Be decisive

Decisiveness is a key quality for any business leader. When you're in charge, you can't afford to second-guess yourself or dither over every decision. Of course, that doesn't mean that you should make rash decisions without considering the consequences. But it does mean that you need to be able to trust your instincts and make quick decisions when necessary.

A good example of decisiveness in action is when former General Electric CEO Jack Welch was faced with the decision to downsize his company during a difficult economic period. Welch didn't hesitate to make the tough call, and it paid off in the long run. Also, when you're decisive, people are more likely to trust and respect you as a leader.

Get a master of business administration

If you want to be a great business leader, it's a good idea to get a master of business administration. An MBA will give you the theoretical knowledge and practical skills that you need to be successful in business. In addition, an MBA from a top school will open doors for you and help you network with other successful leaders. Also, many of these programs offer concentrations in areas like leadership, which can be beneficial.

Moreover, when you have an MBA, people are more likely to take you seriously as a business leader. This means that you'll have more credibility and authority in the business world. Also, an MBA can help you advance your career and earn more money. So if you're serious about becoming a great business leader, getting a degree is a smart move.

Be a better communicator

As a business leader, it's essential that you're able to communicate effectively with your team. After all, how can you expect to get your point across if you're not articulate? When communicating with your employees, make sure that you're clear and concise. Be respectful, but don't be afraid to give constructive criticism when it's warranted.

It's also important to remember that effective communication is a two-way street. In other words, you should also make an effort to listen to your employees and get their feedback. After all, they're the ones doing the work, so they probably have some good ideas about how things could be improved. By making an effort to communicate effectively, you'll build trust and respect with your team.

Become more self-aware

Self-awareness is another important quality for any business leader. If you're not aware of your own strengths and weaknesses, it's difficult to make the right decisions and lead your business effectively. To become more self-aware, take some time to reflect on your successes and failures. Also, try to get feedback from others, including your employees.

You should also be aware of the impact that you have on others. This means being able to read other people's emotions and understanding how your words and actions affect them. If you're not sure about something, don't be afraid to ask for advice from someone who's more experienced. The more self-aware you are, the better leader you'll be.

Set clear goals for your employees

As a business leader, it's important to set clear goals for your employees. This way, they'll know what's expected of them and they can be held accountable if they don't meet your expectations. When setting goals, make sure that they're specific, measurable, achievable, relevant, and time-bound. Also, involve your employees in the goal-setting process so that they have a sense of ownership.

In addition, it's important to keep your employees motivated. This means providing them with the resources and support that they need to be successful. Also, make sure that you give them regular feedback so that they know how they're doing. By setting clear goals and keeping your employees motivated, you'll be more likely to achieve success as a business leader.

Be flexible

As a business leader, it's important to be flexible. This means being open to change and willing to adapt to new situations. For example, if your company is facing a difficult situation, you might need to make some changes in order to stay afloat. Also, if you're launching a new product or service, you'll need to be flexible in order to make it a success. To be a successful leader, you need to be able to roll with the punches and adapt to change.

Flexibility also means being open to different points of view. Just because you have a certain opinion doesn't mean that it's the only valid perspective. It's important to listen to others and consider their opinions before making a decision. By being flexible, you'll be able to make better decisions and find creative solutions to problems.

Lead by example

Finally, it's important to lead by example. If you want your employees to be honest, hardworking, and respectful, you need to set the tone for yourself. Also, if you want your team to be successful, you need to show them what it takes to achieve success. By leading by example, you'll earn the respect of your employees and set the stage for a successful business.

If you want to become a better business leader, there's no magic formula. However, by following these tips, you can improve your chances of success. Remember, being a successful leader takes time, effort, and practice. So, don't get discouraged if you don't see results immediately. Just keep working at it and you'll eventually become the leader that you want to be.

There you have it! Becoming a better business leader requires self-awareness, clear goal-setting, flexibility, and leading by example. If you can work on these four areas, you'll be well on your way to success. Just remember the importance of taking things slowly and consistently practising your leadership skills. With time and effort, you can become the leader that you want to be.

