How often do you feel like you shouldn’t have spent the amount that you did? If the answer is “Quite often”, you need to prioritise your money spending habits. With the economy shaken to the core because of Covid-19 pandemic, now is not the time to spend your money mindlessly. It is extremely important that you keep an eye out on your spending habits and then analyse ways in which you can change them for good.
Becoming a saver from a spendthrift is not that tough. It is all about understanding the tricks and implementing them in real life.
Here, we are going to share 10 useful tips that you can implement to become a saver.
Stop! Wait
As confused as you are now, know for a fact that one of the worst habits of an overspender is impulsive spending. The only way you can beat that habit is to impulse out. If required, you can even spare some time to decide how much you need to spend and how much you need to avoid.
Just because you have the means to spend the money doesn’t mean you have to spend it without thinking twice. This is one of the worst habits that spendthrifts have.
Change that. If there is a new phone in the market but you have a perfectly functional phone in your hand, prepare your mind that you don’t need a new phone. Spending money on it is not a necessity.
Avoid using credit cards
Studies and research have found that people to tend to buy more and mindlessly when using a credit card because they don’t have to pay the amount right that second. People are likely going to spend 83% more than standard, which is crazy.
One of the best ways to control this kind of overspending is by taking out a limited budget of hard cash before you step out of the house for making your purchases. This gives you a limited resource, so you don’t end up spending more.
Focus more on cost effective convenience
We tend to buy things for our convenience. Be it a new pair of jeans or even a new car, there are several factors that we spend on. But things become worse when the spending becomes an indulgence instead of a convenience.
If you are planning on buying a car, and you absolutely don’t need to spend for a brand new one now, spend it on a second-hand car that will likely come for half the price. It is all about the decisions you make that impact your life in the end.
Step out of your stubborn nature
You will often come across people with a mentality of owning something in specific or not owning anything. The “I’ll get it, or I’ll not get anything at all” mentality is one of the worst triggers of overspending.
It is okay to have choices and it is okay that you want to indulge in a few things occasionally. But, when you do this consistently without realising the kind of consequences they bring, that is where the problem starts.
The item that you are adamant about buying might seem like the best one for you but there could be even better options at a cheaper price that you are not even considering. Change this attitude if you want to save your money.
Be educated about combined finances
If you have a mutual savings account with your partner, it is likely that there will be disputes in the long run. Unless you are a millionaire who doesn’t have issues with the money spent, it is important that you educate yourself. It is possible that you might be a saver, but your partner is a spendthrift.
In such cases, it is necessary that you both have a mutual understanding of finances which would help control the unnecessary spending of the money in the account.
Know what your triggers are
Many shopaholics shop to reduce stress. Retail therapy is a viable subject that many people leverage, especially the ones who are privileged and can afford to splurge. But this is where the problem arises. If you are personally struggling with something, spending excessive money is not the solution at all. This worsens the condition.
Next time you have the urge to buy something that you know in your heart that you don’t need, ask yourself why you are even considering buying it. List out the pros and cons and that should further help keep things quite settled for you.
Know the purpose of money
All of us work hard to earn money. For the most part, people work to secure their old age and some work to lead a comfortable life.
The purpose and meaning of money are different for different people. This is where you need to revaluate things. If you have financial goals, pair them with the purpose of money. This is what helps keep you going when we are in the talks about saving more money.
Every time that you set aside some money towards your financial goal, know that you are contributing to the purpose of money that you have in life.
Focus on your travel expenses
Travelling is expensive. There is no doubt about that. But, if you do your research right, you can travel smart instead.
The process is not that extensive, you just need to plan things carefully. Do your research and find the destinations that are worth spending your money on. Try and visit during the off-season to further save up more for your future goals.
There are several websites that allow you to plan your travel smartly, so you get the best out of your spending.
Look into your inner self
When it comes to spending money, it is all about self-control. If you don’t have any self-control, it is likely going to end up affecting your bank account statements. If you are an over spender, look at your monthly credit card bills and accept where you went wrong. Check the indulgences you made.
And, cut them out.
Ask for a bargain
If you are spending your hard-earned money, asking for a bargain is not out of the loop. Don’t be shy about it. But, always ensure that you bargain within limits and don’t be unreasonable about the same.
Another important thing is to be conscious about the spending. If you have a shop that 10 kms away from home and you have to spend more money to get there than what you will save in the bargains, there is no point going. So, plan things accordingly.
Saving money is all about your planning. If you can plan things better, it is important to ensure that you analyse your spending, make a list of things that are not required and practice self-control.
