5 Money Spending Habits That You Should Ditch To Save More Money
“Around 65% Of People Have A Monthly Budget”
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Spending money is a part of life.
Ever since I’ve been little, it’s been a no brainer that when you had some money floated your way, you went out and spent it.
Now that I’m older and I have more knowledge of how the world and economy works, I can see that the economy runs on consumer spending.
Spending the money is what literally makes the world go round and round, and this is why I believe that the image of spending is so widely pushed to every individual from a young age.
But, as much as spending helps build and grow the economy, it’s also a big part of the day to day life.
You need food to live, money to pay for where you live, and you’ll need some way to pay for the luxuries that are available to make life better.
From what I’ve learned through my experiences making and managing money, from what I’ve seen from people around me is that there’s almost a kind of mindset and knowledge that goes along with having some jingle in your pocket.
From watching the people around me, I’ve concluded that there are two types of people out there when it comes to managing there spending.
The first type of people is good with they’re money. They don’t spend much and make sure they know where each dollar goes and prioritizes saving as much as they can.
The second type of person isn’t so great. They like to spend every penny they get on, on stuff that they don’t need while sometimes even spending more than they have.
As fun as being the type of person who spends all they’re money looks to be, being the person who saves and is smart with they’re with their money will prevail in the end.
So, here are the 5 money spending habits to ditch in order to be able to save more money.
1. Alcohol and Smoking
This isn’t the first time that I’ve mentioned this topic, and it’s for a good reason because like the economy is built on spending, I’d argue most of the population is built around drinking and smoking.
Drinking provides most people with a quick escape. A quick good feeling that’s job is to make them feel a bit better than they did before. It’s like a cycle, the more unhappy a person is the more alcohol comes as the saviour too clear the brain.
Smoking does around the same thing, but instead of flooding your kidneys with liquid, it fills your lungs with smoke.
They both serve the same purpose in life, which is to fill your brain with feel-good feelings so you can go on living the life that you’re unhappy with.
Although this is common, this doesn’t apply to everyone but from what I’ve experienced I can strongly say this is what happens in about 7 out of 10 times.
Besides the harmful effects both of these drugs have physically one your body, it also directly affects your brain.
When you use a substance to make your body and mind feel good, over time your brain will become more and more tolerant of the substances being in your body.
This will mean that over time they will begin to lose their effect and will require more to reach that level that you’re striving for.
It’s also no secret that alcohol and smoking are really expensive too. With more use, you need to obtain the feeling you want, the more you’re going to have to buy, making this one of the worst money spending habits that will drain your wallet completely.
Also, in my mind, it’s just a stupid purchase anyways. If I was given the choice of spending forty bucks on something, I would never spend that much on something that’s only with me for less than 24 hours.
2. Eating Out
I have mixed feelings about eating out. As awesome as it can be, and taste, it’s really the wolf in sheep’s clothing.
You’d think nothing of it as you go along through your day, stopping each time you feel hungry to pick up some food almost instantly, pay for it and continue on.
As this might not seem like such a dangerous deed, a simple google search will tell you otherwise.
As awesome as it is to pay a solid 8.99 for a burger at McDonald’s, the true price of that burger to make it a 1.25, that’s almost a 600% return on their money.
When I first came across the article that showed the true prices of stuff from McDonald’s, I was shocked. It a no brainer that businesses make money off of their stuff, but after seeing about what I was paying vs how much it was actually worth, I’ve vowed not to eat out anymore.
No matter what or where you go, most other restaurants have this same profitability margins, which is why they’re so successful and are the cash cows that they are.
While all these restaurants are racking in the dough, the rest of us are at the bottom of the totem pole paying 9 bucks for a burger and 4 bucks for a coffee that costs like 0.40 cents to make.
Eating out every once in a while is alright because sometimes it just isn’t avoidable, but if you’re looking to keep more of your cash, fixing this hole in your finances will do just that.
3. Stupid Purchases/ Impulse Buying
Quick storytime. When I was around grade 6, I had my heart set on buying a 60L outdoor Bear Grylls Backpack.
