Top Ten ways to spend money wisely
We all want to make the best out of the money we make. But sometimes we end up spending on things that we don’t need and end up in a bad situation. You have to understand the worth of your hard earned money. Here we share top 10 ways you can spend your money wisely.
10. Live life within limits
All of us want to live a limitless life, but not all of us are billionaires. Soit’s better to limit our spending’s than lament later. Don’t spend more than you make. Don’t take decisions impulsively, but have a clear cut disciplined approach to money spending. You should never spend more than you make in a month. Do planning and keep your shopping with in the budget because impulse shopping may give you temporary pleasure, but will drag you down in the long run.
9.Don’t get affected by Marketing
Be aware of market tricks and don’t go buying the thing because you liked the ad. An ad is just like a virtual reality. Don’t buy something just because it has 50% off. Compare the thing on its merits, not on the basis of discounts which are the result of marketing.
Don’t take the advice of store employees. They are just doing their job. Don’t go shopping with people who love shopping. They will influence your decisions and you might end up spending more than you planned.
7.Resist wasteful habits
Keep a water bottle with you instead of buying bottled water.Don’t smoke and save money. Don’t eat lunch outside instead pack your own lunch. Cut your junk food quota and resist ordering in as much as you want. These seemingly frivolous habits can help you cut down your budget to some extent.
6.Pay in Cash
Credit card and debit cards make you spend more as there is no limit. So buy in cash since we are more affected by real money going out of our hands than virtual money. Also, don’t carry too much cash. The last point has a safety factor as well.
5. Find out cheap deals
Keep your eyes open and look for deals, coupons and sale items. Compare the price before buying. Buy Generic products and bulk items. Take public transport. Try spending on quality second hand goods. Buy generic brand things instead of name brands because the higher price doesn’t always mean better quality. Keep an eye on things that will go on sale at the season end
4.Understand the importance of saving
Everyone should know the importance of saving and the power of compound interest. Every earning person should invest part of his salary in investments including mutual fund and bonds. Even a meagre amount of money invested per month can result in a fortune later and make you financially stable. There is also the option of individual retirement account (IRA)
3.Track your expenses
Keep a diary or download an app and keep track of your spendings for a month. This will provide you great insight. Review carefully and see how you could have spent more wisely. Take notes and apply them into your life. This will also help you manage your money better and make you feel in control.
Focus on things that you need currently for a good life.For eg. Buying a car or a house can be a priority for someone. Our priorities force us to take smart steps and spend wisely. When we are focusing on greater things, we can let go of distractions like buying a new phone and jewellery. Provide yourself visual reminders by setting the car you want as your desktop wallpaper.
1.Create a budget and stick to it
Before going shopping, list out the things you need and price range and after going to the shop, keep that in mind and focus on the things on your list. This will remove unwanted distractions. You will be able to choose the best product available in your budget.
We hope you found this article interesting and Informative. Here we listed top 10 ways to Spend your money wisely. Earning money is a hard work and we must spend it wisely for a better future.