I use to fall into the second category.No matter what I tried, I never felt financially well.Here's what I recommend you do to work on your financial mindset.
Starting a budget quickly paid off.I became aware of my situation by tracking my bills and spending. With the small savings, I started to accumulate more and more.
I saw a big difference in my monthly outgoings as I didn't want to see my whole income used to pay down debt.I utilized the pay yourself first method and deposited cash into a savings account every months.
I set up a monthly direct debt via an online investment service.Investing a small amount helped me be less vulnerable to market fluctuations. However, I'm still invested for compound interest that leads to bigger returns over time.
There's less to worry about when you know how you're going to pay for emergencies. Start slow, build an emergency fund for just one month and work your way to 3 to 6 months.
How much do you want to retire with? How much do you need to invest in order to get there?Once you settle on an amount, continue to invest monthly. Monitor your account monthly