How you use your hard-earned money to pay for goods and/or services is called spending habit. It is also about how much you spend on your needs and wants in life. If you start spending your money on things that do not necessarily help your life to be better or to those that don’t really generate income, spending habits become bad. Bad spending habits hinder our capability to save. Check out some of the tips on how to eliminate those unhealthy spending habits in your life which can help you save more.
Avoid buying a lot of bottled water.
Most people who are always on the go get into that habit of buying bottled water for convenience. In fact, this is not a convenient lifestyle because you are wasting your money and you are adding harm to the environment. Experts have proven that if you bring your own tumbler every day for water that is as healthy and safe as bottled water that is bought, you can save around $1,000 per year. You can use the amount you save for other things that are of better importance or put that into your emergency funds or use the money to plan for your retirement.
Think before buying branded products
Most advertising conditions our mind to patronage brand-name products without even thinking. Why not try buying generic and store brand items, especially those locally made? You’ll find out that there are unbranded products which have the same quality as the branded ones but with a lower price. Typically, the price is 10 – 20% lower than the branded products. Any amount you save can be added to your savings.
Avoid penalties and late fees.
Penalties for late payments are regulated by consumer protection. It limits how much lending institutions and banks can penalize the default borrower, but studies revealed that Americans still pay billions of dollars every year. It only means that they are not managing their finances efficiently.
To avoid penalties and late fees, use automatic payment or deduction plan to pay for your monthly bills. By doing this, you can also be sure the bills are always paid on time or in advance. If you want to finish your obligations faster, you can pay double per month if the biller would allow.
Avoid lottery tickets.
Some people put their life on mere luck, especially nowadays when there is an ongoing global crisis. They believe that games of luck such as the lottery can bring them the financial stability they need. But the truth is they are just spending a lot on something that isn’t real. The lottery is ok if you spend only a very little amount of money occasionally, say once a month only. What they say is true: that you’re more likely to be killed in a car accident than hit the jackpot. Better stay home, save or invest your money, and you will see that your money grows even without luck.
There are a lot of bad or unhealthy spending habits that we must eliminate in our life for us to be able to take control of our finances and save more for the future. Eliminating one habit at a time can make a big difference in your financial journey.