[ymal]

As merchant bankers focused on Financial Services and impact investing, Middlemarch Partners believes that ESG-focused FinTechs have a unique ability to achieve rapid growth, deliver ESG-focused innovation, and attract investment capital to support their efforts to improve the environment and society while generating substantial returns.

We believe that major financial institutions in their effort to adopt these ESG tenants will be compelled either to partner with these sustainable FinTech firms or to invest/acquire them to gain an upper hand with their industry peers.

VC interest in ESG-related FinTechs has surged in the last twenty-four months. MasterCard issued a report which stated that venture funds deployed approximately 2.5 times more equity into ESG-related FinTechs in 2020 relative to what they invested in 2019 (from ~$0.7B to ~$1.8B). Middlemarch believes this trend will continue as earlier stage ESG FinTechs mature (and need growth equity) and more innovative FinTechs enter the market to address unmet ESG needs in the financial services industry. 

Rise of Climate FinTechs

Climate action – addressing the damage done to the environment by human activities-- is perhaps the most talked about and researched topic among all the Sustainable Development Goals promoted by the United Nations and embraced by ESG investors and thought leaders. There is no surprise then, that Climate Tech was one of the fastest sub-sectors to emerge within FinTech. While there are many interesting segments in this space, we focus on banking and lending as well as payments, investing, trading and risk analysis. For each segment, we present unique companies that are building innovative products to tackle climate change through financial innovation.

Banking

Over the last few years, some of the largest and most influential banks globally have committed to reducing emissions attributable to their operations. They have also pledged to reshape their lending and investment portfolios to produce a net-zero carbon footprint by 2050. Although it remains to be seen how much this ‘Net Zero Banking Alliance’ can actually achieve among the largest banks, Middlemarch believes next-generation FinTechs are winning the battle for ESG-focused consumers who choose their banking providers based on the strength of their ESG-related banking products and their ability to address climate-related objectives.

One traditional financial institution that is taking action to advance ESG goals in a material way is Amalgamated Bank, a US-based regional bank. It is a great example of a traditional bank focused on sustainability. A net-zero bank powered by 100% renewable energy, Amalgamated Bank believes in supporting sustainable organisations, progressive causes, and social justice. It does not lend to fossil fuel companies, and 24% of its loan portfolio is dedicated to climate protection loans and PACE financing (e.g., financing for energy efficiency upgrades, water conservation upgrades). Amalgamated Bank has made tangible progress in aligning its long-term business to achieving Paris Climate Agreement targets. Amalgamated Bank offers a strong business case for how a bank can deliver against socially responsible investment objectives.

A compelling example of a FinTech using ESG to market as well as to address environmental issues is Aspiration Bank, a US-based, online-only FinTech that offers a ‘Spend & Save’ cash management account (CMA) where the deposits are not used to fund any oil and gas projects. It also offers a zero-carbon footprint credit card which claims to plant a tree every time a purchase is made from the card. The bank is set to go public in a $2.3B SPAC transaction later this year. With celebrity investors like Leonardo DiCaprio, Orlando Bloom, Robert Downey Jr. and Drake, a multi-million sponsorship deal with Los Angeles Clippers and a multi-billion SPAC in process, Aspiration Bank sets the tone for high-profile, ESG-linked FinTechs to disrupt the banking industry by attracting a younger and more environmentally oriented consumer demographic.

Similarly, Ando, a US-based, online banking platform, invests customers’ deposits exclusively in green initiatives like renewable energy and responsible agriculture. By allocating more than $12M of its customers’ money to green loans since launch, Ando has empowered its users to make a meaningful impact with their savings. Launched in Jan 2021, the company announced a $6M seed round in October 2021, with over 30,000 customers.

