How To Be Smart Every Time You Spend

Before you take out your debit or credit card…

Stop.

Think carefully about your spending choices, and you can make huge improvements in your personal finances.

We’ve all heard the sayings:

Money makes the world go round. Money doesn’t grow on trees. Money is the root of all evil.

While all three may be true- to some extent-  we still need money to survive, and to facilitate our lives. In order to live a comfortable life- no matter how simple or luxurious that may be- you have to plan your spending carefully and be smart when you spend.

 

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To make every purchase count, you need to understand your spending patterns- and change those habits, if you’re not making financial progress.

Do You Need A Budget?

You need a budget to control your spending, and to set aside money in a savings account- both critically important factors in personal finance.

Now, it’s easy to think of a budget as something you do when you’re struggling, and the phrase ‘being on a budget’ can lead you to believe that. However, that’s not the case.

Smart people budget, and they do so to gain more control over their money. You budget by deciding what spending is important, and how much you’ll spend on each budgeted item. So, start to get more transparent about what you’re allocating your dollars toward.

Impulse Purchases

We’ve all done it.

The bag of chips at the gas station, or buying desert at a restaurant (when you really didn’t need it).

The impulse buy.

These unplanned spending choices can have a hugely negative impact on your personal finances.

If you’re someone that struggles with impulse buying, then work on that issue first. Spending money without really thinking about it is a really dumb way to lose a lot of money. So work on that using tips from https://www.thesimpledollar.com/.

When you’re able to change the way that you purchase, you’ll notice that your money lasts longer. So start by thinking over purchases, and not just buying on a whim.

How Do You Shop

Whenever you buy something, make sure that you shop around. This is one of the reasons why impulse purchases can be costly. Not only are you buying things that you may not need- your overpaying for those items!

Shop around by using services like https://auto.loan/ or by doing your own research. When you can find the best price, you’re always being smart with your spending.

A Word About Discounts

You should also look to get a discount whenever you spend, too. When there always seems to be a sale on, or a coupon code available, why pay full price?

Think about these tips from https://lifehacker.com/ and make sure that you change your approach to purchasing. This is the best way to ensure that you’re always getting a good deal when you spend.

Will That Be Cash Or Credit?

If you’re someone that always tends to swipe their card without really realizing it, then you’ll want to stick to cash when you’re out and about. If you only take so much out with you, then you only have that to spend. This can also help you with controlling your impulses too.

Use these tips to make smarter spending choices and improve your personal finances.

This post is for educational purposes only.

Ken Boyd

Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies

Co-Founder: accountinged.com

(email) ken@stltest.net

(website and blog) https://www.accountingaccidentally.com/

(you tube channel) kenboydstl

Image: Bullseye, Jeff Turner CC by 2.0