How to Handle Money Like a Royal! -ROYALs Lessons
Ciao Royals! Welcome to another Royals Lesson. In the spirit of the first month of the New Year, let’s talk goals- specifically monetary ones. Everyone wants to be good with money, right? And what better time to learn about managing money and such than a brand new year with so many monetary opportunities and tests? So today, let’s talk about handling money in the context of being a royal.
Part of the focus of the ROYALs series is about living like royalty, with a few meanings:
1. Royal life- as in living your best life (ROYAL as in Refreshing + Organizing Your Amazing Life).
2. Learning aspects of Royal life such as etiquette, history, and other aristocratic skills
3. Living like royalty without spending like royalty
Today’s post is mostly leaning towards the third meaning. How can we live luxuriously and comfortably while saving money? What are some good financial tips? How do we know when to treat ourselves and when to abstain? We’ll cover most of that today (living luxuriously on a budget is another post).
Let’s go over some tips:
1. You should always have a savings account and savings plan. Everyone needs an emergency fund! Even putting aside as little as $10 a month can make a difference. Do not touch your savings account unless it’s an emergency.
2. Keep track of your spending. If your bank has the option to make an online account to monitor your money, get one, if they have an app, get it. Heck, even get text alerts if you can. Keeping track of your money this way will not only make sure you know how much you can spend and don’t overdraft- but also will protect you in the case of fraud. The sooner you can alert your bank to the “hey, I didn’t make that purchase,” the sooner they can help resolve it.
3. Whenever possible, pay in cash. The mental associations with cash and card are different. Seeing the money (cash) leave your hands is more significant to your brain and will prevent you from spending a lot, because the purchase feels more real, and the sting of losing the money is more tangible.
4. Pay bills first. Buy Groceries first. Do the necessary spending first. Whatever is left after you have paid everything that you have to pay to survive, whatever is left is yours, but pay your necessities first.
Lastly, I’d like to cover a big question- How do we know when we can treat ourselves?
Well, to know when to treat yourself, assess a few factors.
1. Could you buy 2 of this item comfortably? Meaning, do you have enough money to buy two of this item? If not, maybe don’t buy it yet.
2. Does it cost more than a full paycheck? If so, maybe wait two or three paychecks, then you can buy it if you still want it.
3. Is this an impulse? Wait a week. If you still want it, it’s not an impulse buy.
4. Are you getting more money? How soon? If you aren’t getting money for a while, maybe refrain and save your money.
5. Will this bring you lasting happiness? Don’t buy something that will only make you happy for five minutes.
Thanks for reading! There will be more ROYAL posts soon!