Being money conscious simply means being aware of your money. That is being aware of how much you have, how much you earn, and what you do with every single penny.
Being money conscious means you won’t have to ask yourself, “what the heck did I do with my money? What did I buy? Why do I have only this amount left? Why am I in debt now?”
Being money conscious means you know exactly what happens with your money. Many people go through life without being money conscious. And this has some negative impact on their lives and their finances.
This is because if you are not aware of how much you are making and how much you are spending, you can’t make the right decisions when it comes to managing money and you will always find yourself broke or worse, in debt.
Most people think that they are not even earning that much to be conscious of their money. They think they don’t have that much money so why concentrate on that.
But being conscious of money is not about how much money you have or how much money you can make. It is about learning how to deal with and manage money. So whether you make a lot or you don’t, it is important to be money conscious.
You have to be content with what you have just now instead of focusing on what you don’t have. You might not be rich just now, but always thinking about the money you don’t have actually holds you back from getting more of it. Focus on what you do have and you’ll receive more of what you truly want.
Most people believe that money measures how successful they are. But managing money is also an important factor in being successful. Becoming more money conscious is one way to prevent overspending and work your ways out of debts.
Money consciousness means being aware of your financial habits and their implications. If you want more money, then it is important that you improve your money consciousness.
So in this article, we will discuss some important things to do in order to be money conscious.
How to be money conscious
Plan what to with your money
It’s important to always plan and know what exactly you want and need to do with your money. The most common reason for overspending is because you do not really know what you need at the right time.
This means that should take a good look at your wants and needs. Make a list of your needs, so that you can put the important needs on top of the list in relation to your satisfaction.
You must plan as many of your purchases as possible. Planning ahead will make a massive difference to how and on what you spend your money on.
Create a savings account
We all know the benefits of saving for the future. Build your savings level by reading books, going to seminars, watching online training on how to save your money, and how to invest as well.
You have to build your conscious level so that you can use portion of your money to invest into your business. Creating a savings account will help you to save more money rather than spending them.
Having money saved in your account means, you have something to use in case of any form of emergency. With money in your savings account, you won’t have to take a loan if there is something you didn’t plan for happens.
This can be a medical emergency, a faulty appliance or even water causing damage to your home. Once you have some money saved, that means that in case of anything you didn’t plan for, yow will be fine.
Set a budget
Taking a look at your income and expenses should be done on monthly basis. It is important to know how much you spend on food, clothes, utility bills and other expenses.
So you have to create a budget. Make the budget based on your income and your expenditure and also make sure you add savings to the budget.
So at the end of the month, once you receive your salary, you know how much you are saving, how much you are spending on food and how much you are spending on clothes and everything else.
Track your spending
If you want to budget right, then it is important to track your expenses. If you track your expenses, you will know where your financial level is headed.
When you’re able to track your spending, it helps you to make smart purchases and also helps you to make smart decisions. You will be able to identify the areas you overspend and so you know where to cut back.
The power is in your hands. You’re the one with the money and you can decide whether you’re going to spend everything or save it instead. If you track your expenses on a regular basis, it will soon become a habit.
Borrow when needed
There’s nothing wrong with needing financial help to pay your bills during a tough time or if an emergency occurs to you. Human wants are endless and this makes us spend our money without even realizing it.
Also, life is full of unpredictable events and even with a savings account, you can still run into an event where you will need some additional money. So borrow but only when it is needed. When it is important that you do. Don’t make borrowing a habit, especially if it is for something you can do without.
SEE ALSO: TIPS FOR BEGINNING TO SAVE EFFECTIVELY 5 HABITS TO ADOPT IF YOU WANT TO BE RICH 8 REASONS WHY YOU NEED A BUDGET