Step one:
Track Spending Habits
I began to track my spending habits through my bank. My bank offers a pie chart where it shows how I spend my money every month. I started noticing the biggest chunk was coming from entertainment, which I think restaurants is a part of. This included Starbucks. Oh no the horror!! I didn’t even go to Starbucks every day but I spent enough money there to make me cut down. This year I haven’t had any Starbuck so far, yay me!!
Tracking my spending and seeing exactly where I spent money every month helped me face the fact that I was over spending on unnecessary things. It helped me take responsibility for the financial choices I was making daily. It helped me prioritize my spending. The more you know and understand how and why you spend money, the better choices you will learn to make.
Step two: Sell or Donate
I donated or sold items that I wasn’t using or were no longer adding value to my life. Wether it’s was a bed, chair, books, or clothes; I learned to let go but was thankful for the purpose they had served me.
I opened up a Postmark account to sell my unused clothes and started donating/giving my unused clothes away! It felt great to get money back into my wallet! To do this I used the 6 to 3 month rule. If I haven’t worn it in 6 months sell, if it doesn’t sell in 3 months, give it away to a friend or donate! All these ways enriched my life. Giving to a friend in need felt incredibly good, even better than donating to Goodwill because it was going to someone I knew and loved. Selling on Poshmark added some much needed money into my bank account! My son started college and it’s tough funding it on my own as a single parent. A little bit of money goes a long way if you use it wisely. Like groceries, gas, and bills, they all need to paid for each month and taking care of those things is priority! So thanks to building this trusty habit I am actually starting to save money.
Step three: Unsubscribe From Tempting emails
I unsubscribed from email lists of all sites that sell things I don’t need! Have you ever been checking your email and gotten stuck on a clothing shop you subscribed to at some point? Then loose track of time looking for stuff you weren’t even looking for? This resulted in me buying something just because it looked good; even though I didn’t even need it at all! Then I would look at my bank statement and ask myself why? So awful! Done and done with that. I unsubscribed to tons of clothing sites and it made a huge difference in my bank account. No joke. Try it!!!!
Step Four: Shop Wisely
Now when I shop, I ask myself, “Do I need it and why?” I make sure that whatever I bring into my life and home is actually serving a purpose for me. This simple action has stopped me many times from buying something I will regret having bought later.
Step Five: Shop and Payoff
If you are going to shop, try finding sales. If you have to buy at full price don’t charge it. If you want to charge it because the store offers a percentage off your purchases, do so only if you can pay it off in one month or less. If you can’t do this then it’s not worth it, unless you can charge at a 0 percent interest rate or extremely low one. I have financed big purchases but at 0 percent interest for a certain period of time. If it’s something you really need, make sure to pay it off as soon as possible. Credit card debt sucks! Doesn’t feel good or look good on you. :)) When you’re stressed about bills it shows in the way you act and feel inside.
I’m much happier since I started this financial freedom journey. Don’t get me wrong I still love to shop, just not as often. I restyle my outfits a lot and thrift whenever possible. I use these tips I’ve shared with you because we should all enjoy life to the fullest. Being money savy is always in style!
