Today’s money hack is related to saving and earning money with a purpose in mind.
When it comes to personal finance, lots of people struggle to control their spending and improve their savings and sometimes it can be traced back to a lack of motivation. Budgeting can be a cumbersome and dull task if you’re not a number cruncher, which is why you need to look into ways to make it a fun and inclusive activity for yourself, if not the entire family you budget for.
However, if you still feel something is missing and you keep struggling to get your finances under control, try link your budgeting attempts to a goal for the whole family. This goal could be something short-term like buying a new television, or saving up for a vacation, or something long-term like saving up for a wedding, house, retirement or a child’s college education. This way, the motivation for saving every possible penny or cent is strong and relevant for every member of the household. The added bonus is that it teaches your kids good personal finance skills.
When you set a goal for your budget, the goal itself encourages you to continue managing your money prudently, whether it is by saving more money or earning more money. You’ll be surprised what a huge difference the right motivation can make towards your financial independence efforts.
This strong driving force for an increase in savings and income can remove the reluctance that is often associated with changing your lifestyle to cut unnecessary expenses, and can even prevent budgeting burnout (aka personal finance burnout).
You can read more about saving money at the following webpage created by the Financial Literacy and Education Commission, run by Office of Financial Education, Department of the Treasury.
Further reading: 10 ways to save money in 2016 by HM Treasury, UK Government.