Over the past few weeks we have talked about setting up the right foundations for a successful budget. You’ve spent some time understanding where your money is going (if you were really honest, where you could afford to cut back a little) and you’ve set some goals for where you want to be financially.
Now comes the exciting part!
Remember how I asked you to write down why those little spending treats were so important to you? As well as why it was important for you to change your financial situation? Well we’re going to start weighing those up against each other – and the good news is, it doesn’t have to be all or nothing!
It’s all about compromise…
If you’re anything like me, you simply cannot fathom going without your daily latte. It’s a habit that has gradually grown from a ‘work only’ thing to a 7 days a week, I-will-return-that-coffee-if-its-not-brewed-just-right, kind of habit.
Saying I will forego coffee altogether is not a very realistic or achievable goal for me (remember our SMART goals from last week?) but I also know that my daily $5 coffee habit is costing me $1,825 a year!
So I personally negotiated with myself and my bank account to reach a little coffee/savings compromise. I bought a coffee maker and now take my coffee to work each day and it has started to add up to some serious savings.
Can you have your latte and drink it too?
It’s time to put your own negotiation skills to the test!
Step 1: Pull out your goals from last week as a reminder of what you want to achieve.
Step 2: Sift through your expenses and search for areas where you might be able to save. Maybe you can substitute your $5 coffee with a home-made one or perhaps you could shop around for a better deal on your phone plan, energy bill or car insurance?
Step 3: Then, add up the savings! As we saw with our spending – it doesn’t have to be one big-ticket item that gets you over the line, a few dollars here and there can add up quickly!
If you need some extra girl power to help you through this one, pop over to our private Facebook group here and ask our community for some ideas. We all know two heads are better than one…So imagine what a few hundred heads could do!
See you next week!
Your Brighter Financial Future Starts Today.
Founder of Women with Cents, Finance Fanatic and Proud Mummy
The information provided by Women with Cents is general in nature. It doesn’t take into account your objectives, personal financial situation or needs. Think of it as educational material in which to help you make more-informed decisions. We recommend you obtain financial, tax and credit advice specific to your situation before making any investments or financial decisions.
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