grocer might be found elsewhere, for half the price. Making the effort to shop around can save you significant money in the long run. By limiting your overall weekly spend, and considering alternative purchases wherever possible, you start to build the habit of financial maturity – this is one of the most important attributes when it comes to acquiring effective financial self-control.
Seek assistance from a financial planner
Seeking assistance from a financial planner can grant you a fresh perspective on ways you can make headway into achieving your weekly, monthly and yearly savings goals. A good adviser will also help identify those areas where you are falling down in your path to financial security.
By seeking assistance from a financial planner, you’ll know exactly where you can make additional savings, what’s prohibiting you from doing so on a weekly basis and how you can increase your financial discipline to reach your financial goals as quickly and painlessly as possible.
