The hardest thing to do as a human is to stay away when the urge of spending strikes us. However, it is necessary to put a check towards the superfluous spending and keep a track on what we spend. Doing so will aid us to save precious money and rescue ourselves at the time of financial peril.
It is all about the righteous money management which remains crucial for a comfortable living, and here I share few secrets that help me to stop wasting mindless money.
1. Wants vs Needs
Always remember that we as humans, have millions of wants which last forever. Therefore, learn to spend on a need rather than wasting on a want. Understand the difference between a need, and a want.
A need is what one should/must have and a want is what one like to have. A ‘want’ can often be explained as a desire. For instance, buying clothes may be a need, but going for the branded designer clothes is a want, which could be an unnecessary expense.
2. Thrifty Shopping
Would you flush a wad of cash in the drain? Spending without a thought is equivalent to flushing money down the drain. Do not spend money without thinking or negotiating the prices. Bargain even before making the purchase based on a good old saying, “Everything is negotiable”, which according to me is a major money-saving tip.
When the demand is high, the prices soar and when demand is low, the prices tend to dip. Therefore, look for discount sales and do off-season shopping. It does not harm to buy winter essentials in summer!
Look for online bargaining sites and take advantage of coupons. Search for “coupon code” or “promotion code” to get a list of sites that offer such deals.
3. Buy in Bulk
Often we come across advertisements saying “buy in bulk and save in bulk”. You can save thousands of money, if you buy in bulk. Large quantities cost less per unit, which saves you money as well as time.
However, even before falling for it check the cost per unit price listed for every item in bulk. Perform a common math calculation for both individual units as well as those in the bulk list. Compare to understand the fact and then proceed to make the purchase.
4. Plastic Money
A real Peril: We often see ourselves swiping the credit/debit cards in shopping marts. There are thousands of people who are in credit card debt, which spirals down the financial control. However, you can reduce the amount of the credit card bills with planning. Create a budget and stick to it.
Check if you can cut down your monthly expenses by reviewing your monthly subscriptions. There could be a cheaper mobile phone plan or data plan for your smartphone.
Do you really need to subscribe to all those 100 TV channels that you do not watch? Keeping a check on discretionary expenses such as fast food, going out for dinner, and entertainment can save you tons of money.
Don’t simply get carried away but understand the terms and conditions of your credit cards. Focus on your credit card expenditure, track and compare your usage to cut down extras.
5. Think Frugal
Living frugally is not cheap. Practising frugality is spending less than you earn and saving the money to pay off debt or invest. Consider options such as carrying lunch box to the office, saving on electricity, visiting parks and playgrounds instead of expensive indoor play centers, sticking to budget, shopping less frequently are few ideas for frugal living.
If you track your monthly expenses, you will find that you may be spending on things that are not necessary. Take time to investigate smarter options in saving money here and there, and you will be amazed at the amount of money that you will save.
6. Be economical and Eco-friendly
Let us move ahead to lead an economic as well as eco-friendly life by cutting down the unnecessary expenses. For instance, switch to the use of e-paper and e magazines than the hard copies of the daily paper and monthly journal.
This way, we can skip the subscription fees and also save trees. Whenever we move out to shop, carry a cloth or jute bag instead of spending on plastic bags. This way, you could prevent the extra costs levied on them and prevent the usage of non degradable substances like plastic.
In addition to all these, money management by cutting down the useless spending becomes possible if we prevent impulsive purchases and could list up the necessities and strictly sticking to them.