The world is at a standstill. Prices are getting higher and people are spending more. You get to enjoy your purchase while you’re earning money, but what happens when you reach retirement or you lose your job and your lifestyle suddenly becomes impossible to manage? It’s a grim future that no one wants to think about, and it’s easy to set it aside while you’re enjoying the temporary happiness brought on by your latest shopping spree. Never has irresponsibility been more fun.
Before you find yourself buried in debt, do these significant changes in your life:
Find Happiness in Small Changes
You may be longing for a grand renovation and you’re willing to spend your last cent just to make it happen. There’s nothing wrong with renovating if you have the means, but if you will be struggling financially, those brand new appliances will not be enough to tide you over. No matter how much you stare at your new furniture pieces, you will not be any richer.
Instead of doing grand changes that will set you back thousands of dollars, work with little changes that go a long way. That shimmer paint changes the look of your curtains just enough to get that positive feeling that comes with new surroundings, but it will certainly not cost you an arm and a leg. And you can use it in scrapbooking, too!
Consider Quality Over Quantity
Hundreds of cheap, mass produced clothes will take up too much space in your wardrobe but they do not guarantee that you will have something to wear for any occasion. The problem with fast fashion is they only make money if they churn out cheap clothes in huge quantities. You’re contributing to textile waste and you’re buying more frequently because your jeans, shirts, and bags only last a couple of months. This is all tied to the ever-changing world of fashion; staying current means buying whatever is on the rack in stores.
In the long run, those cheap but frequent purchases add up and you’re left with less money in your savings account. Choose higher quality goods instead, so that you can have long-lasting items that pay for themselves in the long run.
List Your Purchases
It’s time to look at how the phrase “out of sight, out of mind” influences your decisions. When you pay using your credit card, you don’t immediately feel how expensive your purchase is. This is why money experts recommend keeping your credit card use to a minimum and paying with cash instead. When you run out of cash, you’ll feel it and you will stop. In the same vein, when you don’t realize how much you bought on a particular day, you’re desensitized to the severity of your spending issue.
Jotting down everything you spent each day is a simple life hack that goes a long way. Itemize your lists so that you will know where each cent went. It’s okay to spend on a couple of luxuries per month, but with a list, you’ll easily see if you’ve gone overboard.
How much of your monthly income goes to unnecessary purchases? And don’t try to downplay the problem by saying you’re buying cheap items. When you look at the bigger picture, you’ll see how small purchases add up.