3 Effective Tips for Improving Financial Discipline

3 Effective Tips for Improving Financial Discipline

Before you can reach your lifestyle goals, you need to master the basics. One of those basics is the practice of financial discipline.

Let’s face it – being financially-disciplined is easier said than done for a lot of us. While we typically have good intentions with how we spend and/or save our money, it’s quite common for people to hit road blocks from time to time. Improving financial discipline can – at times – feel next to impossible.

However, If you put your mind to it and make a solid plan, it doesn’t have to be hard to make a few important changes. Here are a few tips to help get you on the path towards financial responsibility.

Piggy Bank Money

Know What You’re Up Against

One of the major reasons why people find it hard to climb out of a financial hole (or avoid ending up in one) is because they simply don’t take the time to understand what they’re up against. Financial discipline is all about knowing every aspect of your situation and dealing with things methodically. If you owe a variety of different lenders, for example, you’ll want to set priorities and determine how much to pay who and how often. Those who find themselves or a loved one in legal trouble may want to learn the definition of bail and determine what they might be in store for cost-wise.

Knowledge is important, and you need to honestly evaluate where you stand before you proceed.

Use Budgeting Software

Technology has made handling one’s finances quite a bit easier and more streamlined than ever in the past. Budgeting software is not only inexpensive (there are many programs available free of charge), but it can have an immense impact on how well you’re able to stay disciplined about handling your finances. Because this software often requires you to manually enter transactions, you’ll be forced to pay close attention to exactly what you’re spending your money on. You can categorize your purchases and set limits, which is a great way to ensure that you don’t go overboard at any point throughout a given month. For those who have problems managing their money, there is really no better solution than a solid piece of budgeting software.

Don’t Neglect Your Savings

It’s difficult enough these days for many people to even pay their bills, let alone build upon a savings account. The importance of having a savings cannot be refuted, though, and those who are aiming to improve their financial discipline should start by setting up a proper savings account and contributing to it regularly. Every dollar you bring in has a job, and while some of your money should be delegated to bills and household expenses, the rest should not be used for leisure – it should be saved.

If you’re disciplined in how regularly and often you contribute to your savings account, you’ll be able to rest easy knowing that you have a financial padding in the scenario that you might actually have to use it. Once you have a savings under your belt, you’re already doing better than many Americans in regards to financial discipline.

Staying on top of your finances may be hard at first, but it’s worth the effort — and over time financial discipline becomes easier.

Written by Miranda Marquit

Miranda Marquit is a freelance writer and professional blogger, specializing in personal finance, small business, and investing topics. She writes for a number of financial web sites and blogs, and has been featured in numerous media. Read about life as a freelancer at MirandaMarquit.com and in her book Confessions of a Professional Blogger.

One Response to 3 Effective Tips for Improving Financial Discipline

  1. I think you’re right that it takes commitment to build up financial savings. Depending on what you’re planning to do, it might even help to get the help from an expert. Software is can be helpful, but I imagine there’s something more motivating when you’re working with an actual person.

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