To spend money wisely refers to using money in such a way you derive maximum value from your cash. It involves spending as little as possible for the same lifestyle thus saving more and hence leading a happy and fulfilling life. Regardless of the size of your budget use money wisely is still a great idea; it enables you to get value for your money. Do you dislike when you badly need money but you have no money in your wallet? Spending it wisely is the solution. The more you get out of every coin you spend, the more you have to spend on other important activities and courses. Spending money wisely is a skill that, like all other skills, you should nurture and practice it. With time you will be able to reduce your expenditure in all areas.
How to use money wisely?
- Make a list of the most important items and activities in your life. Align your spending with the value you attach to your purchases.
- Review your past spending to identify the items that you should eliminate. Find out if there is anything you bought and you didn’t need that much, and eradicate from your list.
- Learn to control your mind and avoid buying things spontaneously. Before you buy a new accessory, ask yourself if you really need it that much.
- Allow yourself enough time, to think things through, before making any major purchase. Make smart buying decisions by first consulting experts on the matter, friends, and family.
- Group your purchases into various categories and create a monthly limit for each classification. Categories with the highest amounts are good targets for saving.
- Make bulk purchases when buying your daily necessities (which tend to account for a major fraction of your expenditure) so as to take advantage of discounts and offers.
- Write down everything you to need to buy in advance and stick to it to avoid impulse buying. Consider making a preliminary trip to the retail store to know the exact prices of items.
- Restrain from making a purchase decision when your judgment is impaired. It is not advisable to shop while under the influence of alcohol, when hungry or listening to loud music.
- Call the providers of your basic necessities and ask for better rates. Reach out to competing provider and find out if by switching you will reduce the amount you spend.
- Shop while alone to avoid getting influenced into buying what you did not plan for. Doing so also allows you enough time to think and make a sound purchase decision.
- Shop with cash and only carry the exact amount that you have budgeted for. Credit or debit cards tend to increase spending due to some hidden charges.
- Minimize eating out at eateries and instead prepare your foods at home. Packing a lunch will help you spend money wisely.
- Make a habit of allowing some time before you make the actual purchase. It can be a night, week or even a fortnight. This gives you some time to reflect on your intended acquisition.
- Do not fall prey to witty marketers. Tread adverts with skepticism. Do not buy an item simply because its price has been reduced. Stick to your list.
- Before making a major purchase, research online, read consumer reports and ask around for the best place to buy the item.
Spending money wisely ensures you get the most bangs for your buck. It allows you to spend the least amount possible leaving you with a lot of money to save. You can use money wisely by reviewing your past expenditures to spot and eliminate unnecessary purchases. Create a budget and stick to it. Make an effort to buy the items in your list in bulk to get
discounts and offers.
By: Joni Kim