Self Improvement for Financial Improvement

There are two ways to improve personal finances:  spend less or earn more. If only life were that simple. In the current economic environment, earning more is not an option for many. Indeed, earning less is a prospect being faced by those who had previously considered themselves to be in secure employment. Focus must therefore be on spending less.

A lot of individual spending is driven by habit. How many times do we walk around the supermarket and pick up the same items? Too tired perhaps after a day at work or looking after children to notice that alternate brands are better value. Habitual behaviour is triggered by an emotional response. Retailers are experts in the marketing techniques that are sure to press the ‘buy-now’ button in many of us.

By implementing some simple self improvement suggestions it is possible to reduce our susceptibility to these marketing ploys and become savvy shoppers with improved personal finances.

Where to start?

Notice what triggers spending for you. When are you most likely to spend money on the things you don’t absolutely need? Do you spend money when you are down, to cheer yourself up? Do you go shopping when you are excited and buzzing?

 Once you have identified your triggers, you can control them by managing your emotional responses. Without the increase in self awareness the triggers will prompt the spending before you even know what has happened.

Take some time. Look around and see where you have spent money. What was the trigger for the purchase? How could you have distracted yourself? What would be a good, alternate behaviour in the future?

What are your weaknesses? What temptation do you find it impossible to resist? Again, by increasing self awareness you can gain self control. What strategies can you come up with to strengthen your will when temptation rears its ugly head?  This does not mean you can never visit a casino again or buy another pair of shoes. It simply means that you will be in control. You will not be the victim of emotional spending. Set aside an allowance to spend on your passion and stick to that allowance. Bring some thought to how you are spending that money. You may even find that the compelling nature of the desire weakens once it is identified.

 Do not put yourself in impossible situations. Everyone will overspend if they shop when tired, hungry, stressed or depressed.

Give yourself some support. Do not go grocery shopping before your meal. Go afterwards. You will have more energy and you will not be hungry. Those impulse buys will be so much easier to resist. 

If you are feeling low, take action to improve your mood before opening your purse or wallet. Spending more money, especially money you cannot afford, is not going to improve your mood. It could even worsen it. Make a list of things that can cheer you up – think about dancing, music, good friends, upbeat films, exercise, sunshine, gratitude journals. Whatever works for you.  

Build up your own self-esteem. Be proud of yourself and what you have achieved. Remember the good stuff. Do not compare yourself to others. Do not compare what you have or do not have. Be thankful. Do not give in to peer pressure. Do what is right for you.

By increasing self awareness and focusing on self improvement you can also improve your personal finances. As an added bonus, you will notice improvements in many other areas of your life too.