We all have different spending habits we picked up while growing up, or when we became independent and started to make money on our own. Generally speaking, one of the easiest thing to do with money is spend; real or imaginary. A lot of times, we spend so much and save very little. We spend our hard earned income on things we rarely need, simply because we want to impress people or live up to the standards the society and people around us have set for us.
These spending habits sometimes lead to accumulation of debts that we find very hard to recover from.
If you kill these three spending habits, you might just be on your way to your financial freedom.
Spending on impulse
One of the worst thing that can happen to your finances is spending money anytime you have the urge to do so. Going to the shopping mall without a budget or browsing through online stores are easy ways of throwing money away without even realizing it.
We receive hundreds of email notifications daily on prize slashes, juicy offers of up to 50% off on items bought within a very short period of time, which sometimes lead us to buying things that we do not need.
Before you hang out with those friends at that choice restaurant this weekend or pick those items on the rack, take a breath and ask yourself if you will do same in a week, two weeks or a month’s time.
To break the jinx of impulsive online purchases, you may need to unsubscribe from the numerous sites that send you updates regularly and get engage in other activities that will leave you with very minimal time to “fool” around the internet looking for best clothes and accessories.
Spending to impress
Many of us are guilty of this habit of spending to impress. This could be trying so hard to impress our friends, co-workers, family members and generally the people we care about. We sometimes go overboard trying to create this impression that will fall into huge debts.
Sad thing is, some of the people we try to impress don’t even notice the efforts. The friends and co-workers whose standards we are trying to measure up to, probably have other sources of income that supports the kind of lives they live.
A sincere heart and a caring soul is all that you need to impress anyone sometimes.
“We spend money that we do not have, on things we do not need, to impress people who do not care” – Will Smith
Spending money before earning it
Have you ever made a financial plan against an expected salary raise or bonus? This is absolutely wrong and a sure way of setting yourself up for debts. These are not guaranteed income, and should not be depended on.
People buy things in anticipation of an expected income, and because they are not guaranteed, they sometimes don’t come at all or come long after the anticipated period.
Spending money you are yet to receive causes a strain on your finances and puts you under pressure to settle debts from your regular income which may eventually lead to more debts.
Getting overdraft or credit card from the bank to pay for your daily needs such as foods and gas without plans of cleaning it up before the due date is another way of heading towards financial “doom” if not properly checked. It is very easy to pile up debts using the credit card, knowing that you can always pay later for items you’re buying now.
One way to avoid the burden that comes with spending money you have not earned is not including such funds when drawing up your financial plans. By doing so, you will limit yourself to the reality of your financial position.
Do you find yourself struggling with any of the habits highlighted above, it is high time you took a decision to drastically cut down on all unnecessary and impulsive spending, have a spending plan and stick to it, live for yourself and not the society.
Take charge of your finances and work towards achieving your financial goals.