Spending + Saving – Savvy Money Advice for a Better Financial Future

It can be hard to get your money straight, especially in a world that constantly throws financial temptations your way. But, if you follow these few pieces of advice, you’ll be well on your way to creating a better financial future.

A successful financial life is a balanced life

As with life, financial success is about balance. Savvy money managers know that it is best to spend some, save some, and give some away. Unfortunately, too many of us focus on the spending and not enough on the saving.

But saving every last cent can be just as disastrous. No one wants to live like a miser and tomorrow is never guaranteed, so you have to enjoy the moment. Balance is the key. Spend a percentage of your income to live for today, save some to live for tomorrow.

Finally, don’t underestimate the power of giving a little bit away. Recent research reveals that spending money on others can increase our own happiness. Realize that the universe is an amazing place. Whether it is by tithing, donating to charity, or giving directly to those in need, you’ll inevitably reap what you sow. The blessings you bestow on others often return back to you several times over.

Your goals power your financial success

According Dr. Thomas Stanley, best selling author of The Millionaire Next Door, the vast majority of millionaires set financial goals, helping to explain why these people became millionaires in the first place!

Goals create the focus and vision needed to get the most out of life. They are the difference between wandering lost, aimlessly in the wilderness, or driving straight toward your dreams with the red hot intensity of a heat seeking missile.

Sit down with your significant other and set a vision for your financial life. Create two or three solid financial goals and put them to writing. With these goals in place, you’re less likely to be sidetracked by the multitude of financial distractions the advertising world throws your way.

You’re wasting more money than you think

We disrespect our money when we fritter it away. Unfortunately, we do this every day. In fact, experts predict most Americans easily squander 10% to 15% of their salary.

Perhaps you’re paying for a gym membership that you never use. Maybe you fork over money for 165 channels of television, but watch no more than a handful of them. Too many of us still pay excessive bank fees instead of switching to low fee credit unions, and very few of us have investigated whether or not we can get cheaper automobile or home owner’s insurance.

Cut the financial fat and put more money in your pocket. Carefully review your expenses and look for services that you under-utilize or do not use at all. Switch from a high fee bank to a low cost credit union. Finally, see if you can negotiate lower prices for a wide range of services, from auto insurance to cell phone service.

Understanding your “wants” and “needs” helps establish a solid financial foundation

The biggest change you can make in your financial life is to take a step back, examine every purchase, and actively determine if that purchase is truly a “need” or a “want.”

You must make sure your that your “needs” are taken care of first. But, then comes the crucial next step. Realize that it’s impossible to indulge in all of your “wants” and still remain financially healthy. Prioritize your “wants” and indulge in only the ones at the top of your list.

Source: MochaMoney.com