You perhaps hear it all the time that you should learn how to spend your money more wisely, whether it’s on a small business day-time show or if it makes for the backdrop of a news piece covering the toughening economic climate. But what exactly does it mean to spend more wisely? What are the exact actions taken by someone who can be said to be a wise spender?
Learning how to spend more wisely can be broken down into three actionable steps, namely assessing the necessity of spending, finding the best deal possible and effecting the cheapest way of spending possible.
Assessing the Need to Spend
It requires a sustained effort for it to become a habit, but once it does become a habit then it’ll be more like second-nature to you and the outcome of it will all be worth it in the end. That’s making a commitment to take the time to think about each and every spending decision you make – every last one of them.
Even if you’re just doing some last-minute shopping for a dinner you only just planned, take the time to think about what you’re spending your money on and ask yourself whether or not it’s really necessary. Look, sometimes a bar of chocolate is all you need to give you a much-needed energy boost or to lighten up your mood, so yes, something like a chocolate bar would sometimes legitimately pass off as a spending necessity.
This is not a lesson in making healthier choices or depriving yourself of some of the pleasures you work hard to be able to enjoy, so it’s simply a matter of necessitating the spending at that particular moment in time. Going back to the chocolate bar example; say you’re on your way to the office and you have a stash of chocolates in one of your office drawers. In this instance, it’s definitely not necessary to spend some money on a chocolate bar while in transit. Wait until you get to the office.
Finding the Best Deal
This is as simple as weighing up the options so as to get the best value out of the money you spend. Can you walk a block or two and get what you want to buy cheaper, for instance? If you’re going to be buying more than once, is it perhaps better to get a better deal buying in bulk? Bargain hunting can be quite a lot of fun, but more importantly, it teaches you how to get the most value out of every penny you spend.
The Cheapest Way to Spend
Believe it or not, but the very action of money changing hands costs money itself. This is why it’s important to learn to use the cheapest way of spending, always, like paying with your bank card when buying goods instead of being slapped with cash withdrawal fees. You can even buy more wholesome, fresh foods from small, local suppliers instead of having to foot the bill for VAT, transportation and other costs factored into some goods which are sourced from far and wide.