Just about everyone loves spending money. That’s the whole point of moving up in the world. Covering just your necessities doesn’t necessarily take a lot of money, but getting all the extras and the “nicer” things does. The more money you have, the more you have to spend. So, the better your job pays, the freer you are to make these purchases.
Unfortunately, it is all too easy to fall into the habit of spending outside your means, and getting yourself into financial dire straits. You can avoid the fear of getting bills you can’t pay by following a few simple steps.
Examine your credit situation. Credit is not a bad thing, and for some things it is essential. There are very few people who are able to go out and buy a car or house without credit. And to attain the type of credit you need to make those purchases, you have to establish a credit record through routine purchases. However, having a vast amount of potential capital in your hands can be a dangerous thing. If you are having problems making your credit payments each month, you need to take a closer look at your spending habits. There’s no need to have multiple credit cards with a carryover balance on them. The same goes for store credit. Interest payments will drain your savings and income faster than anything. If you use credit, use it wisely. If you can’t, stop using credit now. Don’t be tricked by credit companies’ sweet promotional offers. You may be able to use them to your advantage, but if you’re not careful, you’ll have a huge pile of debt at an outrageous interest rate that you’ll struggle forever to pay.
Don’t let emotions drive your shopping. Some people will shop not because they need something, but for the rush they get from the purchase. If you find yourself in this situation, you should fix the habit. It is not healthy for your psyche or wallet to shop to make yourself feel good. If you’re buying on credit, if you are not careful in how you follow through it will only make things worse later. If you like to shop as a leisure pastime, leave the credit cards at home, and only bring along money you can afford to spend. Take the time to browse without buying, or find a healthier hobby.
Shop around before you buy. Comparison shopping is one of the best ways you can save money on all of your purchase, especially the major ones. If you are a shopper by habit, instead of buying the first item you find, go to different stores to see where you can get the best deals. Better yet, use the internet to your advantage and save on gas money. There are numerous direct comparison sites available for all types of goods, and you can spend several hours browsing through many different stores from the comfort of your own home.
Again, be careful with your credit cards and accounts. The idea is to be saving money, and the best way to do that is by not spending it.
Avoid impulse buying. The tips up to this point should help curb this urge, hopefully. However, don’t forget when you are actually buying something that you are dealing with a salesperson. Just as you are trying to keep your money, they are trying to get it.
No matter how nice they may seem when they offer those special accessories you can’t live without, keep in mind that in most of these situations, this is more of a “Do you want fries with that?” proposition than anything else. Think over these little extras carefully before you add them to the list. A few “bargain” add-ons can add up quickly.
Think practically about what you’re spending. Before making any purchase, consider how long you’ll have to work to pay for that particular item or service. Then ask yourself, is it really worth that many hours of your life? The answer may surprise you: and be the first of many steps to saving money the easy way...by not spending it!
