Life has hit everyone hard in one way or the other. I am sure everyone has had their own fair share of spending badly. With the kind of glamour we see here and there every single day especially on social media, I am dead-sure it has made it a lot easier for so many people to fall into the trap of bad spending.
With a consumer-driven society currently, it is far more easier to fall into the web of bad spending habits. It is thus very important to recognize that there are detrimental effects that poor financial decisions can bring to us.
Truth be told, there are endless temptations. Everyday, we see beautiful things that we get attracted to and sometimes buy those things. However, we can curb these impulse buying habits and that's what we shall discuss in this article.
There are some practical strategies that if we consciously practise, we can break free totally from indulging in bad spending habits. Thus giving us 100% control over our finances and achieve the long-term financial stability that we desire.
Here are some practical strategies:
Impulse Buying:
Over time, it has been discovered that one of the prevalent bad spending habits is impulse buying. Like I said earlier, there are beautiful things coming up every single day. The desire to purchase these things is what makes us spend so much. I fall into this category most of the times. In fact I did this yesterday.
On my way out, I saw this very beautiful footwear. Ordinarily, I wasn't suppose to purchase it because there was no need for it at all. But the desire to purchase this shiny footwear couldn't stop haunting me(yea it hunted me.LOL). So boom, I bought it, forgetting that I had kept the money for something else.
If we can implement the habit of thinking through before purchasing an item, it will help a lot to combat impulse buying. The best way is to take your time to evaluate the necessity of the item to be purchased. If it is something that aligns with your financial goals, then it is a YES otherwise, it is a big NO.
Budgeting Strategy:
If you want to fail financially, then do not budget. When you do not budget, you create room for financial disaster. We all need to have a plan for where and where our money goes into. This is why it is very important to differentiate your needs from your wants and prioritize what amount of money goes into what.
When you establish a budget, it helps you take control over your finances. This way, you are able to track your expenses and take absolute control over your financial goals.
Recently, I made a plan to help me have control over my finances. I created a budget every week and allocated some amount of money for expenses that are likely to come during the week. I partitioned them from my income, savings, expenses and some spendings.
I have also learnt that there is need to regularly review your budget to ensure that you are on the right track and also give room for adjustments when necessary.
Emotional Spending
Emotional spending is one way to wreck havoc on your finances. Sometimes, these kind of expenses may lift your spirits. For instance, spending when you are bored, or even celebrating or because of low self-esteem.
As someone who wants to curb bad financial spending, it is crucial that you recognize whatever triggers emotional spending and work on adjusting as soon as possible.
I know someone that was once too excited about his promotion at his office and ended up spending way too much. At the end of the day, he found himself in a terrible dilemma that it took him months before he went out of debt.
Here, I suggest that one needs to look for alternative ways to prevent oneself from engaging in emotional spending.
Relying on loans:
Using loans as a means to fund a lifestyle beyond your means of income is a dangerous habit that can lead to an overwhelming debt. Some of these loans offer comes with very high-interest rates. Minimize taking loans and ensure you pay off balances as much as you can.
This just explains that you should learn to manage your finances and try as much as you can to live within your means of income.
Keeping Up with current lifestyle:
One of the worse things that can happen to you is trying to live a life you see on TV. When you start comparing yourself with the lifestyle you see on social media, you expose yourself to unnecessary spendings.
This act leads to overspending and makes you live above your means of income. I read somewhere sometime ago that your happiness is not tied to material possessions.
Thus it is necessary that you focus on your values and prioritize your financial goals rather than looking at material validation.
Neglecting Savings and Investing:
When you neglect savings and investments, you pave way for financial downfall. If you want to have a long-term financial growth, then you need to consider prioritizing your savings and investments.
There are so many people that do not have savings not to talk of investments. They don't even think of emergencies that may arise at any point in time. You need to set aside a percentage of your income, no matter how little you can put in. Ensure that something enters your savings every time you get your paycheck.
I want to also state that before you consider investing in any business, ensure you consult with a professional financial advisor that will guide you. There are so many investment platforms but not all are genuine. So explore them but ensure you do your due-dilligence first.
Conclusion:
Breaking free from bad spending habits requires self-awareness, discipline, and commitment. By recognizing and addressing these bad spending habits, you can get control of your finances and open your way for a secure financial future.
Learn to embrace mindful spending, establish a budget, prioritize saving, and surround yourself with a strong supportive network that encourages responsible financial behavior. Remember that financial security is possible if only you apply the principles .
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