Everyone overindulges once in a while and particularly at this time of year. From the latest Christmas gift sets and holiday deals to all the fun activities you can get involved in like ice skating, winter vacations and even overindulging in holiday specials from the likes of Starbucks, there’s so much to spend money on that often it can be difficult to resist temptation.
Yet, it’s incredibly important to have a long-term savings plan to ensure you can have a good quality of life later down the line, in addition to having something to fall back on when there’s a rainy day. If you’re struggling to build up your long-term savings, this is the right place for you.
Below, we’ll take a look at some top habits you can develop to ensure you keep building your long-term savings for the future.
Is there a way to turn your hobby into a money maker?
Many hobbies cost a lot to maintain as there’s the equipment to buy, the cost of getting to and from the activity, the amenities you may need while out such as lunch and drinks, or even entry costs to a venue. Yet if your hobby involves a certain skill or something you make then perhaps you could turn it into a money maker.
Hobbies like photography, painting, graphic design and much more can all be turned into money makers if you go the right way about it. First research your target market and see if there is a desire out there for your skill or product. After that, the world is your oyster.
Use responsible sites and venues
Deciding where you spend your money on a hobby is an important factor in being efficient with your money. For example, if you are passionate about horse riding, you could do some research into a responsible spending policy to see if there is a different stable that will charge less for riding lessons.
If you are a passionate gamer, it’s important to find a site that has a responsible gaming policy. Such sites enable players to set limits to their spending and activity on the site or the app in order to better control your money without being tempted to keep spending more.
In addition to being concerned about your own cash, you should also consider how the company is using your money. Perhaps you could find a venue that gives back to charity or donates part of their proceedings to an organisation that gives back to the community.
Stick to the rule of thumb
Generally speaking, if you have a responsible saving policy, you should be planning to save 10-20% of your income for your long-term savings. 50% of your income should be spent on essential costs such as your mortgage and bills, and 30% should be leftover as your disposable income. This means 30% of your income is for doing fun things like eating out, going to the cinema, or visiting the aquarium.
If you’re not able to do this then perhaps it’s time to start analysing your spending and figure out what you can sacrifice in order to be able to live more within your means. While it may seem like a chore now, your future self will thank you for the stability of having funds to fall back on.
Check if your hobbies have become unhealthy
Everyone wants to have fun, but sometimes it can be easy to overindulge ourselves a little too much, which if left unchecked, can quickly eat into our long-term savings.
One of the best ways to keep track of this is to write down everything you spend money on. This activity can really open your eyes as to how much you are spending, on what, and whether it is really worth it.
Some of the warning signs of unhealthy spending include:
- Hiding how much you have spent from your spouse
- Taking money out of your retirement savings to fund your hobbies
- Going over the family budget every month
- Suffering with stress and anxiety over your spending
Change your behaviours and influencers
Today’s intense level of commercialisation makes it difficult for any of us to not get carried away with spending sometimes. There’s’ so many adverts on the television, online, in the post, and even personalised ads that track us on social media.
If temptation is simply too much for you, try to limit your exposure to these temptations by changing your settings online so you don’t see so many ads, find ways to get outdoors with nature or ways to pamper yourself at home where it doesn’t cost so much to indulge.
Overall, in today’s digital environment it can be incredibly challenging to show self control and not get carried away with spending. However, by keeping the above top habits in mind, you’ll be sure to master better control over your finances in no time.