Generally, there are two dimensions of Money. Firstly you can earn money, and secondly, you spend money. But there is a third dimension also, and that is Spending Money Wisely.
In the present era, materialistic well-being is considered to be a major ingredient of happiness and to achieve that you invariably have to spend money.
But have you ever given a thought to spending your money wisely?
In fact, you can save more by spending money wisely.
Yes, spending money is a necessity as you cannot live without it, but spending your money wisely is one of the keys to making your today happy and tomorrow a happier one.
Here, we go on to show you how to spend money wisely so that you can save more, and lead a happy and fulfilled life.
Spending money wisely means that you are able to derive more value from your money.
100 Dollars can satisfy one of your needs, and 100 Dollars can also satisfy ten of your needs.
It all depends on how you spend your money.
But it is always better to get more value out of your money and so comes the importance of spending your money wisely.
In the present post, we bring you the need and ways of spending your money wisely so that you can have optimal utilization of this wonderful financial resource.
You will come to know how to manage money wisely.
In fact, spending money wisely is a skill and needs to be cultivated over a period of time.
Looking from another perspective, actually spending money wisely is nothing but saving money.
In reality, you can save more money by spending wisely than by any other way as there is no end to spending.
You have to spend a day in and day out.
So, by spending wisely, you get more chances of saving your money.
In a lifetime you can save much money by spending it wisely and can use this saved money for buying other stuff and resources.
Hence spend money, but spend it wisely.
Spending Money Wisely
The first step in learning to spend wisely begins from learning to control your mind.
Mostly we make purchases spontaneously for the things we believe we require.
In fact, this is not true.
You can enjoy a 1 Coke bottle, but usually, we buy two of it.
And this is purely spontaneous emerging out of your buying habits which are probably not in your control.
So, firstly we have to recognize the fact that we actually do not require all the things that we buy.
This is the first step in spending your money wisely.
So, before you buy a new set of clothes, gadgets or accessories do consider if you really require that much.
The second step in spending money wisely is to give yourself enough time before making any major purchases.
Learn to make smart purchasing decisions when it comes to major purchases involving a lot of money.
It is always better not to make hasty buying decisions. If you feel you can also consult with your family members, friends or some expert for that matter.
For example, you want to buy a car. This buying decision can be executed in haste when you buy a car just by seeing some attractive advertisement, or it can be executed after a proper research considering your budget and the options available to you.
The second way is more intelligent and would be recognized as spending your money wisely.
Major Purchases cannot be made time and again, so it is always better to buy out enough time and do proper research and analysis before finally buying the product or service.
The third step in spending wisely is buying day to day necessities or making bulk purchases through offers and discounts.
This segment of spending accounts a major portion of your monthly expenditure and with little effort in searching for the right offer in a shopping mall or over the World Wide Web can give you excellent results.
By this way, you are able to make all your purchases and still save your money left for future shopping or purchases.
“Buy Two Get One Free” is one of the popular means of making purchases through offers and deals.
Further, the second major drains of your monthly earnings are the bills that you have to pay out each month.
You should develop the habit of paying all your bills on time. Thus you can save money spent due to fine and other charges. So, on time bill payment is a way for spending money wisely.
There are numerous other ways that you can use for spending money wisely.
Let’s take a look at them:
Planning your Purchases in Advance
Your shopping should not be based out of spur-of-the-moment decisions. It can lead to ballooning up your expenditures.
In fact, you should first write down what you need to buy when you are at peace with yourself.
Consider taking a preliminary trip before you go on to make your real shopping trip.
Go on and note the prices of several alternatives at the stores.
You should not buy anything on your preliminary trip.
First, decide which products you need to buy on your “real” expedition.
It will enable you to remain focused and allow you to spend less time shopping. And you end up spending less and save money by spending wisely.
This can be a tough decision for many.
However, it can be a useful trick for spending money wisely.
In fact, when you shop alone, you do not get influenced by others. You get all the time to think, plan and make your buying decisions.
At times, your wife, children, or even friends, and other relatives have a profound effect on you when you go out to shop with them.
For instance, your child can spot an expensive gadget, game, or some toy. Now, it was not on your list.
You never planned for it. However, your child goes on cribbing for it. Finally, you have to make the purchase. It leads to unnecessary spending.
Likewise, your wife can spot an expensive dress.
And you don’t want to annoy her or spoil her mood. :)
So, you have to buy the dress for your wife.
All this was not required at all.
However, you have to spend money on it.
This can be avoided when you shop alone.
Pay in Cash
Shopping with debit or credit cards can lead to increased spending.
In fact, shopping with credit cards, you invariably end up spending more than you normally would have if you had done all the purchasing and shopping using only cash.
Moreover, people usually fall prey to delayed payment scheme. However, with all these schemes, you never actually realize how much money you would have spent.
So, it’s always a good idea to shop with cash.
With cash, you know how much you would spend on shopping.
You can plan your budget, write your items list, and make a purchase accordingly with cash.
When you do not have extra money, you cannot spend it.
It’s easy as that and helps in spending money wisely.
Wait for Sales and Discount
There’s no good in making hasty purchase decisions.
When you need a particular item, but don’t need it today, it’s always better to wait until it ends in a bargain bin.
So, it’s a good idea to wait for sales and discount.
It’s better to look for a coupon for an item to give yourself the gift of “discount.”
It allows you to save money by spending money wisely.
Minimize Dining out at Restaurants
Eating out at restaurants is an expensive affair especially when you want to spend money wisely and wish to save money.
It’s better to prepare your own food.
This way you can at least save $300 per month which itself is a good amount.
Always prefer to pack a lunch at home and bring it with you to work. Similarly, you should avoid using a packaged water bottle. Instead, fill a water bottle at home.
The above ways will contribute a lot in spending your money wisely. If you are able to practice the above methods, you would surely reap many benefits.
A quality life is what everybody desires and spending your money wisely certainly leads you to the path of satisfied, happy and glorious lifestyle.
This is all in this presentation. We hope that you would have found it immensely helpful. Please share your thoughts with us in the comments section below. We welcome your comments and suggestions.