If you have big dreams, budgeting might not sound like something you're really keen on doing. Of course you want to live a lovely, luxurious lifestyle, but without budgeting you'll usually be unable to make it there. People with an unhealthy money mindset often end up spending with no thought to the future, only focusing on their short term satisfaction and enjoyment. This might not seem so bad when you're young, but the earlier you start to get out of these habits and replace them with smarter habits, the more comfortable and financially stable you'll be as you age. Here, we're going to talk about how you should be budgeting if you have big dreams. Take a look and see what you can do today!
First of all, you need to figure out what matters most to you. If you're not a millionaire you're going to need to know what's most important so you can allocate money to those things accordingly. For example, do you like to go on trips with your family? If you do, then you might want to cut back on things like meals out and other things that are a drain on your finances.
Write a list of your top priorities so you can continue living a life you enjoy while taking care of your finances.
Usually, the urge to spend comes from thinking that you haven't got enough already. Whether it's more clothes, a new gadget, or something else, really look at what you already have. You already have everything you need, and purchases like this will only bring short term happiness. When you can be content with what you have and where you are now, you'll feel so much better.
Knowing how and when to save money will help you to make smarter buying decisions. For example, if you're looking at buying something, could you buy it second hand? Alternatively, is there a way you can save money, such as using a discount code or a cashback site? Don't shop without doing your research or considering your other options! Sure, it's nice to have new stuff, but it can be far more satisfying to find a bargain.
You never know what's just around the corner, so having a plan in place for emergencies will protect you and give you peace of mind. You can look at credit cards for bad credit no deposit if you really need one, but you should only ever consider using it if you have a genuine emergency on your hands. You should do your best to save up an emergency fund so you don't have to use credit. Consider every eventuality, including losing your job and taking a pay cut. Having at least 6 months of living expenses in the bank is usually a good idea.
Having financial goals will help you to come up with a plan and work towards your dreams. Set your goals in stone by taking the time to think about them and write them down. How much money do you want to have? What sort of lifestyle would you like to live? How do you think you will achieve this? Keep your goals somewhere you will see them every day so that they are fresh in your mind.
Impulse spending, as we previously mentioned, is pretty bad for your budget. Even the small purchases can add up, such as that fancy coffee that you insist on having. Instead, why not make your own coffee and buy a reusable cup? This can help you to save a lot over the course of a week/month. Every small purchase adds up, so be mindful with your spending.
Investing in things that will truly enrich your life is never a waste of money. For instance, investing in yourself could give you the confidence to start a side hustle and start making more money, or it could help you to land a better job. Investing in things you know you'll enjoy at home for a long time to come can also be nice and improve your lifestyle, such as a barbecue to host garden gatherings with friends.
How do you feel about money currently? How do you feel this is affecting your ability to earn and your want to spend?
How did your parents feel about money?
What limiting beliefs do you have surrounding money?
There are all kinds of free resources that can help you to improve your money mindset!
Having money meetings with your family, or even just with yourself. Take this time to look at your budget and assess recent spending, as well as making sure you're on track for the goals you set earlier on. Don't get complacent!
If you don't know where to start, get some help from somebody who can advise you. A financial advisor, an accountant, or even somebody you know who is good with money.
Building true wealth is the key to achieving your dreams in the long run. For example, making small investments now can really pay off later. Also, having multiple income streams is the smartest way to make cash, as eventually, you'll run out of time to swap for money like in a regular 9-5 job!