5 ways to align your spending habits and be mindful of your money

 

On any given day, it is fun to spend money and splurge on things you love. It makes you feel better and immediately puts a smile on your face. While it is good to take care of yourself and do what you love, the need of the hour is also to be mindful of your spending. 

So, what is mindful spending, and why do you need to do it? 

Before you spend your money, it has become necessary to be conscious of what you buy and, more importantly, how much money you spend on that. This is mindful spending. This simple aspect of spending can help you be more in control of your spending habits and have a little bit more control over your money and your financialfuture.  You will also need to ensure you align your spending habits with your values to create financial resilience. 

These are a few things you can do: 

Save some and then spend some

There is no rule book that says you need to live like a pauper in the present to live like a king in the future. The idea is to set aside some funds for yourself before you spend them. How can you do this? You can start by creating a budget that gives you a realistic idea about your financial status. List all the sources of your income and the expenditures you incur every month. This will help you set funds aside for your savings and investments. 

You can always create your spending-to-saving ratio to have a little extra cash. Ideally, speak to a financial consultant or planner who can help you do this. A simple process like this can help you manage the big spending and help with savings. 

Align your goals with your finances

One important aspect of mindful spending is knowing what you want to achieve. This would also mean that you will need to create a time frame for fulfilling those goals. This process can allow you to distribute your finances in a systematic manner.

For instance, if you want to create a financial nest for your child, you should consider investing in a savings plan. You can look at a plan like HDFC Life Click 2 Achieve. It provides life insurance coverage and comes with two options to choose from. You also get survival benefits, death benefits, Guaranteed¹ Immediate Income with the freedom to select the duration of your choice according to specific requirements,built-in premium waiver in case of occurrences like death, critical illness, and total permanent disability. The plan also acknowledges and rewards your child’s outstanding achievements. 

Think of your retirement

The retirement era is said to be the golden years in your life. To lead a comfortable life, you will need to start investing in it now. This can be done by choosing a retirement or even a savings plan that can give you a healthy financial corpus and generate a steady flow of income. 

One such plan is HDFC Life Sanchay Plus that provides life cover, provides steady retirement income with its Life Long Options²,maturity and death benefits, along with other benefits. 

Create a healthy financial habit

Following a disciplined approach to finances can help you develop a healthy financial habit. Start by automating all your payments, including your utility bills, investments, and savings. If you have received an annual bonus or a windfall, choose to invest a portion of that money to clear any debt or add to your emergency fund account. 

Follow the ‘Can it wait’ Strategy

It is a fun activity to buy a few things that you don’t need. Doing this once in a few months may not seem like a big deal, but you must be mindful that it does not become a habit. One way to be mindful of your spending and align with your goals is to follow the ‘can it wait’ strategy. If you see something you like, ask yourself this question. If the answer is yes, wait some time to buy it. However, if the answer is no, look for an alternative that can fit your monthly budget. 

Mindful spending isn’t as hard as it may sound. You need to follow a system that will work for you. Also, you do not need to be too hard on yourself when it comes to it. Spend, but wisely. This is what can help you in becoming financially resilient and secure.

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