Four 10-minute actions that will help you manage your money more wisely
Published: 13.10.2016
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Whether you are trying to save money for your next trip or want to stabilise your financial situation so that you can finally start living independently, such plans often seem unrealistic because financial tasks such as creating a budget and opening a savings account seem difficult and time-consuming. However, if you do not want payday loans online to be and remain your solution whenever you need additional funds, take a look at these four actions that will help you manage your finances more wisely and will take only 10 minutes or even less.
1. Take a breath before buying something
Several different studies have shown that the temporary pleasure and satisfaction of our desires that we gain from shopping is usually much greater than the genuine satisfaction we get from purchasing something, especially when we buy it suddenly and without planning. Don’t believe it? Consider how much satisfaction your latest impulse purchase gives you, or how often you actually wear that item of clothing you recently bought simply because you suddenly liked it. Therefore, the next time you want to make an impulse purchase, take a deep breath and think about whether you really need it. Or, even better, leave the shop and go for a walk, have a snack, or try to improve your mood in some other way, because an impulse purchase usually will not do that either and may later cause even more stress because you will have spent more money than you had planned.
2. Start building your emergency savings
Emergency savings, or what is known as an emergency fund, is something you have certainly heard about several times, because everyone should have savings of this kind. But if you have not yet set up a savings account intended for situations when you suddenly need additional funds, do it now. Nowadays, with the help of online banking, it is as simple as clicking the “Open a savings account” button, while going to the bank and opening one there will not take you too long either, but it will create a sense of financial security and stability because you will know that you have these additional savings.
3. Know which ATMs you can use to withdraw money without an additional fee
Although the fee charged when you withdraw money from an ATM that is, so to speak, not friendly to your credit or debit card is not very large, if you regularly obtain cash this way, these fees can quickly add up to fairly substantial additional expenses. Therefore, find out which banks’ ATMs are “friendly” to your bank card and will not charge an additional fee when you withdraw money. This will not take much time, as such information is usually available on your bank’s website, but at the same time it will help you save more money, which you can then put towards building your savings or use for everyday purchases.
4. Set up an alert for exceeding your credit limit
Whether you use a credit card or a line of credit is how you make sure you never run out of money, always set up an alert for exceeding your overdraft or bank credit limit. This action will not take much time, as all you need to do is log in to the bank account linked to your credit card or line of credit and enable notifications that will alert you whenever your spending reaches a specific amount. Although these notifications, most often sent by SMS, are a paid service at most Latvian banks, they are still worthwhile because they will warn you when your spending threatens to put you into debt and will certainly make you think about your spending habits as well, especially if these notifications start arriving soon after you receive your salary.
1. Take a breath before buying something
Several different studies have shown that the temporary pleasure and satisfaction of our desires that we gain from shopping is usually much greater than the genuine satisfaction we get from purchasing something, especially when we buy it suddenly and without planning. Don’t believe it? Consider how much satisfaction your latest impulse purchase gives you, or how often you actually wear that item of clothing you recently bought simply because you suddenly liked it. Therefore, the next time you want to make an impulse purchase, take a deep breath and think about whether you really need it. Or, even better, leave the shop and go for a walk, have a snack, or try to improve your mood in some other way, because an impulse purchase usually will not do that either and may later cause even more stress because you will have spent more money than you had planned.
2. Start building your emergency savings
Emergency savings, or what is known as an emergency fund, is something you have certainly heard about several times, because everyone should have savings of this kind. But if you have not yet set up a savings account intended for situations when you suddenly need additional funds, do it now. Nowadays, with the help of online banking, it is as simple as clicking the “Open a savings account” button, while going to the bank and opening one there will not take you too long either, but it will create a sense of financial security and stability because you will know that you have these additional savings.
3. Know which ATMs you can use to withdraw money without an additional fee
Although the fee charged when you withdraw money from an ATM that is, so to speak, not friendly to your credit or debit card is not very large, if you regularly obtain cash this way, these fees can quickly add up to fairly substantial additional expenses. Therefore, find out which banks’ ATMs are “friendly” to your bank card and will not charge an additional fee when you withdraw money. This will not take much time, as such information is usually available on your bank’s website, but at the same time it will help you save more money, which you can then put towards building your savings or use for everyday purchases.
4. Set up an alert for exceeding your credit limit
Whether you use a credit card or a line of credit is how you make sure you never run out of money, always set up an alert for exceeding your overdraft or bank credit limit. This action will not take much time, as all you need to do is log in to the bank account linked to your credit card or line of credit and enable notifications that will alert you whenever your spending reaches a specific amount. Although these notifications, most often sent by SMS, are a paid service at most Latvian banks, they are still worthwhile because they will warn you when your spending threatens to put you into debt and will certainly make you think about your spending habits as well, especially if these notifications start arriving soon after you receive your salary.
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Economics;
