Spending Money Wisely Essaytyper

 

Joomla 1.5 Templates by Joomlashack

How to Spend Money Wisely
เขียนโดย Administrator   
วันเสาร์ที่ 28 กุมภาพันธ์ 2015 เวลา 07:28 น.

Do you hate it when you really need money, but your wallet is empty? No matter how little or how much money you have, spending it wisely is a good idea; it enables you to get the most bang for your buck. Follow these tips to reduce expenditures in key areas and adopt a safer overall approach to shopping.

 

 

Method 1 of 4: Spending Basics

1 Create a budget. Track your spending and income so you have an accurate picture of your financial situation. Save receipts or write down your purchases in a notebook as you make them. Review your bills each month and add those expenses to your budget.


          • Organize your purchases by category (food, clothing, entertainment, etc.). Categories with the highest monthly amounts (or monthly amounts you consider surprisingly high) may be good targets for saving money.


          • Once you've tracked your purchases for a while, create a monthly (or weekly) limit for each category. Make sure the total budget is smaller than your income for that period, with enough left over for savings if possible.

.


2 Plan your purchases in advance. Making spur of the moment decisions can balloon your expenditures. Write down what you need to buy while you're calm and at home.


  • Make a preliminary trip before you go on your real shopping trip. Note the prices of several alternatives at one or more stores. Return home without buying anything and decide which products to buy on your second, "real" expedition. The more focused you are and the less time you spend in the store, the less you'll spend.


          • If you are motivated to treat each purchase as an important decision, you will make better decisions.


          • Do not accept free samples or try something on just for fun. Even if you don't plan on purchasing it, the experience can convince you to make a decision now instead of considering it carefully in advance.

 


3 Avoid impulse purchases. If planning your purchases in advance is a good idea, buying something on the spur of the moment is a terrible one. Follow these tips to avoid making shopping decisions for the wrong reasons:


   • Don't browse store windows or shop for fun. If you're only buying something because you find the act of shopping fun, you'll likely end up spending too much on stuff you don't need.


          • Don't make purchasing decisions when your judgement is impaired. Alcohol, other drugs, or sleep deprivation can harm your ability to make sensible decisions. Even shopping while hungry or listening to loud music can be a bad idea if you don't stick to your shopping list.


4 Shop alone. Children, friends who love shopping, or even just a friend whose tastes you respect can influence you to spend extra money.


  • Do not take advice from store employees. If you need a question answered, politely listen to their response but ignore any advice on purchasing decisions. If they won't leave you alone, leave the store and return later to make your decision.

 

 


5 Pay in full and in cash. Credit and debit cards increase spending for two reasons: you have much more money available to spend than you normally would, and because no visible money is changing hands, it doesn't register as a "real" purchase. Similarly, running up a bar tab or using a delayed payment scheme makes it harder to realize how much you're actually spending.


    • Don't bring more cash with you than you need. If you don't have the extra money, you can't spend it. Similarly, withdraw your weekly budget from an ATM once a week rather than filling up your wallet whenever you run out.

 

 

6 Don't be fooled by marketing. Outside influences are a huge factor affecting what we spend our money on. Be vigilant and try to be aware of all the reasons you're drawn to a product.


• Don't buy something on the basis of an advertisement. Whether on television or the product's packaging, treat ads with skepticism. They are designed to encourage you to spend money and will not provide an accurate portrayal of your options.


           • Don't purchase something just because it's reduced price. Coupons and sales are great for products you were already planning to buy; purchasing something you don't need just because it's 50% off does not save money.


          • Be aware of pricing tricks. Translate that "$1.99" price into "$2". Judge the price of an item on its own merits, not because it's a "better deal" than another option by the same company. (By making the "worse deal" atrocious value, someone can trick you into paying more for add-ons you don't need).


7 Wait for sales and discounts. If you know you'll need a particular item but don't need it today, wait until it ends up in the bargain bin or try to find a coupon for it.


