How To Spend Money Wisely And Track Your Purchases

You don’t think twice about brushing your hair before you go out of the house, or checking both sides of the road before crossing, right? These are habits built through years of practice, plus the good sense of knowing what will happen if you don’t do it.

Financial habits are the same. If you know can learn how to spend money wisely and track your purchases, and then practice this every day, it will become second nature to you. You will always feel in control of your daily finances and will be prepared to take on bigger financial goals like saving for retirement.

The best financial habits are simple and easy to follow. Do this every day and build a strong foundation for success.

Financial Habits To Start Implementing

Make A Budget, And Stick To It

It sounds really boring and tedious to start a budget, list down expenses, and add them up. But this is the most basic skill for financial management. You need to be able to set limits and stay within them. Just like the habit of checking the road before you cross, a budget lets you know when it’s “safe” to stop, go, or slow down.

When you first learn how to make a budget, it’s best to keep it simple and accessible. Making a complicated Excel sheet with several subcategories that you rarely check is far less effective than a record you keep at your fingertips—like a pocket notebook or an app.

Start with basic spending categories, like bills, utilities, and groceries. Later on, as you get the hang of it, you can add saving for long-term financial goals like a vacation or a new computer.

Differentiate Needs, Wants, And Impulses

You may need a new phone because your old one broke down, you may want one because you really like the features of a new model, or you may have simply walked into a store looking for something else—then got mesmerized by the display.

When you feel tempted to buy something, ask yourself: do I need this, want this, or is this really an impulse buy that is driven by emotions? This can help you learn how to spend money according to your priorities rather than your moods.

Give Yourself A Personal Allowance

It’s not realistic to deprive yourself of simple rewards and pleasures. Your budget should also include money you spend on yourself, such as buying a book or enjoying a date. The key to learning how to spend money is to anticipate and control these expenses, instead of going on impulse buys.

 

Calculate how much you can afford to allot for your personal allowance. If the budget is tight, don’t give up: think of creative ways to spend less money. For example, instead of going out for dinner, you can buy a good bottle of wine and cook your favorite dish at home. Instead of buying a brand-new bag, shop for a beautiful pre-loved item.

Always Compare Prices And Deals

One of the key skills in knowing how to spend money is learning where to get the best deals and bargaining for a better offer.

• Before you buy anything, check different store prices. Don’t just fall for big promos like “70% off” Some stores will intentionally increase prices so they can claim to have a bigger discount. You can also ask a store if they can match the lowest price.
• Cheaper isn’t always better. Sometimes it’s worth paying more for a durable product or more responsive customer service. Read customer reviews from forums and other websites—not just the ones that are on their product brochure.
• Read the fine print. Does the price include taxes and shipping? Do they offer a warranty?
• Buy at the right time. Look for end-of-season sales, anniversary sales, or special holiday offers. If you often buy from a particular brand or store, follow them on social media to know of any promos.  

Have Financial Goals and Savings Plans

It’s important to be mindful of the future. Take some time to sit down and think about some long-term financial goals that are important to you. Do you want to save money to start a business, or save for your child’s college tuition? How much do you need for your retirement?

Set up a bank account for these long-term financial goals and aim to set aside a little each month for them. You can even arrange for some of your salary to be automatically transferred every month.

Have An Emergency Plan

Financial emergencies can happen to anyone. Ideally, your expenses can be covered by insurance or your savings. But you still need to have a plan B. Do you know where you can raise money quickly if your emergency fund is not enough? Will you be able to get the money in one or two days?

One option is to take out an installment loan online. Through Missouri Title Loans, Inc. you can borrow up to $1,500. The only requirements are a driver’s license or valid state I.D., a checking account statement that’s in your name, and proof of income like a recent pay stub.

An installment loan online is very easy to apply for. Just fill out the online form, and a representative from the nearest branch will call, explain the process, and answer questions. When you’re ready, go to the store and then complete the final forms—you’ll be done in less than 30 minutes!

Contact us to find out more about how to get an installment loan online, and other loan packages that we have to help you cover how to spend money for emergency expenses.

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.