We all love spending money. It’s just something no one can deny. However, it’s important for you to understand that how you spend your money will greatly affect your financial success or failure such as getting out of debt or saving up for future projects and investments. You have to be smart when it comes to spending in order to avoid paying too much for something that you probably won’t need anyway or going on an expensive dinner date while your bills are piling up at home. Needless to say, your money will go a long way if you know how to spend it wisely.
Here are the top 10 tips we’re sharing with you to so you can improve your spending habits and develop better financial management.
1. Don’t let your emotions control you. You may have heard this many times from your spouse or from your mother who always see how you react whenever you watch an infomercial about a 50% off hair curler. You think you need it so badly you just had to call and order the curler right away. It does feel good to spend money at the moment, but after a couple of minutes or months, you’ll feel regretful about the decision you made. In order to avoid unnecessary spending, give yourself enough time to think whether you really need to spend your money or whether it can wait for a couple more months when you’re able to save up for it. It can be a tough thing to do but in the long run, it’ll produce a lifetime of rewards!
2. Identify a bad spending habit and replace it with a good one. You can have this done by first, checking your bank account or talking to your spouse. Identify the spending habits you’d like to stop doing; it doesn’t matter if it’s big or small as long as you start working on it. The most common spending habits people make are going over their cell phone data usage, eating when their fridge still has so much food in it, impulsive buying online, or buying duplicate items even when they already have a bunch of it in their pockets. In order to stop these habits, replace them with the good ones. For example, instead of scrolling through the Amazon products listed on sale before going to bed, read a suspense thrilling novel instead to keep you busy and entertained. If you do this every night, it will become a habit that is going to be beneficial for you financially in the long run.
3. Follow a strict budget. You have to learn to prioritize your spending and doing that is through living on a budget. List the goals you want to achieve by the end of the month or year such as getting out of debt or going on a vacation. If you follow a budget and has a solid reason why you should spend wisely, saving will make a lot more sense. You’ll have something to encourage and motivate you when you keep your goals in mind. Now, remember, everything takes one step at a time. Whenever you swipe your card or pay something in cash, remind yourself of your goals and the budget you follow. If you constantly think about these goals, you’ll find it a bit harder to spend money as time goes by.
4. Research first before you shop. Let’s say you were at a mall shopping for a TV because you just moved into a new place, don’t buy the first one that you see or like right away. Do more research, find better deals, look at other establishments with lesser prices, and compare and contrast the benefits you can get from them. Make sure you have the necessary information about the product that you plan to purchase so you can make a better decision.
5. Find a personal financial advisor. The words “financial advisor” may sound a little intimidating but try not to be intimidated! Find someone who cares about your financial stability. If you’re single, you can have a family member or a friend who has a proven record of good financial management. If you’re married, have your spouse become your accountability partner. These people must be willing and knowledgeable when it comes to the importance of money goals and help you out in making big purchase decisions. They will remind you what your goals are and push you to achieve them!