    • Only use a coupon or take advantage of a discount for an item you absolutely need or decided to buy before the discount occurred. The attraction of a cheaper price is an easy way to get customers to buy something they don't need.


          • Buy products only useful at particular times of year during the off season. A winter coat should be cheap during summer weather.


8 Do your research. Before making expensive purchases, go online or read consumer reports to find out how to get the most bang for the least buck. Find the product within your budget that will last longest and meet your needs best.


9 Take all the costs into account. You'll end up paying a lot more than the sticker price for many big-ticket items. Read all the fine print and add up the total amount before making your decision.


    • Don't be fooled by lower monthly payments. Calculate the total amount you'll spend (monthly payments x number of months until fully paid) to find out what the cheapest option is.


          • If you're taking out a loan, calculate how much total interest you'll have to pay.


10 Stay home. If you don't need to shop, don't go shopping simply because you are bored. Don't use shopping as a recreation or amusement. Find other amusements and hobbies, if it's lonely then invite people over or organize a group to play games together. Games are a good alternative to socialize and in roleplaying games, "Shopping" for equipment with pretend money won on quests can be more satisfying than real shopping.

 

 

11 Ask yourself some questions. Will I use this every day? Will I use it enough for it to be worth buying? How many hours did I have to work to pay for this? Employ the 3-month forecast. Ask yourself if you'll still be using the product regularly in 3 months. If you have lived this long without it, do you really need it? If you move frequently, contemplate whether this purchase is really worth hauling around each time you move. If you don't, ask yourself if it's worth sacrificing some of your precious living space to own it.

 

 


12 Avoid shopping malls, if possible. If you need to purchase something, go to a store that sells that thing. Don't automatically head for the mall, where you'll likely get lured into buying things you don't need. Also, mall stores tend to be high-priced since the rent is high for those spaces. If you go to the mall just to hang out with your friends, consider finding new hobbies, or new friends. If you have to walk through a shopping mall to get to a restaurant or a movie theater, keep yourself engrossed in conversation (either with yourself or your companions) so that you don't focus on your surroundings. Concentrate on where you are going, but pay no attention to the stores along the way.

 


13 Give yourself occasional, inexpensive treats. This may sound paradoxical (isn't this buying something you don't need?) but in fact, it's easier to maintain your spending goals if you give yourself the occasional reward. Try to go cold turkey on unnecessary spending and you may eventually "crack" and splurge much more than you should.


     • Set aside a very limited amount of money in your budget for these treats. The goal is to give yourself a small reward to keep your spirits up and prevent a giant splurge later.


          • If your usual methods of treating yourself are expensive, find cheaper alternatives. Take a bubble bath at home instead of going to the spa, or borrow a movie from the library instead of going to the theater.

 

          • Instead of renting movies, check your local library. Many libraries offer a wide selection of movies for free. While you're there, check out their other offerings, too. Remember, libraries are nice places to hang out in and reading is free.

 

 

 

Method 2 of 4: Spending on Clothing

 

1 Only purchase what you actually need. Go through your closet and see what you already have. Sell or give away anything you don’t wear or that doesn’t fit so you have a better idea of your situation.

   • Clearing out your closet is not an excuse to buy replacements. The goal is to find out what types of clothing you have enough of, and which you actually need more of.


2 Know when to spend more for quality. It's foolish to buy the priciest brand of socks, since those wear out quickly. However, spending more money on a pair of higher quality, longer lasting shoes may save you money in the long run.


    • Remember that price doesn't guarantee quality. Research what the longest lasting brands are rather than assume the most expensive option is best.


          • Similarly, wait until the item you need goes on sale when possible. Remember not to use sales an excuse to purchase items you don't require.

 

3 Shop at thrift stores. Some secondhand clothing shops carry surprisingly high quality items. At the very least, you should be able to purchase basic items for a fraction of brand new prices.


  • Thrift stores in more affluent neighborhoods usually receive higher-quality donations.

