This month’s guest blog comes from our friend Terri Watson, founder of The Healthy Wallet Project. Terri has a mission to help Australian families get out of debt. This month she’s shared with us some tips to change your spending habits.

Has your debt got the better of you? Do you have a savings goal but not matter how hard you try it seems like it is not going to happen?

Creating a budget is the perfect solution to taking charge of your debt and reaching your financial goals. Budgeting seems easy enough right? Know what is coming in and what is going out and find out what is left over to pay off debts or save!

What if there is no money left over? What if your budget is in the red? Then what do you do!

You need to look further than numbers on a page, you need to look at your spending behaviour, then you need to alter it so you start having more money to pay off debt and save for a financial goal.

So first you need to find where your money is going, then you need to work out what is a need and what is a want.

Changing your spending behavior isn’t easy BUT it can be done.

Once you know where your money is going and what you need you now need to understand your spending behaviour, here is how:

Know your Triggers – determine what causes you to behave in a way that makes you want to buy unnecessary items then avoid those triggers. If you can’t build barriers or hurdles that you have to face if you want to spend.

Find ways to reduce stress – Bad habits or unwanted behaviours are usually coping mechanisms. You will benefit by finding alternative ways to blow off steam (exercise, yoga, mindfulness, meditation, gratitude, sleep and social interaction)

Pay Attention – When you stop paying attention because your distracted or stressed your brain reverts back to old patterns.

Start small – Changing your behaviour required willpower. Willpower is a lot like a muscle it gets tired and depleted. Start out making small changes that doesn’t require much willpower. Like muscle training exercise your willpower muscle start off small and add more weights the stronger you will get.

And lastly surround yourself with the right people – It is easier to change a behaviour when you are surrounded by people who encourage you and they also want to change.

Would you like to finally start achieving those financial goals? Terri Watson is a Healthy Money Mindset Mentor and a mother of 3 who has experienced financial stress and is now passionate about helping others become financially fearless. She is the founder of The Healthy Wallet Project and is a Financial Coach for Humblebee Financial Planning.

For more info: www.thehealthywalletproject.com.au