Lending

The financial services sector that has most embraced ESG-related efforts is Debt Financing. There have been many green bonds and sustainability-linked loans issued. In addition to these bonds and loans that are promoted by large financial institutions, specialised FinTech lending companies are emerging that focus on sustainability and have developed dedicated lending platforms and products to address the ESG objectives of their consumer clients.

Both Goodleap and Mosaic Inc. are excellent examples of lending platforms focused on financing sustainable home improvements. Goodleap, America’s top point-of-sale platform for sustainable home solutions, offers home upgrades with flexible payment options. With more than $9B in loans deployed through its platform, the company is valued at $12B post its recent $800M capital raise. Mosaic is a leading financing platform for US residential solar and energy-efficient home improvement projects. The company surpassed $5B in loans through its platform in July 2021 as well as closed its 10^th solar securitisation — more than any other solar loan issuer in this space. Both these platforms offer simple financing solutions for their customers and are poised to capture a critical component of the sustainable lending market in the years to come.

Carbon Zero, a US-based credit card issuer, offers a simple way for customers to offset their carbon impact. The credit card fee collected by the company is invested in industry-leading forestry and carbon capture projects instead of environmentally harmful ones. Users can automatically neutralize their carbon footprint and achieve a Carbon Zero lifestyle. Incumbent credit card provider Visa recently announced a similar card program called FutureCard which offers 5% cashback on green spending to reward consumers who demonstrate ESG-supportive purchase behaviour.

Payments

Climate FinTechs in the payments segment focus on influencing the spending and shopping behaviour of consumers to help influence them towards embracing brands, companies, and practices that both are more sustainable and help reduce their consumer carbon footprints. And while all these offerings advance ESG objectives, they also help Climate FinTechs attract a key demographic segment and sustain their transaction revenue by aligning financial transactions with ESG goals.

Ecountabl is a US-based, purpose-driven tech company that helps consumers shop and spend on brands and companies that align with their social and environmental goals. Ecountabl seeks to make consumers more aware of their spending tendencies. Users can connect their credit card or bank account to Ecountabl so that it can monitor the ESG impact of their purchases. Ecountabl achieves this by maintaining one of the largest databases in the world monitoring the level of ESG adoption for brands and employers. The company is venture-backed with funding from CRCM Ventures.

Meniga, a UK-based company, focuses on addressing the issue of carbon emissions produced by consumer spending patterns.  It offers a carbon insight platform that banks can use to inform their customers about their carbon footprint based on their spending. The platform also helps offset this emission by inviting customers to take challenges, adopting green products, participating in the bank’s CSR initiatives, or finding other ways to offset their carbon footprint. Meniga drives insights from the Meniga Carbon Index to provide accurate estimations using transaction data.

Alipay, the mobile payment app by Ant Group of China, launched an initiative called Ant Forest which encourages users to make decisions that lower their carbon footprint through the spending behaviour using the Alipay app. The resulting reduction in carbon emissions are recorded, and users are rewarded with “green energy” points which can be used to plant actual trees that users can monitors using satellite imagery. Ant Forest has helped over 600 million users plant more than 326 million trees since it launched in 2016.

All three of the examples above focus on influencing the customer to make better energy consumption choices, rather than help them offset their emission by investing in environmentally friendly projects. By putting the customer in charge of their emission behaviour, these companies help consumers focus on their own contributions to advancing ESG goals.  It appears that these firms are intent on changing behaviour and are leaving the carbon trading investment opportunity for more institutional investors who are likely to be more effective participants in that market.

Investing

Asset Management and Wealth Management are key focus areas for ESG-focused FinTechs. These companies help individual investors generate a more ESG-compliant portfolio by either offering a specialised marketplace to access ESG-friendly investments or by managing consumers’ portfolios with a focus on composing an aggregate portfolio that achieves measurable ESG goals.

Raise Green is one of the first green crowd investing portals in the US that offers investors a marketplace for local impact investing. The portal helps investors get fractional ownership in clean energy and climate solution projects. The firm is focused on appealing to the younger demographic segment which favours impact investing. The firm completed an angel round of equity financing in April 2021.

