We all have different relationships with money and see it differently. For example, some of us see it as a tool to help us reach our goals, and some see it as something to buy stuff with. However and whatever you see money, it is your relationship with money that is the key. And an understanding that relationship will help you manage your money better. Your relationship with money started when you were young. How did your parents handle money? Were there arguments about money? It is your history with money that truly affects how you are handling it now. That being said, you should respect your relationship with money and learn from it. And one the way that you do that is to set financial boundaries in order to stick to your budget or spending plan. Below are several tips to help you respect your relationship with money.
Time Limits
Set a time limit rule about spending money. The rule should say something like, “I will not buy anything over a specific amount; let’s say $100, unless I have thought about it for a specific amount of time, 24-48 hours.” During this time you are asking yourself why you need to buy this item and how you are going to pay for it. This rule will make you really think about some of your spending which is something that many of us just do not do.
Ask Friends and Family
Set a specific dollar limit above which you must discuss any non-essential purchases with friends or family. Sometimes spending money is all about emotions and getting buy-in from friends and family will sometimes take emotions out of the picture and the focus can truly be on the need and not the want.
Set a Pay in Full Rule
Another way to stay inside the boundaries of your budget or spending plan is to set a pay in full rule. Map or plan out when and how you will pay off the item in full. Your rule could state that if you cannot pay for an item in full by a certain time frame, which could be today or next week or next month, you do not buy it.
The Layaway Option
Consider layaway as an option to stay within your budget or spending plan. After you determine that you truly need an item but just cannot afford to pay for in full today, think about buying it on layaway. Many companies have brought back layaway and it is a good option for some who need right now but cannot afford right now.
Stick with Cash
Use cash to make purchases. Cash still works everywhere you go. Studies have shown that when you use cash to make purchases, you spend less. It seems that the cash leaving you purse, pocket, hand, and wallet hurts a little bit more than the plastic stuff.
Following these simple but doable tips will help you stay within the boundaries of your budget or spending plan and may help you to better understand your relationship with money and what works best for you. Because your relationship with money is different, the same thing that works for you may not work for the next person. Respect the relationship.
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Love the time limit hint. I have often bought things on a whim then 2 weeks later it still hasn’t been used. We were talking about it this morning. We got a free lamp for our bedroom, which we were going to buy. It’s been 5 weeks and we still haven’t put it in the bedroom.
Sometimes you really just need it as much as you first think.
rene@personal loans recently posted..Apply These Tips To Your Buying Plan
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