They say money doesn’t make you happy, and it’s only up to you to attain happiness in life. Now, to some extent, that’s true, but as long as the money keeps tax collectors away from your doorstep, it can make your life way easier.
Unfortunately, it’s not always the case that you’re living your life to the fullest in financial independence. There are times when you find yourself surviving from one paycheck to another, which isn’t fun at all.
And if you happen to be in a similar situation, the best thing to do is introduce some self-discipline to the way you spend your money – this is, of course, if you cannot increase your monthly income right away.
Here are the top 3 tips for better money management coming from broke people.
Set up a no-spending day
Understandably, you want to spend some money on yourself – after all, you have deserved it after a hard working month. But do you need to spend $250 to get those AirPods Pro? Is that restaurant dinner vital for your survival? You get my point.
As someone who used to be a broker, I can say that introducing some discipline to your spending habits can have a world of difference to your budget. In this sense, setting up a no-spending day is one of the best tactics.
This means you dedicate one day in a week or two weeks when you spend zero cents for meals, clothing, or anything else. Hungry? Prepare a larger meal a day before and get by today.
Due to the limitations of a no-spending day, it’s best to set it on the weekend. This ensures that you don’t have to commute through the city, and you can safely chill at home, reading a book, or watching a movie.
You can even do iGaming for what it’s worth. And it doesn’t even have to be immediately associated with a real money deposit. For example, a PlayAmo online casino has set up a complex risk management system that allows you to use the already available funds to play your favorite games without risking too much money. If it seems that you’re losing too much, it’ll either send you a notice or stop your session right away.
On top of that, it also features various casino deposit bonus codes, which you can use during a no-spending day to increase your budget by adding the bonus to the already-made deposits. In short, the prospects of spending time during a no-spending day are abounding, whether it’s casino gaming or reading.
Have subscriptions in check
Today’s online world is all about subscriptions. Various services are already moving from individual purchases to monthly subscriptions, which allow you to get your hands on music, movies, and other services without spending too much money.
But even though those subscriptions reduce your spendings quite a bit, it’s still easy to spend way too much money on services that you don’t need. Subscription companies make it incredibly simple to sign up for their movie or music streaming services, link your credit card, and be entrenched in a service that slowly sucks your money out of your wallet.
For example, you purchased a Hulu subscription for the new TV series, The Great. Once you got it, you binged the entire show, and now it’s sitting on its own – you’re not really into other shows. But the subscription fee keeps on deducting every month, which may not seem that much, but it has a significant compound effect on your budget.
If you have any subscription that you’re not using that extensively, get rid of it right away! Once you reevaluate all of your services and cancel some of the unused ones, you’ll finally get some financial headroom, because, trust me, it’s all about a compound effect.
Now that you have set up a no-spending day and canceled some of the ongoing subscriptions, what should you do with the freed-up money? Well, since you’re already used to getting by without that extra cash, the best long-term solution to your financial problems is to create a savings account.
I’m still going to bring an example from the time when I used to be broke myself. So, back when I didn’t even have enough money to last until the middle of the month, I used to badger my friends and family members to lend me some money. And what’s even worse, I wasn’t even able to repay them in time.
I don’t have to explain how humiliating this kind of situation is. At this point, it’s not even about your financial hardship; it’s about how you destroy your image for your loved ones.
That’s why the savings account is such a great thing. Whenever you find some extra money in your wallet, you immediately put it in the deposit or something similar. When the time comes, instead of borrowing money from someone else, you’ll use the savings to get by.
And even if that time doesn’t come and your savings remain intact, your efforts still won’t be in vain. You can use the money to buy that laptop or TV that you always wanted, or even store it for your retirement plan.
Be responsible with your money
When you’re broke, one way to alleviate that problem is to get a better-paying job. But some people don’t have that option. Does that mean that they don’t have any other option to conduct their financial life better?
Healthy financial life is about how you interact with money and less about how much you earn per month. In this guide, I brought some examples of money management that broke people have learned from their experience. And whether it’s limiting your spending days, canceling unnecessary subscriptions, or setting up a savings account, you can take your spending routine in check right now!