There are numerous FinTech portfolio management providers like Arnie Impact and Carbon Collective that offer personalised or pre-built portfolios which focus on sustainable investments and are aligned to the personal values and financial goals of the ESG-focused individual investor. Arnie recently completed its early-stage venture round in September 2021 while Carbon Collective completed one in January 2021. Both companies offer a new option for retail investors to build a long-term sustainable portfolio. 

Trading

Trading is a sector where FinTechs can leverage blockchain technology to lower costs, reduce intermediary involvement and at the same time establish exchanges and marketplaces that enable the trading of carbon credits to advance environmental goals while monetising that effort.

Aircarbon, a Singapore-based, global carbon exchange platform built on blockchain technology, bundles carbon credits from different projects into a single instrument that can be traded on its digital platform. Unlike the current system of carbon credits trading, where companies purchase credits linked to individual projects, Aircarbon aims to create and offer standardised carbon credits instruments via bundling of projects. This approach could enable a more standardised carbon credit economy which could catalyse large-scale, institutional commodity trading.

Climate Impact X is another Singapore-based global carbon exchange and marketplace for carbon credits jointly established by DBS Bank, Singapore Exchange Limited (SGX), Standard Chartered Bank, and Temasek. It supports trading of carbon credits created from projects involved in the protection and restoration of natural ecosystems. The company recently completed an auction of a portfolio of 170,000 carbon credits connected to eight recognised forest conservation and restoration projects located in Africa, Asia, and Central- and South America. The company aims to have such auctions on a regular basis starting in 2022. The development of an expanded carbon credit supply via auctions could help the carbon offset market reach $100B in tradable carbon by 2030.

Risk Analysis

Risk analysis is a Climate FinTech category that has seen the highest rate of exits and mergers & acquisitions based on a report issued by New Energy Nexus. Risk analysis companies focus on measuring two kinds of climate risk data: 1) transition risk, which relates to the process of transitioning to a lower-carbon economy and 2) physical climate risk, which focuses on the physical impact of climate change. Both of these risks are important to investors, and investors rely on these analytical solutions to guide their investment decisions.

Carbon Delta, a Swiss company, provides insights that evaluate climate change risk in public companies for investment professionals. A key example of a company that measures this transition risk - Carbon Delta calculates ‘Climate-value-at-Risk” which provides forward-looking and return-based valuation assessments for an investment portfolio. By offering a calculation of the value of the future costs related to climate change, the company can help influence how investors and operators can direct capital to less environmentally harmful projects. This company was acquired by MSCI in 2019.

Jupiter Intel, on the other hand, measures the physical risk of climate change at the asset level by using satellite data, artificial intelligence, machine learning and Internet-of-Things connectivity. The Climate Score provided by its platform enables users to project the effect of climate change on a portfolio of assets. Banks, asset management firms, and other financial services companies can leverage this data to manage risk and allocate capital to assets that maximise positive climate impact. The company raised $54M in Series C venture funding in a deal led by MPower Partners Fund and Clearvision Ventures in September 2021.

Middlemarch is Poised to Support ESG-focused FinTechs

Middlemarch Partners believe that FinTechs as well as traditional financial services players can use ESG to attract customers who care about changing how we interact with our environment and each other. Not only is Middlemarch Partners focused on helping capitalise on next-gen financial services companies that want to focus on environmental objectives, but we also want to help established traditional financial services companies find ways to reorient themselves towards ESG efforts.

Middlemarch Partners is also cultivating investors who want to help lead the charge in ESG-oriented financial services companies.  We know those investors are looking for those businesses that can deliver strong returns and, at the same time, advance ESG objectives. That is the winning strategy that will allow us all to do well by doing good.

That may be true, but the rest of the 99.99% of things are quite heavy on the bank account. Between bills, school, food, children, girlfriends, wives, entertainment, and subscriptions, how can anyone keep accurate track of their money? Personal finance is the collective term used for managing your money at home. It encompasses everything from diapers to government bonds. Here are steps one must take to ensure that every cent is accounted for.

