Today’s generation spends more time shopping and buying things they do not need. Many of my clients have teenagers, and one of their frustrations is that Amazon packages are being delivered to their doors at least three times a week or more. My generation went to the mall to purchase what we needed or wanted. We also had layaway (a purchasing method by which a person can place a deposit on an item they can pick up later and pay the balance). This taught us to save for what we want, not to buy things on credit, and to delay gratification. There are many reasons why this spending is more important, but this blog post is not about that. I want to equip you with the necessary tools and solutions if you or someone you know and love is experiencing issues with spending unnecessarily and struggling in this area.
- Find out why you are being irresponsible with your spending
Often, unresolved issues from your childhood, a bad breakup, a lack of knowledge when it comes to money, or not admitting that you have a problem can lead to unhealthy spending. Do the work and find out what your problem is and the root cause of the spending. Many local churches, community centers, and non-profit organizations have free resources to help people. Bet on YOU and spend the money to better yourself! The return on the investment is priceless.
- Automate all your bills and spending
Automation holds you accountable and leaves little room to spend money unnecessarily. Budget the following things:
- Eating out – set a limit, e.g. $200 a month, and use cash, not a credit card.
- Buying clothes – buy only when you need clothes. Set a yearly budget for how much you will spend. Put the money away each pay period to ensure that you have the funds to pay for the items.
- Travel – start planning in December for where you will travel to in the following year. Work out a budget for your trip(s).
- Set a budget for everything, e.g. gas, food, car expenses, kid’s clothing, savings, and paying off debt, to name a few.
- Cancel gym memberships and subscriptions
You will be amazed at how much people send on memberships and subscriptions. On average, Americans spend about $2,700 a year. If you are in debt, want to take a trip, or have money in your savings, cancel those memberships/subscriptions TODAY!
Try Rocket Money; it shows you how you are spending your money and cancels your subscriptions in one place and much more. Click here to learn more: https://www.rocketmoney.com/
Be aware, be informed!