Growing up, you must have wondered a lot of times that you would do things differently from the way your mom did. One of those things, in most cases must have been the way your mother handled her personal and household finances. If you are one of those persons whose mother had a problem of overspending, there is a lot you can learn about financial management from your mother, avoiding the things that she used to do quite a lot. Here are ten best lessons you can learn in your life from your mom’s overspending and ensure that you are on a much better financial standing:
1. Have a Budget
The first thing to do is to determine how much you can afford to spend on everything. Before you start paying for groceries and utilities, always make a budget. This will help you determine how much you should spend on groceries, how much to save or how much you need to cut back on your expenses.
2. Make a List for Grocery Shopping
Going to a mall without a clear idea of what to buy can lead to spontaneous overspending since aisles are positioned in a particular way to make that happen. If you want to control these impulsive shopping indulgences while walking down a mall aisle, make sure you have a list of all that you need and stick to it.
3. Learn To Bargain or Let Your Husband Do It
Bargaining or looking up for deals and sales can save you quite a lot of money. Don’t be shy to look for chances of bargaining or sales if they are available. If you don’t like shopping or lack bargaining skills, let your significant other try it. Among the two of you, one must surely be good at such things.
4. Don’t Let Your Debts Accumulate
Make sure that you are not in a habit of spending more than you earn regularly. Having an overdraft on your credit card is acceptable once in a while, if you are paying it back at the right time, but having your debts mount up every month while not paying them back is quite alarming. Consolidated Credit is a company who helps with credit counseling which can be helpful for you in controlling your debt.
5. Save a Certain Amount Each Month
If you can, try to save a certain amount of money every month even if it means a little bit of penny-pinching. Having some savings with you can sometimes be a blessing when you are going through a hard time, especially in the current financial scenario.
6. Keep a Check on Your Shopping
Whether you are shopping for clothes, shoes, gadgets, appliances, books, furniture or any other thing for personal or household use, make sure it is affordable and will not put a dent in your savings. It is not just clothes that cost too much; other seemingly small things can also be equally expensive if not bought carefully.
7. Don’t Overspend on Kids
One of the most common problems with mothers is that they spend too much on their kid; especially if it is their only kid. Kids grow up fast and need new things all too soon, so buying them too much clothes or shoes at one time would not be of much use for a long time.
8. Plan Realistically for Your Retirement
We always think it is too early to think about retirement and when we finally start taking it seriously, it is often too late. From early on in your life, start looking for viable retirement options that offer realistic returns so that you are not financially dependent on anyone in a fragile age.
9. Contribute Towards the Income
Being a woman does not mean you do not have a financial responsibility. In the current financial scenario, the more you share thefinancial burden of your husband, the better it will be for your household. So, even if you get a part time job, try to contribute something towards your household income.
10. Don’t be Afraid to Get Credit Counseling
One of the most common perceptions among people is that getting credit counseling is something bad. If you do have a credit problem, don’t be afraid of it. Talking to a credit counselor can solve a lot of your problems. Consolidated Credit is a company who helps with credit counseling and can help you with your finances.
If you keep your eyes open and follow these few simple steps, you can be in a much better financial condition at the time of your retirement than your mom. If you ever find yourself deviating, remember how many troubles your mother had to go through because of such habits and rein in your spending before it is too late.
CJ is a financial advisor who specializes in retirement planning for people who want to have a financially secure future.