Seek Advice

Seeking advice is an invaluable tool for any person that wants to keep their personal financial plan on the straight and narrow. Find an expert you can extract information from and mold your strategies around these insights. If you don’t have access to a professional financial planner, MoneyTaskForce.com is a great tool to keep you up to date on trends and news. Big-time search engines also have their financial sections you can look at. The idea is to get a strong feel of how successful people work with their money.

Set Goals

Every person needs goals. A person without goals is probably not going anywhere. Same goes with money. Money is a means--a proof of value. What you do with it determines your wealth. Having a financial plan is crucial to this. Figure out what your goals are. Do you want that new motorcycle? Do you want to save enough to pay for your child’s college? Do you want to take copy-cat selfies in Bali with friends? None of these things can be responsibly done on a whim. Determine a series of goals and attach timelines to them. Have a short, medium, and long term goal. Short is within the year. Short is that vacation mentioned earlier and whatever other purchases you may take on. Medium has a range of five to ten years. Medium is that motorcycle and your eye on that nice apartment in the city. Long term is looking towards the horizon towards retirement. Having a solid plan to stay afloat during your unemployed golden years is always a good idea.

Set Up A Budget

Your primary tool to accomplish what you want financially is the budget. Your budget is a set guideline as to how much you’re allowing yourself to spend within a given time frame. It can be simple or it can be complicated. Like most things, the answer is somewhere in the middle. The Goldilocks quotient of any good budget means that you’ll be aware and somewhat challenged by the boundaries, yet not completely restricted. Ease of use still plays a factor in a financial plan. It’s not all about spending as little as possible. It’s about understanding your habits, curtailing the unnecessary ones, and rewarding the good ones.

[ymal]

Create Safety Nets For When You Splurge

The tendency for anyone under an extremely strict budget is to accrue a feeling of entitlement. “I’ve been so good with my money, I deserve a night out.” This is dangerous. Anything you feel like you “deserve” is absolutely undeserved in the world of personal finance. That attitude primes you to go overboard and splurge way too much. Set up systems that ensure that you don’t go completely off the rails. A very common and highly effective way to do this is to squirrel away money without you even knowing. Have a relatively small percentage of your paycheck go to a savings account in a bank separate from where you have your checking account. Lose the account number. Lose the pin number. Lose everything pertaining to said account and just forget about it. This means you won’t feel the hit of this savings strategy, and you’ll have something to fall back on in case overdraft fees are in your immediate future. Make it as inconvenient as possible. That means that the only way to access that money is to physically go to a branch, wait in line, and retrieve it in person.

Pay Off Debt

Pay off your debt. It doesn’t matter how much money you have in your pocket, if you’re in debt, someone else owns that cash. Make an effort to pay off all your debt within a certain time frame. Let's say in your early years you took on a lot of debt to get life going the way you wanted it to. Pay extra on all of them, focussing on the ones with higher interest rates. Once the high-interest rate loans are paid off, pay that same amount total, but towards the other loans. For example, if you have three loans that each cost you $100 a month, pay that same $300 total towards the remaining two when one of them is paid off. This ensures that you pay off your debt as quickly as possible. It’s called the debt-paydown snowball effect.

Invest

Lastly, invest. Start investing and getting good at it as soon as you can. You have tons of options ranging from bonds to stocks, to real estate. The sooner you get into the investing game, the more you’ll focus on your long term goals and retirement. It’s never too early to start, but due to the nature of these plans, there is such a  thing as too late. You just have to choose the right one and tailor your plans around it. But be careful. There if you delve in stocks and bonds, there is a gambling aspect that is sewn into the system itself. Your goal is to buy low and sell high, of loan out big to get an even bigger return. Due to the fluctuations in the market, this may not work in your favor. But if you do it right, you’re looking at a lifelong habit of making significant passive income.

