The pandemic has posed as a painful test taking away people’s lives and jobs. Not holding enough money is something most people fear; and not spending is definitely hard – there’s no better time to learn how to spend less and save more.
Cutting down on your spending will give you more to allocate towards your emergency fund and investments. So, how do you cut down on the spending, intentionally? We’ve put down a few easy steps to being intentional with your money and creating a budget that works for you.
Know your values and make a list
Do some soul searching to understand your true values and be confident in them. Your values are your foundation and it should be reflected even in the way you manage your money.
For instance, does having money give you the fulfilment your seek or does having money drive you to give back more to the community? Imagine having a limitless bank account and write down the emotions that you feel and what you would do. This might help align your money goals with your values.
Determine your goals
Talk about goals, determine your financial goals and how much you will need to save and over what time frame. With a few calculations, you can work out how much you need to save each weekly or monthly to achieve this goal. Your goals need to align with your values as well to take care of the future.
How to set goals
Think about what area you currently want to focus on improving in your life. Would your priority be buying a home, saving for an education, or even a huge trip after the pandemic blows over?
A good start is to set goals for different timelines. For example, set monthly, weekly, and daily goals that will help you get to your one-year and five-year future goals.
Make meaningful decisions
Now that you’ve got clear goals, you’re ready to decide what part of your spending needs trimming. The easiest and safest way to save money is to spend intentionally – start with areas where you’re spending by way of habit, like grocery shopping.
Maybe you might find your items at a cheaper price elsewhere. Look for smaller wins that don’t hurt much and then start looking more closely at things that feel like a sacrifice.
Practise money mindfulness
Your core values can help you make more mindful decisions in your daily life, but only if you recognise and are familiar with these values. Understand your personal values better and align your goals with them. That way, most money-saving decisions will be easier and relevant.
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