Smart Spending Tips

“The saving man becomes the free man.” – Chinese Proverb

Let’s continue to get wiser by looking at some smart spending tips; that means when we spend we’re also saving. For us to survive, spending is necessary; for us to live and enjoy life, spending is necessary. We all spend money on different things, in different ways and for different reasons. All the more reason we should pay careful attention at how we’re spending our money. So let’s get straight to it with a few tips:

1. Don’t buy on impulse

God designed our eyes to appreciate beauty. But what happens when that object of beauty moves from appreciation to a burning desire to have it? What happens when that object resides on an expensive shop shelf? Retailers are far smarter than you could ever imagine. Their million dollar advertising campaigns are designed to visually entice and catch your emotions. Don’t fall for it. If you know this is your weakness, leave your store and credit cards at home (or get rid of them). Shop with a list and only bring the cash you need. Rather than buy it now, sleep on it and see how you feel in the next day or two.

2. Cut down your credit cards and loans

The interest on a typical credit card today has an average annual percentage rate of between 15 to 20%. Other higher interest cards may go up to 30%. Compare that to the mortgage on a house which hovers around the 5% mark. My advice – reduce the use, or even better stop using your credit cards all together. The problem with credit cards is that the credit is so easy to get but often a tremendous burden to pay back. Focus on paying back first the loans or credit cards with the highest interest.

3. Stick to your budget

We looked at this last week. I know that this can be a hard task but sticking to your budget is one of the best ways to stay out of debt and in control of your money. You don’t need to have your budget with you all the time, but by keeping a good idea of what it is in your mind, you can go out shopping and have a feel of where you are when you’re buying your products.

4. Spend on your savings

Savings and investments are usually one of the last things people consider when spending money. Usually all the bills and other demands are paid first and then when it comes to save there isn’t anything left. One of the first things you should spend your money on is your savings. One minister has personal commitment as to how he spends the first 30% of his income; he gives 10% back to the church, saves 10% and spends 10% on himself – the rest of it he spends on the demands of life!

5. Spend less on eating out

Another good way to save money is to spend less on eating out. Restaurants, take aways and fast food lunches can siphon out those coins. Take the time to prepare a packed lunch or even consider becoming a master chef! Not only will you save money but you’ll also have more control over the healthier options.

God bless and protect
Chidi

www.thetotalman.com

Quote of the week:
“Money can't buy happiness, but neither can poverty.” - Leo Rosten

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