She Strengthens

Smart Spending Rules to Live By

When it comes to managing our finances, we all need a little guidance. That’s why I teamed up with financial expert Allison Eklund to bring you the top 10 spending rules to live by.

Saving First: The Key to Smart Spending

Allison believes that saving should be a priority, and it’s essential to factor it into your budget from the start. She sets aside 10-15% of her income each month, separate from her retirement account, to build a safety net. This habit helps her stay focused on her long-term goals and makes it easier to make smart spending decisions.

10 Rules for Spending Wisely

1. Think Long-Term: Before making a purchase, imagine how it will fit into your life six months or two years from now. This helps eliminate buyer’s remorse and ensures you’re making intentional spending choices.

2. Can You Afford It?: Instead of asking if you deserve something, consider whether you can truly afford it. Look at your projected expenses and prioritize your spending accordingly.

3. Track Your Spending: Keep tabs on your outgoing money using tools like Mint.com to get a clear picture of your finances. This helps identify areas where you can cut back and make adjustments.

4. Take Control of Your Finances: Don’t ignore your financial situation or rely on others to manage it for you. Take ownership and educate yourself to make informed decisions.

5. Credit Card Wisdom: Only use credit cards if you can pay off the balance in full each month. Avoid credit card debt and be cautious of rewards programs with hidden fees.

6. Exceptions to the Rule: Life is unpredictable, and sometimes you need to bend the rules. Allison shares her own experience of using a 0% APR credit card to spread out a large purchase over several months.

7. Learn to Say No: Every “yes” means saying “no” to something else. Practice mindful spending by prioritizing your needs over wants.

8. Invest in Quality: Instead of buying cheap, trendy items, save up for investment pieces that will last longer and provide better value in the long run.

9. Assess Your Habits: Identify areas where you can cut back on unnecessary expenses, such as subscription services. Be mindful of auto-billed payments and cancel anything that’s not serving you.

10. Prioritize Retirement Savings: Make saving for retirement a line item in your budget to ensure you’re setting aside enough for the future. The sooner you start, the easier it is to build a comfortable nest egg.

By following these smart spending rules, you’ll be better equipped to manage your finances, achieve your goals, and build a brighter financial future.