Tips to Improve on Your Finances

ZenHabits.Net has a lot of articles that helps people improve their financial situation. Here’s one that gives ways to trick yourself, to get around obstacles, and to boost your accounts, without it hurting. I have chosen the ones most relevant to me. I have also added my own notes.

1. Use cash. Instead of charging things to credit cards or debit cards, use cash for non-bill spending such as eating out, gas, groceries. Spending cash makes the spending more real, and there’s an added advantage of knowing when you’re out of cash, instead of spending more than you can afford.
2. Use the envelope system. It’s the same idea as using cash for spending, but in addition you use envelopes to split your spending cash into categories. My non-bills categories are groceries, gas and miscellaneous spending. Three envelopes, and when they’re empty, I’ve spent my allotment. Note from AngPeregrino: Have yet to personally try this, but it does make sense don’t you think. It keeps us from overspending.
3. Small weekly savings transfers. ZenHabits got this idea from Trent at The Simple Dollar, who automatically deducts $20 a week from his check to savings. Note from AngPeregrino: I’ve started doing this by transferring a set amount from my payroll account to my savings account every payday. The next tip is on setting it up.
4. Use online savings.ZenHabits uses Emigrant Direct for this. But there is also ING Direct . These banks not only earn about twice the interest of a normal bank savings account, but it also helps in that it’s not as easy to withdraw money … making it less likely that you’ll get money out on an impulse. Note from AngPeregrino: the Philippine version of this online savings system is BPI Save Up. It has the same concept. It has higher interest rates, and it’s more difficult to withdraw. If you know of any other bank that offers something like this, I would like to know.
5. Stay home. Going out makes you more likely to spend unnecessarily. You eat at restaurants, go to the mall, stop at the gas station for snacks. It’s hard to avoid spending when you’re on the road. Instead, stay home, and find free entertainment. It’s also a great way to bond with your family.
6. Keep a 30-day list. If you have an impulse to buy something you don’t absolutely need, put it on a 30-day list. You can’t buy anything but necessities — everything else goes on the list, with the date that it’s added to the list. When the 30 days are up, you can buy it — but most likely, the strong urge to buy it will be gone, and you can evaluate it more calmly. Note from AngPeregrino: I think this is one of the best tips here. Try it, it really works!
7. Declutter. By getting rid of all the excess stuff in your home, you not only make your life much simpler and more peaceful, but you make it harder to buy stuff that will just clutter things up again. Once you’ve simplified your home, you won’t want to go back. Note from AngPeregrino: Amen! Amen!
8. Lend and borrow. Give books and clothes and toys you don’t need anymore to your friends and family. If you need something, send out an email asking if anyone has it. Chances are, they’ll give it to you for free if they don’t use it anymore.
9. Teach your kids about advertising, saving, earning, and gift-giving. If you have kids, educating them about money will save you a lot of money in the long run. If they know about how advertising influences them in tricky ways, they’ll be less likely to demand (OK, beg and plead for) the latest fad toys. If they know about saving and earning money, they’ll respect the money that you earn, and that you are trying to save. If they know that gift-giving doesn’t have to be about spending a lot of money (see above), they won’t necessarily want expensive stuff.
10. Find happiness in life, not spending. Many times people buy stuff because they think (subconsciously perhaps) that it will bring them happiness. They just HAVE to have the latest gadget or shoes or cars. It’s so fun! And yet, you buy that stuff, and you’re only happy for a day or two at most. Then you just need to buy more. It’s a never-ending cycle. Instead, learn to love life. Find joy in nature! In the people around you! In doing something you love! In exercise and meditation! There’s so much in life to make us happy, there’s no need to find it in spending.

The original article is here. What about you, what tips do you have to improve our finances?