Are you a self-confessed shopaholic? If you’ve been spending too much, you might want to reduce your expenses and start saving for the future. It might be difficult to break away from overspending, so try the small, easy steps first. Of course, you don’t have to totally restrain yourself from buying things. Here are five easy money hacks that you can keep in mind to avoid overspending:
1. Have a daily budget and stick to it.
Start by making a list of your daily expenses, which includes your transportation fees, meals, allowance, etc. Take note of these expenses and bring only what you need every day.
2. Open a savings account and regularly deposit money.
If you just put your money in a piggy bank (which you probably see every day), you’ll be tempted to take some of yoru savings for your “emergency” expenses. Instead, open a savings account at the bank and make sure to regularly deposit money in it.
Experts advise this formula for efficient saving: income minus savings equals EXPENSES. After each payday, put a portion of your salary in your savings right away.
3. Avoid going to malls on your way home.
The best way to avoid overspending? Don’t visit the nearby mall on your way home. Although you’re just planning to pass by, it’s hard to look away at stores offering big discounts.
4. Use cash instead of credit cards.
Credit cards make it easy for you to spend money. Swipe the card and voila! you can take home that luxurious bag. But by the end of the month, you’ll realize that you just spent way over your budget. Instead of using credit cards, pay with your hard-earned cash to pay for the things you buy. By doing so, you’ll be more conscious of the amount you’re paying for.
5. Keep a list of things that you need to buy.
Lastly, learn to distinguish between your needs and wants. Make a list of things that you really need and a separate list of what you want. Keep the list of the things that you really need to buy at the moment. So when you’re out shopping and saw something that’s not on your checklist, don’t buy it.
Always ask yourself: “Do I really need that?”
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Nica loves books, writing, and photography. She likes to discover new dishes, places and try a lot of things. She dreams of having her own business but her grandest dream is to travel the world.