5 tips for becoming a smart spender
These days there is a lot of emphasis placed on what we buy and how much we spend. The type of car you drive and the home you live in are common questions people will ask you. It is not really about how we spend our money, but what we spend it on that seems to matter to most people. However, you need to take a lot of consideration into your spending habits and how much satisfaction you are really getting from them. If you love nothing more than settling down to watch movies every night, an expensive TV is probably a worthwhile investment. However, if you hate being in the one place and love exploring, it is better to spend your money on doing this, rather than material things. These are some tips for becoming a smart spender.
1. What makes you happy?
You have probably heard lots of stories about celebrities who seem to have it all, material wise, but then check themselves into rehab every other year. They are not happy because these material things are not making them feel happy. If you want to become smart at spending, make sure you spend your hard earned cash on things that will make you feel better. If this means travelling the world – do it! Or if you want to own a coffee shop, save up and do this instead. Think about when you are at your happiest and spend your money on these things. This is what is most important.
2. Wasteful spending
Look at the cash you are spending each day and where you are wasting money. You will probably find that you are wasting a lot on things which aren’t really bringing anything to your life. For instance, are you buying lunch every day or picking up a coffee on your way to work? There is nothing wrong with doing this as a treat, even once a week – but doing it every day won’t create the same level of happiness and it’s a lot of wasted money which could be spent on a better future. The little amounts add up, so be careful of wasteful spending.
3. Quality of life
Getting to a good financial position is not about what you own, but the quality of your life. Possessions don’t really mean anything, but a good quality of life is what you want to aim for. Take time to consider what sort of quality of life you want and it doesn’t matter if this means you really want to have an outside pool – they are your dreams and you can create any goals you wish. A great quality of life is where true happiness lies, so work out what yours is and stick to that. A vision board is a good way to create the life you dream of. Think about the quality of life you want and end any spending habits which are holding you back.
4. Spending habits
It is a good idea to take time to consider what your spending habits are like. For instance, are you spending a lot of money when you feel down or depressed? Are there any specific patterns to your spending behaviour? If you understand why and how you are spending your money, you will be in a better position to make changes to improve your spending. It may be that you spend money like crazy as soon as you get paid and this is maybe the time when you should organise other things to do, so you don’t have the temptation.
5. Save your cash
It may seem like it’s easier said than done but even if you can manage to save a little every day, you will greatly improve your spending habits. If you think about what you are spending your money on, before you spend it and put the money away instead, you will become a much smarter spender. For instance, if you were going to spend money on a taxi, but decide to get the train instead – put the money away that you would have spent and save it up. If you do this every day, not only are you becoming better at spending, but also at saving and you will definitely reap the benefits of this in the future.