Before you can develop the habit of spending money by choice rather than impulse, you need to understand how you handle money. People usually debt start saving without changing their spending habits. To save more money, you’ll need to spend less money. You can start by looking over this list of 7 common spending errors.
- Buying on impulse. While yes it’s easy to pick up a few things quick because, well, it’s easy. Buying on impulse adds up. Think, do you really need this or that item?
- Buying on credit. Interest rates make that $20 shirt cost closer to $25. And that’s if you pay on time.
- Buying at the wrong time. Buy fruit when it’s in season, clothing when it’s on sale etc. Avoid paying premiums or “regular price” simply because it’s the wrong time.
- Buying love or power. Some equate love, power and even happiness with spending money or obtaining this or that. They aren’t going to love you more because you’re buying them gifts all the time. Just saying!
- Buying the wrong product. Do comparison shopping when there’s an item you need. Maybe there’s an off brand version of an expensive product you need. Or there may be a sale of the same product at a store you don’t frequent. Do the homework.
- Buying convenience. Convenience stores, convenience food, etc. They’re expensive and come at a markup. You can make the same things on your own for a fraction of the cost. And it will taste better too!
- Buying status. Why do you need the biggest tv screen in your circle of friends? Do you really need every video game console? Think about it!
Have you ever allowed yourself to be the victim of these spending errors? I know I have!