Money is usually such an uncomfortable topic, isn’t it? It’s why no one likes to talk about it. Money evokes emotion. Thing is, we all know what we should be doing – you know – budgeting, saving… but there’s a difference between knowing and doing.
- Track your spending by hand. OK, this is going to be a tedious task, but be disciplined in it for at least 2 weeks to a month and I guarantee you’ll see and make a big change. Challenge yourself to track your spending by hand, in real time for a month. Carry around a little notebook and right after you spend money on something, write it down. It’s tedious, yes, but so eye-opening. You’ll get to see where you frivolously spend and where you can start changing your spending behaviours.
- Do a no-spend month. A no-spend month is a great way to reset habits and save some extra cash quickly. Write down a list of your exceptions — the things you will allow yourself to spend on for the month – this will normally include rent/bond, fixed expenses like your phone bill and internet, and very basic groceries. Lastly, write down a list of free activities that you can do, so you don’t need to feel like a shut-in for 30 days. But it means no spending on clothes, beauty items – unless they’re your basics already on your usual grocery list, no buying take-out and coffees etc. It’s hard but excellent to do and save the money you would have spent.
- Read or listen to one money related topic a week. Very few of us learned about money in school, but there’s no reason we can’t play catch up now — and we have all of the resources that we need right at our fingertips. Challenge yourself to learn one new thing about money each week. Read an article about investing, listen to a podcast about finance, or pick up a basic personal finance book.
- Online shopping challenge: Apply the 72 hour rule. If you love online shopping and are a bit of an impulsive buyer, this is for you. If you’re considering buying anything other than necessities, you have to wait 72 hours before you let yourself press the “Buy” button. Add things to your online shopping cart and if you still want it after 72 hours and you can afford it, get it. It’s simple, but not easy. Enacting this rule creates a huge shift on what you buy and how much stuff you bring into your house.
- Use only cash for a week – month. This one is hard for me because I hardly ever carry cash. However, this is why this list is called a challenge. Using credit cards is a disconnect from physical money and as such, you end up swiping more than you need to because it doesn’t feel like actual money is passing hands. Psychological. The challenge is that when you buy anything, you use cash. Handing over R1000 for groceries is going to be harder than handing over your plastic credit card. It will keep you more aware of what you hand your hard earned cash over for.
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