Do you have a complicated relationship with money? Perhaps the money you earn every month just comes and goes because you have so many bills to pay and your expenses are way too high. You have two options: earn more money or spend less. The former is easy to say but hard to do when you factor in your physical limitations. The latter needs effort, but if you’re serious about having a healthier relationship with your finances, you can do it.
With that said, it’s time to be more conscious of your spending.
Know How to Walk Away
You’ve just finished face toner online shopping and just as you’re closing your favorite online store, you get a prompt recommending another product at a discounted price. It’s not something you need, but the discount is tempting. You tell yourself you’ll need it eventually, so why not get it now? The problem with impulse purchases like this is you’re buying things you don’t have an immediate need for, just because they were made to look irresistible. People love limited-edition items, and that’s the same principle that guides flash sales. Your initial purchase has already been done, so you’ve already bought everything you need. Practice the art of saying no and walking away so that these marketing tricks don’t make your wallet thinner.
Hide Your Money from Yourself
Scheduled transfers are great for those who love to spend on impulse purchases. If you have that habit, you might need to hide money from yourself. And what better way to do that than by automatically depositing them into your savings or paying bills immediately when you get your salary? This way, the amount that you see on your bank account is already the money you can spend. All the essentials should be paid off first. When these are done automatically, you don’t get that feeling that you have more money than you can actually spend. You’re also removing the hesitation to pay, which is often accompanied by the mindset that you’ll pay when you have more. Get the payments out of the way to improve your credit score and save money–and then you can spend what remains.
Pay in Cash
This is a time-tested method to be more conscious of each purchase you make. Of course, financial experts will talk about the importance of improving your credit score, and the way to do that is by using your credit card. However, if you don’t know how to control your credit card spending, that good credit score will easily turn into a bad one. Unless you know yourself to be a responsible credit card user, pay by cash so that you feel the financial weight of each purchase. This also gives you a stopping cue: if you can’t pay for an expensive item right now, you shouldn’t get it. And if you run out of cash to spend, that means you should stop buying.
Though the younger generation is showing more responsibility when it comes to their finances, the call of shops still makes your wallet suffer from time to time. This doesn’t have to happen if you’re a wiser spender.