We are approaching the 8th month of the year and we hope you’re finding some success managing your finances. But, if you feel stuck or confused, take time out to review the topic we’re tackling today.
You need to know that understanding the value of money (or the need for savings and investment) is one of life’s biggest lessons. However, understanding all of that isn’t enough, you have to practice it by learning to spend money wisely and carefully.
A big part of financial success is determined by how you spend your money.
“It’s not your salary that makes you rich, it’s your spending habits.”
― Charles A. Jaffe
Trying to Impress People
Trying to impress people is a financially destructive move and it’s also not worthwhile. If you’re digging into your finances to buy the most expensive cars, gadget, clothes etc. to “keep up with the Jones’s” then, you’re spending money on the wrong things.
Avoid getting into these situations and set financial goals and ambitions without letting your self-worth be based on impressing people. Always remember your goals!
Clothing you would wear just once
Most of us are guilty of buying clothes we wear just once (side-eyes: aso ebi, especially the obscenely expensive ones). This could be as a result of a wedding, event or even fashion trends. There is really nothing wrong with looking stylish, or celebrating with those we care about. But we have to always consider the cost implications because we end up wearing these outfits only once.
Try as much as possible to avoid incurring huge expenses on items you would not use again.
Avoidable Bank Charges
Have you ever tried adding up all your bank charges in a year before? I tried it, lol.
You have to know that little deductions end up summing up to a whole lot; so you have to avoid these charges as much as possible. You can:
- Use your banks ATM machine for withdrawal to avoid charges
- Ask questions or report any unusual charges to the bank for rectification
Practice Comparison Buying
I want you to first understand that economical is not synonymous to Poor.
- Most people prefer to buy branded products to some alternatives. But then these alternatives are economical and not fake. Going for them will help save more money.
- Also, buying from local market is more economical to buying from some stores.
My point here is not to discourage you from what you’re normally used to, but for you to keep an open mind. Once you realize that the cost of getting some particular products have a strain on you. Practice comparison buying.
Do you feel attacked yet?
Some other things you can avoid spending on are:
- Eating out all the time
- (Avoidable) Expensive rent
- Express shipping
The list of things to avoid can go on and on. Do you know any others? Add them in the comments section.
Culled from: Happy Economics