What's Holding You Back from Financial Success? It May Not Be What You Think

Posted on June 23, 2019 by Brandy Caulfield, One of Thousands of Money and Finance Coaches on Noomii.

Tip #1: Travel

First off, let me just say that vacations are my guilty pleasure. But in my defense, my husband and I are both from different countries and visiting the in-laws is a necessary delight that we both indulge in.

With that said, I have found that you can take steps to save money when you travel, such as:

travel hacking plane tickets

travel hacking hotel rooms

purchasing rental cars when they have special deals

traveling light so you don’t have to pay for extra luggage

going to countries where the dollar stretches further with the exchange rate

using public transportation instead of renting a car when feasible

not buying souvenirs

shopping at local groceries instead of eating out or eating out at cheap, delicious, local places

bringing the clothes you will need instead of buying new clothes

having a friend or family member drive you to the airport rather than using expensive airport parking

The list goes on and I’m sure you can think of your own clever savings tips, too.

Just remember that going on vacation is usually possible. If you are trying to get out of debt, there are strategies you can implement without burdening yourself with more money stress.

Tip #2: Eating Out

I once read that eating out for the middle class is considered “low-hanging fruit”. After thinking about this for some time, I came to realize that this statement makes a lot of sense. You get off work, feel tired, and don’t feel like cooking.

Solution: go out to eat. It’s just so easy. But it comes with a price. Actually, the price is quite high. Let’s say you go to a mid-range restaurant with your honey. You both order one drink, a main meal, and either a dessert or an appetizer. In our town you would pay approximately the following:

$6 appetizer, $10 main meal x 2, $5 dessert, $6 drink x 2

Total = $43

PLUS tax, PLUS tip!! Yikes. This meal would end up costing close to $55! Now, imagine you go out to eat at least 3 times a week (maybe more). $55 × 3 = $165 × 4 weeks a month = $660 × 12 months a year $7920 for just eating out ‘once in a while’. You can see where I’m going with this. Eating out is so easy, but burns a hole in your pocket if done on a regular basis. Think of how much you could pay down your credit card balances or chuck into your savings if you cut back even 50% on restaurant food. You would accelerate your financial goal and dreams exponentially.

We all like some low-hanging fruit sometimes, which is why it’s important to realize there should be a healthy balance between sometimes, always, and never.

Tip #3: Lack of Planning for Major Life Events

Planning financially for big events in our lives may sound daunting, but you will thank yourself when you have money set aside for a new baby, relocate for work, or move into a new home to name but a few. Not having money saved aside for specific life events (at least ones that we can plan for) is a recipe for financial disaster.

For instance, my husband and I take long trips every summer. We used to just use our last paycheck or two of the academic year to go abroad, but we have since started putting aside a certain amount of cash every paycheck toward our trips. By doing this, we are able to pay for plane tickets, hotels, car rental, etc. in advance without worrying about everything at once. It’s a great feeling knowing that we have our finances planned in advance specifically for the purpose of vacation instead of juggling our money at the last-minute between travel and bills.

One source of financial stress stems from lack of future money planning.

Tip #4: Giving into ‘Wants’

Rent, the utility bills, and your school loan payment(s?) are due at the beginning of the month, but you just have to have those oh-so-very-expensive designer boots in the window of that fancy shop. Guess some of those bills will have to wait, right? Giving in to those kinds of ‘wants’ when you have more important things to pay off compounds your stress around your money. The issue isn’t about will power but about discovering your triggers. Once you do, you will be in a better position to rationalize what is a healthier move for you financially.

Tip #5: Giving instead of…(paying off debt, saving, etc.)

I recently listened to a very well-educated woman explain to me how much she gives to those in need. This would normally be all well and good except for the fact that this same person also complains about how much debt she and her husband have. This poses a problem.

Giving is an exceptional way to make good with your money. Helping others improve their lives makes for a happier community. What isn’t so great is giving money you don’t have. How can you give money to charities when you yourself carry heavy debt?

In this case, the money you take home in your paycheck doesn’t really belong to you because you owe it to someone else. Not to mention that by giving money to others when you have debt, prolongs your loans and forces you to pay even more in interest.

So, why not wait until you transition into a more comfortable financial position instead? By the time you get there, you should already have an established budget and since the loans are paid off, there will be a slot to fill so to speak. You can easily add a ‘giving’ category to your budget. I don’t believe it is selfish to tend to your own needs first when you are financially stressed. Focus on yourself first so you can, in turn, help others in a much bigger and more satisfying way.

To your financial success!

Brandy

Learn more at Money Bear.