If you always find yourself thinking, where did all that money go? then you might have a problem with spending. We tend to create bad spending habits over time without even noticing. There are a few factors that are responsible for this. For most people the more money they make or the higher the frequency, the more they spend. This attitude towards money can be very unhealthy and can create problems when you need a large sum to take care of important things. We are going to look at some things that you can implement to help you spend wisely and still do and buy the things you love.
- Keep Track Of Your Finances: To be able to spend money wisely you need to look at your finance records critically. Make a note of exactly how much income you get over a certain period of time. It’s okay if you have to look at your previous bank statements to be sure. Check your credit and debit statements to see exactly how much is left one (1) week or one (1) month after income. This will give you a better overall sense of your spending habits.
- Make A list of Things You Enjoy: It is important to make a list of the things you actually enjoy doing. Keep in mind that this list must be personalised to the extreme. This means that your list must consist of things that you like doing with friends, colleagues and so on. This will helps you see things that you can cut back on. You may just find out that there are things you don’t mind doing but don’t actually bring you much joy.
- Plan Big Items Ahead: This is another very important tip. There is a tendency to only spend money on major things like bills when they are due. The problem with this is that by the time these things are due you may have already spent money on things that are not as important. When you plan these expenses ahead, you can set money aside for them as soon as you get the income.
- Do Your Shopping Alone: Now what this means is that you make an effort to make buying decisions where you are less likely to be influenced. If you tend to buy things in groups you may find yourself spending more because of the tendency to want to impress others.
- Create A budget: This tip cannot be stressed enough. You should always have a budget, no matter how little the money is that you are planning for. Your budget should make room for everything, from groceries to transportation to weekend relaxation. Having a budget does not mean that you will spend your money exactly how you have written it down, because you may have to spend on unforeseen items, but it serves as a very useful guide.
- Write Down Your Purchases: Now that you have a budget, as much as possible, try to write down everything you spend money on as you go along. Whether planned or unplanned, write it down. This helps in situations where you are forced to spend more than what you budgeted for on important items. These records can help you look for areas where you can make it up.
- Look Out For Sales and Discounts: Sales and Discounts as enticing as they sound are very underappreciated, mostly because most people don’t think about them. If you are looking to make a purchase and you take your time to actually look for cheaper options you can save a lot. You do not always have to spend on the first option you come across, take a look around, see what else is available, even if you come back to your first option, you get more value for your money.
All these tips work only if you are willing to pay attention to them, in the long run, if implemented properly, you could find yourself with more money for things of value even with the same income. Let us know what spending habits you struggle with and which of these could help.