Understanding the psychology behind why we spend money is an ongoing battle, an albatross around the necks of our budgets, a learning curve that continues to curve away from us.
Yet Career Overview has come to the rescue with some new tips and tricks on how best to understand your spending, and avoid it from now on.
#1- Love for sale
Sales are not your friend. Sales are pesky things that try and convince you that you need those boots/ shower curtains/ new chairs, and you should buy them now because they are discounted. If you would never think of buying it full price, put it down and back slowly away.
#2 Spend below your means
Mr. Micawber is your inspiration. Don’t let him down.
#3 Look to yourself
If you can make it, why pay for it? This means your own lunches for a start, and could extend to clothes or DIY. After all, you don’t need an entire new skirt if the hem has come lose. Believe in yourself and you shall prosper.
#4 Do I need it?
The mantra of reformed spendaholics. Just because you want it, doesn’t mean that you should buy it. Make a list of ‘needs’ and then edit. If there’s a special thing that you really want, and you understand that you want it as opposed to need it, maybe treat yourself once you’ve actually bought and paid off all your real needs. This will minimize the amount of times you’re left with no socks to put on under those classy Burberry shoe-boots.
#5 Use cash
Cash is king. Cash doesn’t have any nasty surprises a month down the track. Cash is your friend. Save up for large purchases and pay in cash, earning yourself a discount in the process.
#6 Lay off the lay-by
Lay by is tempting. Having something now always seems much better than having something later. Train yourself away from these thoughts. Lay-by is a trap that the mean nasty store wants you to fall for, and is always a dicey decision for your finances. What happens if your situation changes and you can’t afford the repayments? Save first, buy later.
#7 Divide and conquer
Put your cash in envelopes- groceries, entertainment, petrol and miscellaneous necessities. Spend only what is inside. This is especially important for the entertainment envelope.
#8 Look to the future
Immediate gratification is nice. More than nice, it’s sensational. But it’s also a quick way to earn yourself an addiction to plastic and a nice little pile of debt. Never use credit when you have cash. Never use credit for everyday expenses unless it’s an emergency. Reward yourself in the future, not right away.
#9 30 days and nights
See something you want but don’t need, put it on the thirty day list. If you still want it in thirty days, you obviously really want it. If you feel so-so about it after that tine, then save the money for something special.
#10 Talk it through
Part of our problems with money come from our inability to talk about money, in a positive or negative sense. Equating your importance with what you own, and thinking that money speaks for itself, is a quick way to earn yourself some debt. Be honest- saving money isn’t always pleasant. Don’t try and pretend you have it easy when you don’t.