 

 


4 If you can't find it in a thrift store, buy cheap, generic brands. A designer logo does not indicate a higher quality.

 

 

 


Method 3 of 4: Spending on Food and Beverages

1 Compile a weekly menu and shopping list. Once you have an amount budgeted for food, write down in advance the exact meals you will eat and what you need to purchase at the grocery store to make them.


  • This will not only prevent you from making impulse buys at the grocery store, but also prevent wasting money due to food waste, a major expenditure for many people. If you find yourself throwing away food, reduce the size of your planned meals.


2 Learn tips for saving money on food. There are many ways to save money while grocery shopping, from buying food in bulk to knowing the times of day when various products are cheaper.

 

 

 

3 Minimize eating at restaurants. Eating out is much more expensive than preparing your own food, and should never be done as an impulse by someone who is trying to save money.


  • Pack a lunch at home instead and bring it with you to work or class.


          • Fill a water bottle using your tap at home instead of buying expensive bottled water.


          • Similarly, if you drink coffee frequently, buy a cheap French press and save money by preparing it at home.

Minimize eating at restaurants

 

 


Method 4 of 4: Saving Cash Wisely

1 Save Money. Making wise spending decisions goes hand in hand with saving. Budget as much as you can each month toward a savings account or other reliable, interest-accumulating investment. The more money you save each month, the better your overall financial health will be. Which is pretty much the point of spending money wisely, isn't it? Here are some savings ideas for you to consider:


• Establish an emergency fund.


          • Start a Roth IRA or a 401(k).


          • Avoid unnecessary fees.


          • Meal plan your meals for the week

 


2 Break free of expensive habits. Compulsive habits such as smoking, drinking, or gambling can easily consume any money you save. Eliminating them from your life is both a boon to your wallet and your health.

 

 

 

3 Don't buy what you don't need. If you're unsure about a particular purchase, ask yourself these questions. If you don't answer "yes" to all of them, that's a strong sign you shouldn't spend the money.


    • Will I use this item regularly? Make sure you'll drink all that milk before it goes bad, or that you have enough summer months left to wear that skirt more than a couple times.


          • Do I lack something that serves the same purpose? Beware specialized products whose role can be performed by basic items you already have. You probably don't need ultra-specialized kitchen equipment, or a special workout outfit when sweatpants and a T shirt will work just as well.


          • Will this item change my life for the better? This is a tricky question, but purchases that encourage "bad habits" or cause you to neglect important parts of your life should be avoided.


          • Will I miss this item if I don't buy it?


          • Will this item make me happy?


4 Prune your hobbies. If you have a gym membership and don’t use it, don’t renew it. Avid collector turned to lukewarm possessor? Sell it. Devote your finances and your energy only into areas you are truly passionate about.

 

 

Tips


  • Following a budget will be much easier if the entire household is committed.


          • Shop around regularly for utilities and insurance. Many services (phone, internet, cable or satellite, insurance, etc.) offer better deals for new customers to attract new business. If you keep moving between companies you can always stay on the cheaper plan. (Some phone companies will pay your old phone contract's early cancellation fee if you switch to them.)


          • When comparing two cars, calculate how much more you'll spend in gas money if you buy the less efficient (lower MPG) model.


          • Avoid dry-clean only clothing. Check the tags before you purchase any clothing. You don't want to repeatedly spend money on dry cleaning.

Source from Website :http://www.wikihow.com


แก้ไขล่าสุด ( วันศุกร์ที่ 27 มีนาคม 2015 เวลา 08:08 น. )
 

Take action today. Quick, little improvements can have a big impact over time. Improve your spending with these ten tips on how to spend money wisely:

Think High-Level: Make Lists

1. Make a list of what you value. The best way to spend more wisely is to align your spending with your values. Are you aware of your personal values? Take a moment to write down the things that are most important to you in life. Is it security for your family? Is it success in business? Is it helping others? You likely have a combination of values. Write these values down and then ask yourself this question: “am I spending my money on things I value?” Then ask, “am I spending my money on things that aren't in my value system?” Doing this little exercise will give you some clarity and help to guide you into thinking consciously about your spending.