At the time, every younger kid goes through phases on where the look explore their different interests and passions, I was no different.
Living and growing up in the outdoors, camping was always the greatest activity that I thought anyone could do, so I armed myself with as much knowledge and tools that I thought I would need when I was out camping.
And the center of what I thought I needed, was this Bear Grylls 60L backpack. My only problem with this backpack that the Bear Grylls version was around two hundred and forty dollars on eBay.
Now that I’m older, I can see that there isn’t any difference between the Bear Grylls one and a standard on-off of Amazon, but I had my heart set on it.
I couldn't get a picture because of copyright, but this one is basically the same thing
And so, I began to save and save and save until I finally had enough money to buy it. Eventually, after some time I actually had enough and I went out and ordered the thing off of eBay.
When it got here, I was so pumped and I took off outside. Sadly, my enthusiasm lasted about three days. Since grade 6, I’ve used my backpack about as many times as I can count on my fingers.
I don’t really regret the purchase, because there have been times where I’m glad I have it, but there’s another reason I’m glad I bought it. I would rather have bought the two hundred and forty dollar backpack when I was little because I was so little I had the time to recover and learn from my past.
If I were to not have recognized and learned what I was doing, I could have been still impulse buying today when all the things are bigger and more expensive.
The moral of my story is to not let an urge to buy something that you don’t need to convince you into buying something. It’s ok to buy something for yourself, everyone, once in a while, but I find it’s better if I can find a reason to justify that buy, instead of just buying it because I want it.
Eventually, one day I’ll be able to buy whatever I want without fearing the repercussions but for now, killing the impulse buying mood is a major subject to ditching your spending habits.
4. Not Keeping Track Of What You Purchase
This one is fairly straight forward. If you’re wanting to spend less money, you have to know where every cent goes.
I’ve both heard and seen this one for like years, but I never started recording all my expenses until recently.
But now that I’ve started, I see why it’s recommended by so many people. When you record where everything goes, it gives you an idea of where you can either lessen your spending or just get rid of it altogether.
I find that recording your purchases also provides a secondary bonus. For me, I find that when I’m recording what I spend money on, seeing all the expenses and the money leaving my account it makes me more hesitant to spend anything more.
What I mean by this is that when your physically writing what and where your spending, you should hopefully feel a bit hesitant or even guilty by spending on dumb stuff.
I honestly didn’t even know how much I was spending on a month adds up on smaller purchases like a 6 dollar treat at the local McDonalds.
Once you’ve written how much you’ve spent down, you can see where you can cut your expenses which over time will be able to allow you to keep more of your hard-earned cash.
5. Not Having A Budget
The final spending habit ties a lot into number four. When you record and know where every dollar goes, the next step or part two to that concept is to then break up each one of those expenses that can’t be discontinued into certain sections or blocks.
Then, with the money, you earn each month you only spend what’s within the budget for that certain expense.
Budgets are great because after you’ve narrowed down where your money goes too, and after you’ve decided how much money goes to what each month, a sense of control will come over you.
When you decide how much money is being spent on a certain thing each month, you’ve created a plan for yourself.
That plan is yours to control, so essentially you can decide how much you the money you have leftover in the month instead of just buying everything willy nilly and hoping your card doesn’t get declined at any point.
When it comes to trying to save more money, your enemy will always be spending habits.
How I like to think of having money is kind of like a pool. When you fill that pool, you want to keep as much water in it as you can. Money is like the water in the pool and the pool represents your wallet or bank account.
You’re always going to want to have water in your pool, but sometimes that becomes extremely hard when the pool is full of holes. The holes then represent your expenses and the places you spend money.
You could be pumping tons of water into the pool, but that won’t matter if the holes are just as big. When you fix the holes (or your spending habits) then it doesn’t matter how much water you have coming in because you’ll get to keep it all.
I saw a quote once and it went like “A bunch of small leaks can sink a big ship”, and I believe that to be extremely true. Once you get your spending habits under control, you’re set for smooth sailing.
If you liked the article feel free to share it with your friends and family, as it would help me out a lot.
But until next time,