HOW TO STOP WASTING MONEY
There are several ways you can deploy to stop your money spending problem. First, no one has a money spending problem. Spending money has never been an issue, the issue has always been the lack of enough money to spend. In your quest to stifle your bad spending habits remember also to focus on how to grow your income.
“If you would be wealthy, think of saving as well as getting.” —Benjamin Franklin
I will share with you some of the ways I think can help you on how to stop wasting money , I will also recommend some books that can be of great help.
First, you have realized you have a problem with the way you spend your money, by just acknowledging that you’re on your way to spending your money wisely. The first step to any recovery is acknowledging. You can’t solve a problem that you don’t acknowledge, and you can’t change what you worship.
You need to check what is triggering your spending. Here is the thing, human beings do things for two reasons;
- To avoid pain
- To gain pleasure
What are the pleasures are you gaining by spending money or what are some pains you are escaping by spending your money?
T.I.P (Techniques, Ideas, and Principles) To Get Your Spending Habit In Order.
1
You need to make spending your money on frivolous stuff painful as you can. Imagine yourself sleeping under the bridge on a cardboard box when you’re old, smelling shit, and wearing ragged clothes because you have no cash reserves to bail you out of the quagmire. Make it as painful as possible.
2
Spend less than you earn, and invest the difference. In The Art Of Money Getting: Golden Rules for Making Money by P. T. Barnum there is a quote that goes like this,
To have an annual income of twenty pounds per annum, and spend twenty pounds and sixpence, is to be the most miserable of men; whereas, to have an income of only twenty pounds, and spend but nineteen pounds and sixpence is to be the happiest of mortals.
3
Buy what you need only, and not what you want. So many people buy what they want and later go begging for what they need.
4
Don’t do the image issue; keeping up with the Joneses is stupid on steroids. You have nothing to prove to people. After all, when it is all said and done, you’re the one who will be sleeping under the bridge because you can’t afford shelter.
5
Have a budget. Budget is you telling your money where it should go, instead of you wondering where it went.
6
Read more about money, Learn how to make wise financial decisions.You can do this by reading financial books. You can’t grow above your level of knowledge. I recommend these financial books. Many people want to know about money but they never sit down and study. You must be a student of finances.
7
Learn how to save money. You can’t invest that which you don’t save. There are so many ways to be frugal. Some people just spend money like a drunken congressman or member of parliament. Be frugal. Frugality is not being cheap. Buy quality cheap has proven to be false economy.
8
Set some financial goals. People with no financial goals have plenty of money to spend since it is not allocated for any worthwhile use. Remember if you have no financial goals, then I guarantee you that there are so many people out here who have financial goals and one is to have your cash to fund their financial dreams.
Remember: Financial goals are the long-term, short-term and intermediate goals that form the basis of a holistic financial plan. The best financial goals align with your values and personal objectives. Not to be confused with a budget or financial plan, financial goals are specific and measurable milestones that, when reached, bring you closer to your ideal future.
Examples of financial includes; improving your financial literacy, creating a budget, saving for retirement, paying off debt, making more money, creating a passive income…et al
Set S.M.A.R.T goals
SMART goals are defined by the following characteristics:
- Specific
- Measurable
- Attainable
- Relevant
- Time-bound
9
Avoid your friends if they are spenders. People who hang out with spenders end being spenders. “You’re an average of 5 people you spend most of the time with.” Jim Rohn
10
Beware of little expenses; a small leak will sink a great ship.
The so-called little expense can accumulate to a huge chunk of money. This is what they call the Latte factor. Those small expenses add to be thousands of dollars. Track where you spend every dollar and you’ll realize small spending is not small as many call it.
11
Another way of how to stop wasting money is to track every dollar. This is how you know how much you’re wasting. Failure to track where money is going is one of the habits that has kept poor people poor.
12
Money=Life energy, this means any money you have you give a portion of your life away to get it. Whatever you get paid per hour is the cost or value of your life per hour. So anytime you buy an iPhone, that means you have traded a portion of your life for an iPhone. Maybe that iPhone is equal to 60 days of your life. You can read Your Life Or Your money, this book explains more on this.
13
Another tip on how to stop wasting money is to never buy that which you can do without. This is very important.
14
Rent your size, if you need prayer to pay your house it is probably not your size. The big chunk of income is spent on rent. It is therefore wise to spend as little as possible on rent. This is an area where people waste a lot of money. A house is not a museum for display, a moderate house will do the job for you and your family, it is also the best strategy on how to stop wasting money.
15
Shop smart and always negotiate your bills. Buy in bulk if possible this will save you a lot of money in the long run. Daily purchases are just ways to badly spend your time and money.
There are many ways on how to stop wasting money. Find time and research for more. You can read more on finance here.