It’s not your salary that makes you rich, it’s your spending habits – Charles A. Jaffe. No matter how much you earn, your spending habits can either make or unmake you. Can you tell how much you spent last week and what you spent on? Bad spending habits can lead to debts, that’s why you need a spending plan, also known as a budget. Always track your expenses so you don’t spend outside your budget.
Below are three (3) spending habits you need to break;
- Impulse Buying – Impulse buying is purchasing items you didn’t plan to buy. When you write a shopping list, try as much as possible to stick to it, else you may end up buying things you do not need. Many of us have bought items we’ve never used e.g. clothes, shoes, gadgets, utensils etc., we probably bought them because their prices were discounted, or because they were the trend at the time. Make it a habit of always writing a shopping list to avoid impulse purchases.
- Hangouts – Have you paused for a second to think about how much you spend on those random Friday night hangouts? whether it’s an occasional hangout for a drink or a meal, be sure to include it in your budget. Learn to say no to invitations for hangouts if you haven’t budgeted for them, unless its free of course! Even if it’s free, you will probably have to transport yourself to the venue and that’s your cost. Those costs we think are insignificant distort our finances in the long term.
- Memberships & Subscriptions – those DSTV and Netflix subscriptions you pay for monthly, how many hours do you spend watching them on the average? What of the gym membership you paid for? How many times have you visited the gym since you paid? Although some subscriptions and memberships could be as low as GHs10 monthly, have you calculated how much they cost in total annually? Cancelling subscriptions and memberships we barely use or don’t use at all can save us some money, no matter how small!
Spending less means more money to save and invest. Every detail of your finances should be planned and properly tracked.