As we get older our spending habits become ingrained in us
to the point where it's hard to break the habit. In order to modify your
spending habits, you must decide if you truly wish to live a frugal life, or
continue on your path of financial destruction. If you've chosen to break the
habit, then consider the following changes:
1) Leave the credit
cards at home: The best way to curb your appetite for spending money is to
carry cash instead of those plastic demons in your wallet. If you don't have
them, you won't want to use them. Cash and carry helps you withstand the urges
of impulse buying. No one wants to be embarrassed at the checkout counter for
not having enough money in their wallet. Therefore, if you calculate in your
head what you're about to spend, you'll spend less.
2) Needs vs. Wants: We
would all like to have enough cash to purchase everything we ever wanted,
however, we're not that rich. Therefore, we must distinguish between our
immediate need versus our desire to have an item that will allow us to keep up
with society. For example, if you have a phone that works, why would you want
to buy a new one at a costly price? Now if your phone were broken, preventing
you from making an emergency call, then I'd say, bite the bullet and buy a new
phone. If your television works why spend money you don't have on credit, plus
interest charges, in order to have a bigger screen? It doesn't make sense. When
you use a credit card to purchase big items, you must tack on the interest
charges to the purchase price - did you really save anything? Be smart and buy
only what you need, versus what you think you cannot live without. If a bad
storm such as a tornado swept through your home tomorrow, and you were left with
nothing but the clothes on your back, would that 60 inch television really
matter to you in that moment? Priority is key to understanding the difference
between need and want.
3) Allowance: When
you were a kid you probably were given an allowance to use for what you wanted
each month. Some saved that allowance for a rainy day, while others spent it on
candy, games, and toys. Now that you're older, consider giving yourself an
allowance from each paycheck. Before considering that allowance make sure you
have enough for the bills, shelter, food, and necessary items you must purchase
like gas for your vehicle, or transportation fees for work. Once you've decided
you might have a little left over after putting money into savings, allow
yourself the luxury of treating yourself to something, if you must. Whether it
be that manicure, pedicure, or that extra card for your digital camera, don't
feel guilty if you really need a pleasure treat. Every time you go to purchase
something, remember to ask yourself, do I really need it?
4) Entertainment: Even though I am a published author who
appreciates when a person buys my books, I know that it can cost money that a
person doesn't have available. Therefore, I suggest that if you truly love to
read, watch movies, listen to audiobooks, you consider utilizing your local
library to satisfy your literary cravings. You'd be surprised what is on the
shelves to entertain yourself with on the beach, or during cold wintery
evenings. Although I love movies presented in a movie theater, many times the
price of a movie, plus popcorn, drinks and snacks for a family of four can
become costly. So why not check to see if your local library has a decent movie
to enjoy. Another venue for cheap movies is Amazon.com. Did you know that if
you have an HDMI port on your laptop, and a HDMI capable television that you
can link the two in order to watch movies on your television? You can rent a
current movie from either you local library, or Amazon.com for less than $5,
pop your own popcorn, make your own drinks, and watch it in the comfort of your
own home. That in itself will save a family of 4 over $50 dollars a month. Think
about it this way, if you save $50 a month on movie entertainment, you can have
movie night every week and still save money $25 per month. (4x$5 + $5 for
popcorn = $25).
5) Waiting period: If you're anticipating making a large
purchase, but are hesitant making that final decision, wait! With anything in
life, waiting is the hardest thing to do when making an important decision. My
rule is 48 hours before making a final decision. I don't care how good the sale
is, or how good the salesperson is at trying to convince me to make that
decision right then and there, I tell them I'll get back to you in two days
time. It pisses them off royally, but it gives me the opportunity to do some
research, learn more about the product, in order to make an informed decision.
Thankfully, I've been able to save myself from the hassle of returning said
product because of inferior quality, or buyer's remorse. Impulse buying is
deadly to your frugal living lifestyle.
Comments
Post a Comment