Discerning the difference between a want and a need can be a blurry. When instant gratification and impulse take over it’s easy to cave and splurge on material items. With so many ways to spend, making fiscally responsible decisions can be hard. Financially savvy individuals are mindful of their money. This may be difficult for you, but just know a lot of other people are in a similar situation. Keeping a balanced budget takes discipline, but you can do it!
The spending habits of the elite may be lavish, but they are not foolish when it comes to keeping finances in order. How exactly can one learn to manage money effectively? Let’s start by understanding the basic principles.
DISTINGUISH THE DIFFERENCE
We want what we want when we want it and we want it now! Distinguishing the difference between a want and a need can be challenging. We want our daily chai from the local coffee shop, but do we really need it? Keep in mind, little expenses add up. In the Sugar Bowl it can be easy to slip into fantasy mode and not have a care in the world about our spending habits – after all, it’s Daddy’s money right? Remember, it may not seem like it, but he’s mindful of where his money goes, too. If money management is a weakness for you, your significant other will likely be happy to help you put together a simple budget to help you stay within your means.
CUT THE CREDIT AND GET CONTROL
One of greatest assets of having a credit card is the ability to purchase big ticket items without having the cash upfront. It’s easy to open a line of credit, but go in with a strong plan of action. Have the mindset of paying off the monthly balance in full. This is easier said than done and the leniency of credit card payments throws many into financial turmoil. Minimum balances accrue and suddenly credit card debt becomes overwhelming. If you find yourself in this predicament take a breath, it’s going to be okay. Cut the credit, literally, take scissors and cut the card (but be careful of closing a line of existing credit as this could damage your credit score). Regain control of your finances one payment at a time. A generous Daddy will be able to help you accomplish this.
KEEP IT SIMPLE
Keeping track of your finances is simple with free financial apps like Mint. Anytime you make a purchase document the transaction on the app. It’s a great habit to get into. This way you are aware of how much you have and how much you spend. Keeping track of your finances isn’t something to be ashamed of, it’s smart.
SAVE. INVEST. SPEND
Save money when you can and have an account designated specifically for savings. If you have the funds and know-how, investing can be a way to grow money. It’s a risky venture and a return on investment is no guarantee.This is where daddies financial guidance can come in, if he’s well – versed in investments learn all you can. Lastly, spend money mindfully. If you’re in a financial predicament it can get better. If you have a burning desire for upward mobility, you can get there. Ultimately it’s up to you to achieve it, but your Sugar Daddy can guide you.