Do you ever find yourself spending money like you’ll never run out? Are you dealing with a shopping problem? Or do you just want to learn certain tips for upping your money game? Start reading to manage your money like a pro.
Here are my overall tips on saving money:
Pull your spending data from the banking app you use on your phone and analyse your purchases, use a colour system to label “essential/smart” purchases, “useful” purchases, and “impulsive or unnecessary” ones.
Add up the totals and compare the ratio to see where you’re currently at. (E.g. if a high proportion (>=75%) of your money goes towards the first two categories it means you’re already amazing at managing your money. (exceptions may occur if you have an abnormally high income allowing for more spending on inessentials)
Check how much you spend in the holiday seasons, since this is usually where your true nature as a shopper shines through.
If you have an allowance, save 5-10% each month for emergencies or bigger purchases. (Sometimes treating yourself to something nicer pays off more than spending on many small items), if you save money you will also start gaining interest.
Have a rough monthly budget plan and stick to it. After each month see what works and what doesn’t; tweak it accordingly.
There are simple and easy solutions to be better at spending, but for that, you first need to find out what kind of spender you are!
Shopaholic - You shop because you associate spending with happiness, and when you spend your body releases endorphins and dopamine, which translates into happiness in your body.
Solution: Unsubscribe from online mailing lists, reset cookies and browsing data and lay off social media to prevent online shopping triggers. Visit malls and shops less frequently and gain endorphins or dopamine through other activities such as sports.
Impulsive buyer - While impulsive buyers may not spend regularly, you do not think long before buying items and are easily swayed by trends and influencers. You might regret spending on certain things once they’re no longer popular.
Solution: Have a clear action plan when seeing something you’d like to buy, and ask yourself some questions such as “Will I wear/use this in a year?”, or “Am I getting a good value for my money?”. Stick to a shopping list and implement a timeframe for thinking over the purchase (e.g. 3 days), if you still want it after, you can buy it.
The Deal seeker - You may not even like shopping, however, when you spot a deal that you just cannot ignore, you must buy the items; small prices can pile up and cause you a shock at the checkout.
Solution: Stay clear of very deal-heavy times such as Black Friday, and rather focus on everyday deals, or set a maximum number of items you can purchase on a shopping trip. You can also limit your spending by giving yourself a budget for spending on deals.
The FOMO spender - You go out a lot with friends, maybe even to places you can’t afford, but you spend money regardless to not feel as though they’re missing out.
Solution: Think about any long term goals that you may have with money and consider whether you’d want to trade an afternoon with friends for that. Make peace with the fact that you will not always be present.
The Treat Yourself spender - You have a reward system in place for yourself where you earn items when you do well in your life.
Solution: While this motivation technique may seem harmless, it is important to make sure that the ratio of spending to success is not too high to make it too easy to spend on rewards.
Bibliography:
Comments