Saving money is a challenge. We all know that spending less helps save money, but what about all the unexpected excesses? A pair of shoes you’ve been eyeing just got on sale. A relative decided to visit Florida for the first time, and now everyone is planning a trip to Orlando. Regardless of the reason, there are ways to successfully save your money even when unexpected things happen.
Take time to realize what are you habits of spending are and decide what’s your goal. After you have a set definition of your goal, adjust your budget to include unexpected expenses, and try to either isolate your money or forget about it. Richard Thaler from the University of Chicago won the Noble Prize in 2017 for his idea of financial behavior. If you assign your money a job to meet your goals, you will be successful in saving money.
Also, budgeting to include unexpected expenses will make saving money a lot easier. Set aside money just for you to spend and try not to pass that goal. If you realize how your mind thinks, this will help you to budget. For example, if you are a big-picture person or detail-oriented, make a plan that fits you. And before purchasing remember your goal. Is it necessary for me to make this purchase?
Written by Iris Arden (Ramon Inc.)