Some people were raised to be smart spenders and even smarter savers. Others even appear to be born with good financial behaviours. However, there are those who do not share the same qualities and feel like, well, they were born to spend. Often, they have a difficult time saying no to discounts, use credit for items they do not really need, and keep putting off saving. While there’s nothing bad about enjoying life with your hard-earned money, overspending can create trouble and not just in your bank account. For people who consider themselves spenders, here are some tips that need not come from a financial planner. These are very common and practical. You’ve probably heard of these but did not put to good use. Well, until today.
- Save first. Soon as money hits your payroll account, transfer your savings to a separate account and take measures to prevent you from accessing it.
- Leave extra cash and credit card at home. Especially when you anticipate spending more than you need to, have the courage to leave your extra cash and plastic at home.
- Cut down on stuff you don’t need. Gym membership you hardly use, expensive coffee, cable and mobile plans, dining out, and cab fares are just some ‘minor’ expenses to reconsider. A little downgrade may be enough if you can’t get rid of these altogether.
- Avoid debt. Debt may be inevitable in life and some can be good, like when buying a house or setting up a business. But if your spending habits include a cycle of debt or maybe you have acquired one you can’t get out of, consider talking to an expert such as a financial planner for options and strategies.
- Be healthy. Sickness can cause financial wreck like no other, so if you can’t kick the spending habit, at least keep yourself healthy to minimise spending on illnesses. Most healthy habits also mean savings like drinking water instead of flavoured drinks and eating more fruits and vegetables instead of meat.
- Set financial goals. Goals can make everyone, even spenders, exert effort. Start with realistic short-term goals like saving a certain amount this month then move to bigger and longer goals like setting up retirement savings.