15 May 5 ways you are wasting money
I think it’s easier to waste money than to consciously be aware where our money is going. Being conscious of our money behaviours is much more difficult because it requires commitment and discipline. Below are 5 of the many ways people waste money without noticing:
1. Impulse purchases
Unless you are a 100% disciplined individual, we have all at one point or another been victim to our own impulses. Whether it is out of frustration, excitement or sheer boredom, we all have purchased items we are later not happy about. Avoid impulsive purchases with the following tip:
• Know your triggers – if you know the emotional triggers to your impulse purchasing, it is easier to recognise them and remind yourself to not go there!
• Sleep on it – if you must absolutely have it, sleep on it; c’mon that’s only a few hours later; you will probably feel differently the following day and an unnecessary purchase would have been avoided.
• Use hard cash – if you find yourself at the mall and are about to purchase an item, go to the ATM first then come back to pay for it with hard cash. It’s not as easy as just swiping plastic!
2. Online shopping
I must say, I am guilty of this. The amount of Instagram accounts I follow on my personal capacity that are clothing boutiques will make you blush!
Online shopping is just meant to make life easier and convenient, but I have found that it could fuel purchasing on impulse. It can also work out to be more expensive with all those shipping and courier costs. So just as above, sleep on it, don’t buy just because it looks cute on your insta feeds. If it wasn’t part of the budget, keep scrolling boo
3. Not automating your savings/investments
It’s easier to say you will transfer money into your savings or investments when you get paid but as soon as life happens or it’s cocktails time with your friends, you completely disregard your investments. Automation takes the ‘ I know I am disciplined’ equation out of it, you are certain you will be saving and investing every month rather than wasting money and wishing you hadn’t.
4. Not reviewing your insurance
Hubby and I did this exercise sometime late last year and boy did we save a couple of Rands! A couple of Rands might not sound like much but if you multiply that by 12 months, you realise that’s how much you could have either increased your investments by or put away for a holiday etc. Don’t be afraid to shop around or ask your existing insurer for lower rates …remember what Benjamin Franklin said “Beware of little expenses. A small leak will sink a great ship.”
5. Eating out/ entertainment
This is my worst weakness, I love eating out, but it can work out to be pretty expensive when you add it all up. A little lunch here with friends or colleagues, a latte here and there, some bottled water before your food arrives…it all adds up! Don’t get me wrong, I still do eat out but now I have a budget for it, so should you. Draw up your budget and stick to it. If you run through your entertainment budget half way through the month, just invite your friends over and cook, better yet buy cheap wine ( cause that’s all you can afford now!) and read a book.
This includes not packing your own lunch, you can save quite a bit if you packed your own lunch. It can also be a healthier option because you control what goes into your lunch.
Being money conscious is not easy, it is hard-work, but it can be done. Nothing good ever comes easy! Stay committed.