Something about spending money is this, you never know you are doing it wrong until your purse is empty and you realized you haven’t solved your major problems. It doesn’t mean you don’t manage your finances well but you have some bad spending habits you didn’t know you have. It might just be one or two and might just need you to make little adjustments to see positive results in how you spend your money.
Today you will be discovering some spending habits that haven’t been helpful to you. All will not apply to you but you will see one or two habits you are guilty of. Before you didn’t know it was affecting you but after today you know.
Do you have some bad spending habits?
Don’t be too quick to say no yet. Let’s answer some few more questions before coming to a yes or no conclusion.
Have you ever just made a purchase as soon as your paycheck showed without making a budget or planning?
Do you spend when you are happy, sad or maybe angry but more of on happy times?
Is there something lying around the house you’ve never used and don’t have plans for it yet but you bought it with your money?
Do you ever go shopping without a list? Like very often or just once in a while?
So a friend has it and you want it too then you go ahead and buy it. Have you done that before?
A yes or a maybe to any one of the above questions means you do have some bad spending habits. Let’s see what they are.
Spending on things you think you need
With no offence meant I feel this should be the habit of someone not reading this post right now. If you are reading this right now it means you are struggling with making the most out of your income. Hence you shouldn’t be spending like someone who can afford necessary and unnecessary things.
You can’t be buying things or spending money on things you are not sure of its use to you. On a serious not even if you are financially stable this is a bad spending habit you need to stop right now.
However, this might not be intentional. Remember you might just be discovering it today. So, how will you know you have that kind of habit. It’s simple, you often end up not using that thing.
Why is it so? It is like that because you assumed you needed it. You didn’t sit down to really think if it’s necessary for you. It doesn’t mean what you bought is a bad product. no. It’s just what you don’t need.
It is very easy to stop this habit. All you have to do is make sure you are buying necessary things and you stick to a budget.
Spending without a Budget
If you think you know what you need all in your head and you don’t need a budget. Wait until your paycheck comes in, then you realize how confused you are and everything seems important.
The purpose of a budget is to help you avoid mistakes like buying what you don’t need. Hence, making a budget is important to help you priorities your needs.
A budget helps you know how much you can spend and how much you can’t. See budgeting as a spending caution. Sitting down to make a budget helps you leave according to your means. I have said a lot about budgeting in my previous posts because it plays a vital role in our personal finance. You can read a post where I talked about it.
Therefore, if you spend without making a budget or sticking to it. You better start because spending without a budget is a bad spending habit that will cost you a lot.
Just like we have emotional eating, emotional spending exist. When I was doing my little research for this post and I asked some friends what bad spending habits they had. The majority was emotional spending.
This applies mostly to happiness. If I must confess, I am an emotional eater and spender too. When I receive good news or get the result I want, I spend the last cash on me without remembering what it was for.
I know you might just be like me and the rest of my friends. I will say it’s a good thing because I only spend when I’m happy but that’s a lie. It ends in regrets, especially when you are broke like me trying to fix your income. Happy or sad one shouldn’t spend out of emotions.
The easiest way to stop this is by not spending when your emotions are high. Just as you would be advised not to make a decision when very happy or angry. I will give you the same advice here. Hence, stop spending when you are moved by your emotions even if it’s a for a good reason you might end up not liking the result. Except if the money on you was just for anything.
Spending to Impress
If you find yourself spending on something you don’t need just because a friend has it then you are spending money to impress. You want to show you can afford it too and you are letting competing with others get the best of your finances. Life is not a competition so is how you spend your money.
Maybe you want to foot the bills anytime you hang out with friends. Remember there is nothing wrong with the drinks being on you all the time as long as you can afford it. However, if the motive is to impress and you don’t have that much please stop.
You are responsible for stabilizing your finances no one will pay your debts with you. Anytime you mismanage your income it’s either you add more debts or you can’t save any money.
Before you want to impress anybody make sure it won’t affect your finances. Make it’s not more credit on your credit card and above all make sure it’s well planned for.
Shopping without a list
What ends up happening when you go shopping without a list is this. You end up picking on things you didn’t budget for. This will lead to you spending over you budgeted for.
There is nothing wrong with adding what wasn’t planned for as long as it doesn’t make you go over your budget. The purpose of making a list is to help you stay on budget.
A shopping list consists of what is most important at the moment. Hence, try your best and stick to it or risk forgetting the important things and buying the not so important ones.
Starting to spend without planning
This includes everything I’ve mentioned. If you sit down to plan your life you should do the same for your finances. I mean it’s part of your life so take it seriously.
Apart from the two bad spending habits, I mentioned that has to do with your personality every other are habits we can change and work on.
Start making plans on how you use your money. Make money work for you not the other way round. Take budgeting seriously, stop buying what you don’t need and don’t be in a rush to spend.
These spending habits don’t have to stay with you forever and ruin your finances. You can learn easy and amazing ways to make money work for you. After knowing and discovering some of them today you never knew was bad for your finances. You can start practising healthy spending habits today. As long as you are consistent, you will see results soon.
If I haven’t mentioned any bad spending habits you think someone needs to know. Drop a comment.