- Just like working out, sometimes it is better to have a partner. Setting some goals with an accountability partner can help you stay on track. A couple of creative ideas are:
- Credit Score challenge: Baseline your credit score and see who can improve their score the most month over month or quarter over quarter. Make sure you are looking at the same credit bureau because they all score a bit differently.
- Start a monthly discussion group, like a book club or game night, with some friends to have discussions about good money habits. This is a wonderful way to hear creative ideas from others and get inspired.
- Make a Financial Vision Board. Vision boards are regularly touted for other aspects of your life, so why not the financial part of your world? Looking at this in your space will remind you to stay on track with your financial goals.
- Create a spending mantra. This is especially great when you have a particular savings goal. Ask yourself, “Is this _____________ better than Australia next year?”
- Shop alone. How many times have you been caught up in the “That looks amazing on you. You have to get it,” vortex only to wonder when you would wear those parachute pants ever again?
- Evaluate purchases by cost per use. This is like looking at the return on investment of investments. For things like the latest tech toy, kitchen gadget or clothing item, think about how often you will use or wear the item to decide if the cost per use is worth it.
- Appreciate what you already have rather than what you do not have. If you look around your space, there is plenty you have already spent money on that could use a few more uses to justify its original purchase price.
- Spend on who you are today rather than who you want to become. Spending money on the theoretical rather than your real self will leave you with things you aren’t going to use collecting dust in your cupboards or closets.
- Spend on experiences versus things. There is study after study that shows that experiences provide more joy for your dollar. Also, as you get older experiences are valued more than material possessions.
- Separate savings from checking accounts. If you see it, you will spend it. Putting your savings at a different financial institution can provide an even better barrier to ready access to savings funds. You can have your paycheck deposited into a couple of accounts even if they are not at the same financial institution. Use this to immediately funnel money towards savings rather than spending accounts this way you will not even miss it.
- When starting to tackle credit card debt look at the following:
- Pay off some small balances to create momentum for tackling larger balances.
- Look at the interest rates. Typically, you want to pay off higher interest rate debts first or look to consolidate balances, if possible, into the lower interest rate cards.
- Inquire with the credit card if there is a program to help you pay off your debt faster by reducing your interest rate.