2. Make a list of things you really enjoy. Along the same lines as #1, you should be using your money to bring joy to your life. You define what “joy” is. Go ahead and write that down. What brings you happiness? Identify those things and then ask yourself if you are spending your money in those areas. More importantly, ask yourself why you are spending on things that aren't on that list. Bottom line: avoid spending too much money on things that aren't at the top of your “joy” list.

3. Make a list of places, things, or people that cause you to make poor spending choices. Can you identify the triggers to poor spending in your life? Think about your spending over the past couple of weeks. When did you make the worst decisions (i.e. spending money you didn't have, spending on things you don't value, etc.)? What was the cause of your poor choice? If you can identify these weak points then you can begin to live your life in a way that helps to avoid some of these spending hot spots.

Quick Reviews of Your Actual Spending

4. Review your regular spending for things to eliminate. When was the last time you wrote down your list of monthly bills? Take a moment to do a thorough spending review now. List out all of your required spending for the month: this includes rent or mortgage, insurance, debt payments, utilities, services, etc. Is there anything on that list that you don't need or want? It sounds absurd to ask such a question. However, I'll be the first to admit that in the past there were things on my list of monthly expenses that I didn't need or want anymore. Odds are you have one or two yourself. If you find something to eliminate, do it.

5. Review your regular spending for things to reduce. Next, take a second look at that list of monthly bills and see if there is a way to reduce the cost of any of them. Could you call the provider and ask for a better rate? Could you call a competing provider to see if you can reduce your rates by switching? If it's a debt, could you do a balance transfer or consolidation that would help you reduce your rates and eliminate debt quicker?

Decide to Implement Spending Controls

6. Create a budget. On a basic level, a budget is simply a plan for your money. If you know your expected income next month, right that number down. Then start applying that money to different things. Start with taxes (if it isn't already taken out), giving, and savings. Then move to basic necessities: housing, food, insurance, utilities, transportation. Finally, apply the rest of your income to other things you need or want. Open up an account with an online budgeting tool to streamline this process.

7. Start writing down each purchase you make. Tracking brings awareness to any situation. Use your iPhone or other device to take spending notes throughout the day. There are Apps for that I'm sure. Or simply carry around an old school pad and pen to jot down your spending. Do this for a week and see if your spending improves.

8. Switch to only cash. If you have a severe problem with credit spending, this is the way to go. Some folks swear by this method even if they don't necessarily have trouble with credit cards. Like tracking your spending, going to a cash only system, if only for a week, will bring a heightened consciousness level to your spending.

9. Implement a “sleep on it” rule. Decide today that for any purchase over X amount you will “sleep on it.” It could be one night, a week, thirty days, whatever. Just allow some breathing room in between your desire and your decision to buy. Obviously this gives you time to evaluate the purchase against your values and your budget.

10. Put future spending on a calendar. Pull out a calendar and look at your upcoming events and life changes. Will spending be necessary? Is so, then make a note of that and start building a list of future spending requirements. This is somewhat different from a monthly budget because it looks a bit further out. This does two things: (1) allows you to prepare by saving for the spending requirement, and (2) it allows you time to shop around for the best price and lock in the lowest rates.

Have more tips? Add them to the comments below.

Last Edited: May 22, 2017 @ 1:49 pmThe content of ptmoney.com is for general information purposes only and does not constitute professional advice. Visitors to ptmoney.com should not act upon the content or information without first seeking appropriate professional advice. In accordance with the latest FTC guidelines, we declare that we have a financial relationship with every company mentioned on this site.

Join 38,500 subscribers improving their financial life.

Subscribe for free. Get my book (31 Days to Improve Your Financial Life), intro series, and article digest.

Success! Now check your email to confirm your subscription.

One thought on “Spending Money Wisely Essaytyper

Leave a Reply

Your email address will not be published. Required fields are marked *