Gone are the days where things were primarily cash or check. It’s all card and recurring payments. It’s absolutely necessary for one to be on top of their money. Being financially responsible means the difference between knowing when you’re in the red and somehow finding yourself deep in it. Financial responsibility is the key to getting ahead of the game and making sure that you can live a good, happy, worry-free life for years to come. That is the essence of good personal finance.

Below Finance Monthly hears from Jeannie Boyle, Director & Chartered Financial Planner at EQ Investors, who provides 5 top financial planning tips to help you on the right path to a financially sound 2019.

1. Set goals for the life you actually want

Work out what you want from life and make your money work towards that, rather than vice versa. Your priorities will naturally change over time, so taking the time to differentiate your short, medium and long term goals will help keep you focused and on track through the inevitable bumps in the road.

2. Make the most of your tax-free allowances

With tax allowances, it’s a case of use them or lose them. Ensure you and your partner are using all available allowances; personal, savings and dividends. If you haven’t taken advantage of this year’s Isa, junior Isa, lifetime Isa or annual pension allowance, the 5 April is your last opportunity to do so in the 2018-19 tax year.

3. Get pension savvy

An increasing number of individuals will be affected by taper annual allowance as carry forward is used. For those with taxable incomes of over £100,000 per ann

m, it’s worth having a review to check employer and employee contributions remain appropriate. From April, the pensions ‘automatic enrolment’ regime will see the minimum amount paid in rise from 5% to 8%.

The Lifetime Allowance increases with CPI inflation from £1,030,000 to £1,055,000. Also make sure that your expressions of wish for pensions are regularly updated.

4. Build a picture of your current and future finances

Financial planning is all about anticipating the consequences of different choices and situations. By looking at your income, outgoings, savings and other assets, you can crunch the numbers to create a long-term projection of your finances. Identifying trends (positive or negative) can help to give you the best chance of achieving your goals and have a huge impact on how in control of your finances you are.

We’ve designed our free online health check to help you measure your financial fitness, and to see what your finances might look like in the future.

5. Peace of mind

One person in the UK develops dementia every three minutes, so stay in control and plan ahead by setting up a Lasting Power of Attorney (LPA) and allow powers for discretionary management. Every adult with assets should look at getting an LPA, otherwise your loved ones will need to apply through court. And don’t keep putting off getting or updating a will.

Saving and investing money are two completely different things. They each have a different purpose and play different roles in your life. You should make sure that you are clear on the concept before deciding which step to take on your financial journey to avoid stress and help towards meeting your financial goals.

It may seem like a simple question, but wondering whether you should save or invest will completely depend on your financial situation and what you want in life. So perhaps the best way to start is to work out the difference between saving and investing for, defining both concepts.

Saving

Saving involves you putting money into an account and adding to it regularly. Your capital will not be at risk and you have the chance to grow your money by earning interest on it. But there is a risk that the rate of interest paid on your money may not be higher than the rate of inflation and your money may not increase in value.

Savings are great to have as they are always available to access and can be used for many things such as emergencies or a down payment on a house. You can also set up savings accounts for major life events such as retirement and death. With the rising costs of funerals, for example, saving money for it now will help loved ones find a funeral director and pay for it without any stress or worry.

Pros: A savings account is easily accessible when you need money you can go to your bank and withdraw what you want. When you set aside money into a savings account, you’re not putting your funds at risk - a savings account is stable.

Cons: With low risk, comes low returns. Interest rates on savings accounts are lower than any other account. If you are planning on leaving the money in there for a long period of times, you may want to consider a different type of account with a higher interest rate.

Investing

Investing involves you allocating money for a long period of time into an investment, in the hope of making more money on it. When it comes to investing, there is no guarantee you’ll get your initial capital back, or make a profit. But you could end up growing your money, depending on how your investment performs.

