In order to maintain a healthy bank account and nurture good financial practices, we must take into account our spending habits. Once you really analyse your expenditures, you’ll come to the realisation that most of your money is spent on the consumption of things that you don’t really need.
We recommend a few ways to help you develop a checks and balance system that will enable you to make better choices when spending:
1. Figure out WHY you're buying it:
It is important to know why you’re spending your hard earned money on a certain object in the first place. This will help you stay grounded and focus on the necessities, so you can avoid feeling guilty for wasting money later.
2. Choose a financial goal to save up for:
You need to have something to do with the money you're saving and it doesn't have to involve buying more junk! Instead, think of planning a vacation, renovating a part of your home, or even a bigger purchase you've been putting off, like a new car. When you know that you’re saving towards something specific, it motivates you and keeps you focused.
3. Find ways to fulfill yourself outside of shopping:
Online Shopping has made shopping so convenient and so fun that you’ll frequently find yourself browsing through online stores just out of boredom.
This habit takes up a lot of your time, which you can invest in other more productive activities. Find a new hobby or activity to fill that extra time with something healthy and fun so boredom doesn't lead you back into the stores.
4. Apply the ‘24-hour wait’ rule:
When you see an item, you have the urge opt buy, consider waiting 24 hours before purchasing it. Giving yourself a 24 hour grace period allows you to think about your purchases instead of giving in to impulse shopping. Make a note of what you want, and wait to see if you still really need, or even want, it the next day. That lawn jora worth 10K you so badly wanted? You might not feel the same urge for it the next day.
5. Consider a Fun Money budget:
One way to keep yourself on track and not derail any financial progress you've made is to consider a ‘fun money budget’. By allowing yourself some "me money" every pay period, you can enjoy without feeling like you’re depriving yourself.
It can include things like money you spend on eating out, or at the movies or even indulging in that expensive lawn jora, however, you must discipline yourself to stay within that budget.
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