There are many out there reaching adulthood today that don’t know how to spend their money wisely. This might be due to lack of education on how to spend, budget, or save. Some feel they’re entitled to things they cannot afford, and they resent their parents’ scrimping and saving because it meant they never had anything new ever. Most young adults today are okay with going into debt to get the things they want. Unfortunately, this habit can cause a lot of stress and a lot of financial ruin. Here is some advice we think would help those struggling with their bad spending habits.
Planning Your Spending
This will take some time as it requires adjustment. Before the start of a week, plan what food you need to buy for your meals and set aside money for that. Think of the money you’ll need to spend on monthly bills and other expenses like haircuts or gas for your motorbike or car. Set aside extra money for emergency spending like car breakdowns. Planning your weekly, monthly, and yearly expenses will help you get an idea of how much money you’ll need which means you don’t need to spend over those amounts set aside. Having a certified accountant or bookkeeper like www.ezyaccountsbookkeeping.com.au/bookkeeping-adelaide can help immensely with financial planning to get you on the right track.
Pay with only the cash you have set aside for certain expenses. For example, if for one grocery run you only have $50 set aside, only spend that much and no more. Put back the things that make you go over your budget. The physicality of handing over the cash will help you to also recognize how much money you’re spending and will make you more prone to tighten the reins on your spending.
Cutting Out Unnecessary Spending
For some people, spending money shopping is like therapy for their stress; meanwhile, their overspending causes more stress when they see their credit card bills and the creditors calling for their money back. It’s a horrible cycle. It’s important to find the triggers for wasteful spending and counteract it with activities that don’t cost anything like going for a walk in a park or exercising.
Try to fix things that have broken so that you won’t have to buy new all the time. It usually costs a lot less to fix items that are damaged rather than getting a brand-new item every time something breaks. This can be applied to clothes, electronics, and appliances.
Another area where people spend unnecessarily is in food. A lot of food spoils in people’s fridges because they haven’t been eaten. If you feel that you throw out a lot of spoiled food from your home, it’s time to rethink your food strategy. Buy only what you’ll need for two or three days so that the food won’t be sitting in your fridge for a long time. You’ll find you’ll be eating fresh food and you won’t be throwing away things that have spoiled. If you live far from the market or grocery store, buy ingredients to make big batches of food so that you can cook big batches at the beginning of the week to store for the few days you need it and the rest you can freeze it so it won’t spoil.
Growing Your Own Food
Spending on seeds is a wise investment. Seeds cost very little when compared to buying the actual vegetables every week in the market. You can also save the seeds from the vegetables you eat like pepper seeds, tomato seeds, and pumpkin seeds. That way you don’t have to buy seeds. Just wash, rinse, and dry the seeds before starting the seedlings. You can check with many online sources like Pinterest for advice on how to grow certain vegetables successfully.
When You Must Buy New
Sometimes you need to buy certain things for work like a computer or laptop. Electronics are usually better to buy brand new with a warranty than buying a used one. Usually used or refurbished electronics have had problems previously and will continue to have problems. Fixing them again will cost just as much as what you could have bought a new one for. For certain things like electronics, it’s usually best to buy brand new unless you know the previous owner and the owner is just selling it not because there was a problem with it and it was refurbished but because they’re not using it.
It’s important when buying other items that are necessary to invest in pieces that hold or increase their value over time. If you must resell it, then you can sell it at a good price. Some car brands lose their value more than others when taken off the lot. Do your research and see what cars have a great resale value in your area.
If you have extra money that you’re not afraid to lose, you might want to invest it in a high returns investment but do your own research to be sure it’s not too risky for you. You can also check with local banks and compare which savings accounts have the highest rate of return and invest your money there.
Millionaires don’t just have big hearts, they’re smart because charitable donations mean large tax breaks for them. You too can get tax breaks if you regularly donate to charities and the tax laws of your country allow you to get refunds back for those. Just save the receipts you received from that legally recognized charity.
Based in Brisbane, Glori writes about general topics specializing in personal finance and technology. She grew up in Canada and now is traveling the world having a close look at how other nations spend their money and time. She graduated from the Northern Alberta Institute of Technology and now has turned to writing to help others spend their money wisely.Read more