Pros: When buying stock or another investment, you do so hoping that your investment will appreciate over time and earn you some money back. Stocks typically have the highest average return. However, they come higher risks. When looking to invest your money you have lots of choices too, from a classic car to a house.

Cons: Investing involves you allocating money for a long period of time into something that should gain in value, in the hope of making money on it. When it comes to investing there is no guarantee you’ll get your initial capital back, or make a profit. But you could end up growing your money, depending on how your investment performs.

Taking money from an investment is not as easy as withdrawing it from a savings account. While it’s best to invest for the long term, if you need the money and want to sell what you’ve invested in you need to wait for the funds to become available.

So whether you put the bulk of your money into a savings account or into an investment, it will depend on various factors and what suits your situation best. Both of them are important for overall financial security.

For spontaneous spenders, the word “budgeting” can cause alarm bells, with the thought of having money left over at the end of the month seeming unattainable. People often think budgeting means having to cut back on the things that they enjoy. Being money smart doesn’t have to mean you miss out.

It was recently reported that in their lifetime, a British person will spend on average £144,000 on impulse shopping. This can include anything from the chocolate bar that you grab as you get to the till and other small purchases which soon add up, to regularly splashing out on new clothes.

There’s nothing wrong with treating yourself every once in a while, who doesn’t deserve a little retail therapy. However, if this is happening a little too often and you’re in need of looking after the pounds, there are a number of changes you can make.

The experts at PIWoP, a price drop alert tool, know how important the value is of every pound that you save. They offer five ways that people can create healthier spending habits and become money savvy.

1. Are you more attracted to the sale or the item?
   

   It can be tempting to pick up a product because the discount on it seems too good to miss, sometimes this appeals to consumers even more than the item itself. If this is the case, think about if you really need it, if it’s the money off label that’s caught your attention rather than the actual product, leave it on the shelf and save yourself money. That way, when you see something that you really want, even if it’s at full price, you’re more likely to have the extra money available to buy it.

2. Budget and prioritise
   

   Some expenses come out every month, write down what these are and then work out what you have left over. Then factor in things which are bound to occur, such as meeting friends for dinner or needing new school shoes for the kids. Prioritise these additional outgoings, certain things will need budgeting for, a weekly takeaway pizza is unfortunately not one of them! Cutting out spending that isn’t a priority could leave you with considerably more money at the end of the month.

3. Why are you spending?

   Treating yourself to a new outfit so you feel confident at an upcoming event or rewarding yourself after a lot of hard work is of course okay. However, if this happens on a regular basis and your bank account is suffering for it, it might be time to change your spending habits. Consider why you are spending and how productive it is. For example, if you spend when you are stressed or bored, there are other ways to blow off some steam that are considerably cheaper. Spending is often used as a short-term fix to feeling better, as soon as you remind yourself of this, you’ll be less tempted to overspend.

4. Do you need the item now?
   

   Finding a product that you really like or can imagine yourself needing for your next holiday or when the house is redecorated can make it easy to buy it right away. However, think about if you really need the item right now. If you’re moving house next year, although those lamps or expensive armchair might get you feeling excited, it might be better to wait for any upcoming end of season sales. Technology is helping consumers to do this by taking price comparison services one step further, such as the PIWoP tool. It allows consumers who have the tool installed on their computer, tablet or phone and see an item they like, to use it to enter the price they want to pay for it and the tool then alerts them if that item does go to or more likely below their PIWoP (Price I Want to Pay). Even waiting until the next day can make you realise that you don’t really need it, or that your money could be better spent elsewhere.

5. Set goals
   

   If you’re a real foodie who enjoys going out to eat, creating healthier spending habits doesn’t mean you have to stop doing what you enjoy. Or you might be interested in fashion and are eager to keep up with what’s new this season. Set yourself goals such as only eating at a restaurant one or two times a month (or however much you can afford without overspending) or allow yourself a couple of treats a month when it comes to clothes. Saving money while still allowing yourself a few luxuries will feel much more satisfying than regularly spending and then feeling stressed a few weeks after.