4 “don’t you dares” to Begin Changing Your Attitude Toward Money

Many millennials don’t give their cash flow much thought because they typically live paycheck to paycheck. Though philosophically sound, this “live in the now” mentality could eventually cause financial problems. Everyone is taught to have aspirations and make money, but little to no information is given on how to do it effectively.

Financial freedom is a blessing for people who are just starting to make money. It is amazing to be able to live your entire life without having to worry or depend on anyone. Words like budget, savings, and investing may make this way of living taste unpleasant.

According to the book The Financial Diet, the greatest approach to save is to start young and early, when compounding may work its magic. Everyone has specific lifestyles and possessions they picture for themselves in their heads, but are these things truly essential to your survival? Most likely, “no” will be the response.

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This article will teach you 4 “don’t you dares,” which will prevent you from chasing after money and enable your money to work in your favour instead. Make your money your boss by taking control of your finances.

1.) Don’t you dare spend more than you can afford

It sounds posh and wealthy to have credit cards. Who wouldn’t want to experience that? Do you have a separate line of credit that is only for you? YES!

Despite how idyllic it may sound, if you don’t use your credit card responsibly, it may end up being an obligation rather than an option. Yes, having a credit card helps you build your credit and it might serve as an emergency fund, but are you considering it extra cash?

Use your credit card only for purchases you can be sure you can make in a month. If not, you should reconsider making the purchase.

2.) Don’t you dare fall into the CEO lifestyle

You might wonder, “What is CEO lifestyle?” A CEO is constantly thinking about how their lifestyle should be, how they should show themselves, what they should own, and other things as the leader of a firm. This CEO lifestyle attracts a lot of victims.

You might believe that since I work at “xyz,” I should live at “abc.” But who did that define? Depending on your sources of income, you must establish a budget for yourself. The simplest method to keep track of your spending and establish financial objectives is to use a budgeting tool. If an app is not an option, simply keep track of every expense you make, even the smallest one. You can analyse where you are wasting money unnecessarily with our help.

The 50-30-20 rule is another method recommended by The Financial Diet for preventing overspending. According to this plan, fixed expenses like rent, utilities, and other costs should account for 50% of your income. You should spend 30% of your salary on varying expenses like food, entertainment, etc. Your savings account should receive the final 20%. Although each person’s percentage may be different, you get the concept.

Instead than concentrating on the lifestyle you believe you should have, concentrate more on the life you can afford.

3.) Don’t you dare go a week without checking your bank balance

Establish the practise of checking your bank account at least twice every week. By doing this, you’ll remain realistic about your financial situation and determine whether you should make the buy you’ve been considering for a week. Don’t live in denial and avoid checking your balance. You would know exactly what amount to anticipate in your bank account if you are sticking to a budget and tracking your expenditures.

If you are just starting this habit, you might not feel like doing it anymore after the first couple of times. But it’s all right. Consider a dieter who flagrantly disregards the chocolate’s calorie label. They decide to live in oblivion while being aware of how bad it is for their bodies. You must confront the hated portion of being on the money diet and proceed from there.

4.) Don’t you dare imagine that savings will just magically appear

You’re making a big error if you assume that saving money and investing should wait until you’re more experienced. You are the same person in the present and in the future. Putting things off for the time being will simply put pressure on you later.

Taking money out each month won’t break the bank when you’re young and have few commitments. Starting savings early gives your money more time to grow, which is a secret to being wealthy. Let’s look at the rule of 72, which predicts how long it will take for any investment to double in value, to help us grasp this. Divide 72 by the yearly interest rate, or return, on any investments or savings accounts that you have.

The true decision you need to make is whether to spend your $100 now or save $200, $400, or more to spend later.