Economics has taught us the concept of man’s unlimited wants given the scarce resources. And that we need to spend less than what we earn. Suffice to say that money indeed is a scarce resource. We need to stop and rethink our values, particularly those related to money. It translates that we need to save more while spending less.
Marketing and finance have further reinforced the concept that we need to strive in order to maximize and enjoy the value of money. It emphasizes that we need to make full use of the value of our earnings. And that we should be wise spenders and critical of every cent we pay in order to satisfy our unlimited wants.
Spend Less, Save More is Personal Money Management
Spending less is not a brainer issue. It is just a matter of habit-forming. Spending less than what you earn gets you debt-free as well as saving more for emergencies, retirement, and huge purchases for lifetime investments. This brings you to a life of financial freedom and sound personal money management.
Despite the complexities of our endless ‘wants’, we need to know what really matters to ourselves and to our loved ones. There’s so much around us to satisfy our never-ending wants. Recent developments in technology, social media, digital marketing, and many more have succeeded to convince us to spend more each day.
We tend to overlook that money is hard-earned. Hence, we need to set our values in order to tailor-fit our lifestyle. We spend and enjoy only on those things that really matter. Let us cut back on our spending, in a sense, we strive to save more. Now, let me list some ways and tips. They are incredibly easy you would have never thought!
1- Stop impulsive spending. Ladies beware! Mall shopping, browsing sites for online purchases, responding to marketing blitz, and all those unplanned purchases are a big NO. Your spending should always be planned and not spur-of-the-moment just to satisfy your moods and fancies. Or just to keep up on what’s trending.
Planning for your purchases calls for sound budgeting. A budget should be in place so that you could monitor where every earnings go. Purchases are categorized so that you would know where to adjust and by how much. Getting on a budget would greatly help to curb impulse spending, it is a way to help you have a framework for your spending.
2- Pay in cash. No credit cards and debit cards! A discriminatory spender is conscious of every buck he parts with. A cash buyer tends to be selective, and non-impulsive in all his purchases. Do not be misled by those marketing slogans about the conveniences of cashless buying. You might realize later that you are not the target market for cards.
Additionally, you may not be aware that cashless buying is not free after all. You are paying for annual card fees, and the high probability of paying finance charges in case you can’t pay the full outstanding balance. In the long run, you aren’t saving, instead, you are spending more on your purchases. Conveniences, indeed, are sunken costs!
3- Track your daily and weekly spending. Not enough for household expenses? A very common issue but in most cases, an issue on overspending. A short-term resolve is to keep a record of your daily and weekly spending. Then categorize according to essentials, recurring, and regular items. In the end, it paves the way to budgeting,
4- Make a grocery list. Grocery shopping is a fun activity for family members but it would be a wise habit to draw up a list before leaving your home. In this way, you are doing a great deal of planning. You would know what is needed and what stuff that you can forego. It will save you time, energy, and money if you draw up a list beforehand.
5-Do not stick to one brand. Though brand loyalty is a plus point in marketing, flexibility in choosing the brand is logical and practical. A wise spender finds time and effort to calculate his probable savings, and benefits as well if he considers many brands to compare. Compare as to cost, quality, and the credibility of the maker.
6- Take advantage of sale ads and promo. Get updated on those ongoing promotional sales. Off-season sales, bargain runs, and garage sales are certainly wise buys. Nevertheless, be discriminating. Know what are your essentials, and some stuff you may need in the near future. Always plan your purchases. A great deal of savings can be realized on marked-down items, and also on bundling schemes.
7- Cook at home. Although dining out is a worthwhile family bonding activity, nothing seemed comparable to home-cooked meals at the dining table. A wise homemaker does the calculations on every cent spent on daily food. Thinking that a budget for food is essential, you are spending for conveniences and delivery fees for outside food.
8 – Plan your daily errands. Consider that your daily personal trips entail costs. Trips to the bank, grocery, market and other places for your daily needs and transactions need planning, too. You could save on time, gas, and other related expenses if you do the planning, notwithstanding your energy and effort, too.
The Takeaway – save more while spending less
The list is not meant to be exhaustive. It all boils down to personal differences and sound money management, It does not matter how much you earn, or what is your status in life. What is important is how you control your spending and what you can afford to part from your earnings. Maximize the value from every spending made.
Ultimately, it drives you to save money while spending less. Practice the tips and strive to get the best value you can for each nickel and dime you bring in. It may be habit-forming indeed, but as you progress it would be your way of life in terms of managing your personal finances.
One last throw –spend less, save more! Your life-long journey towards financial freedom.