This is the first question you should ask yourself because what you spend money on is indicative of how you can manage your finances effectively. Some people spend lavishly, like buying clothes, jewelry or paying for expensive hobbies. You need to understand what you are spending and create a plan for keeping your finances balanced.
Find out if you are addicted to spending
Shopping and spending addicts are people who love the thrill of buying things and shopping often. If you think you have a constant need to buy things, then you may have a problem with spending and this is something that needs to be controlled.
Track your daily expenses
It is important to keep track of your daily expenses. For example, take a notebook and write down your daily expenses for everything you bought. You have to save everything from your transportation costs, food, coffee, etc. Your daily expenses will show you the trend of your shopping experience and on this basis you will easily understand what you should limit yourself to. If you go out to lunch at a nearby restaurant every day and pay 4-5 lv for food, then you can start bringing home food. Reduce the number of coffees you drink outside.
What is your financial role in your relationship
Being tied up, whether you are a saver or a washer, can affect your attitude. If you like to spend, you probably want to go out often, buy new things, and you can do this without consulting your partner. Try to live within your means so as not to ruin your relationship with your partner.
Pay cash mainly
Studies show that it’s easier to spend money on a credit card because we don’t see the money being spent. Better withdraw money and buy cash instead of emptying your credit card. When giving money by hand, it’s easier to convince yourself that you need to cut costs. By using cash more often, you hold yourself accountable for your expenses. It’s harder to lose control when you have money physically in your wallet.
Don’t be tempted to buy things for friends too often
We all know how history goes on. You are at the bar and it is your turn to buy drinks for all your friends. If you are a person who loves to spend, this is the kiss of death, because it only encourages you to spend more money. Although you have good intentions for people with whom you spend a lot of time together, it can make you spend even more to maintain your social connections. Instead, if you draw on your friends often, do it less often, and save it as a fun expense. You can also spend time with your friends without spending money.
If spending money is your go-to and regularly breaking your cash register to meet your consumer needs, you need to learn how to manage your finances without getting lost. Good Finance is a quick solution to financial problems. If you find yourself in a situation where you need little financial support, ask for a first interest-free loan from Feratum. Learn more here.