Money matters do not need to be complicated. Making the right financial decisions with your money is essential to reaching your financial and life goals sooner. Staying ahead of your personal finances will help you stress less and put you in control of your future. With a few easy changes to how you manage your money, you can do better with your personal finances. Here’s how.

Be more intentional with your money

Our emotions affect the choices we make with our money. Our emotions play a huge role in how we spend, save, or gift our money. If we can learn to manage our emotions better, we can learn to manage our money better. We will splurge less and prevent ourselves from buying things we really don’t need, reduce clutter and the need for storage. Many people today, including myself, do not realize how much money we spend on stuff that is so unimportant in our daily lives. But if we are more intentional with our money, we will spend less and save more money.

Take a value-centered approach to spending

The term “Jonesing” is the notion or idea of comparing oneself to a neighbor or friend from a socio-economic perspective. The premise of “keeping up” is to try to own the same “expensive” things as your friends, colleagues, or neighbors. When done, this can result in living beyond your means, and spending money you do not really have. But when we take a value-centered approach to our lives we engage in more mindful decision-making and make more conscious decisions around spending. When we live by a set of values, decision making, or spending is strategic and well thought-out.

Budget your money for today and tomorrow

For some, personal budgets may feel restrictive or like dieting.  It’s understandable. A budget is a guide to help you keep track of your money or money in, money out. It is a personal or household roadmap that compares and tracks your income to your expenses and usually for one month. Budgets give you the freedom to spend within your means. In other words, if you budget your spending, you won’t over-spend and live beyond your income.

You can budget many different ways such as pen and paper; Microsoft Excel®; Google® Sheets, or use a digital online budgeting app. It really comes down to what works best for you. You may also want to evaluate or try one or two tools before you settle on the right one.

Think long term about your personal finances

When it comes to managing your money, taking a long term approach is a recipe for success. Researchers agree that thinking about the long-term implications of your decisions, and your money, can set you up for living a more comfortable life. This holds particularly true when investing your money in the stock market. Market volatility becomes less important and it will not keep you awake at night.

Seek financial advice

In the end, you do not need to make a single financial decision without expert advice unless you feel confident about your choices. Many people find advice online. This includes everything from Money Influencers to your Bank or Credit Union.  Some of us prefer a more traditional approach which is to work with a financial planner or financial advisor. But like with most things, figure out what works best for you.

You can do better with your personal finances and achieve better financial outcomes. Think long term when it comes to your money.

Updated: March 17, 2023