We all rely very much on our own personal habits, both good and bad. And, when it comes to your finances, establishing smart spending habits is vital to long term financial security. In this blog, we have highlighted 5 tips to help you create better spending habits for yourself and your family. We encourage you to consider implementing these strategies and see how they work for you!
1. Use cash for in-store purchases
In today’s world, it’s probably fair to say that most people use the chip reader or swipe their card when making a purchase in-store. But, if you consider using cash for all your in-store purchases, you will be able to limit the amount you spend and avoid the temptation of overspending. This is a great budgeting tool that helps people look at their money as a more of a tangible asset rather than just as a swipe of your card.
2. Consider avoiding the brand names
This one might be difficult for those who are loyal to certain brands, but trying some of the off-brand options is a great way to save a little money. Who knows? Maybe you’ll come to like those products more. Either way, shying away from some of the bigger brand names will help you save a little now, while certainly adding up to big savings in the long run.
3. Shop with a list
Avoiding impulse purchases is one of the more difficult habits to break. We’ve all gone into a store with a set idea of the things we need to buy, but then you walk down the ice cream isle… it happens. But trying to establish the habit of strictly following a shopping list can help you create a positive spending habit of buying needs vs. wants.
4. Stop and think
With technology being a primary driver of spending in 2023, it’s easy to think of something you might want, go online, and buy it in a matter of seconds. Take a deep breath! Give it a day or two and think about how necessary the purchase might be. In a world where the buying process is super quick and the delivery is expected the next day, just take a moment to think about it.
5. Establish long-term goals
One of the easiest ways to curb impulse spending is by having long-term financial goals you can aim for that drive your daily financial decisions. If you can keep those long-term goals at the forefront when making daily purchases, you might have a better chance of eliminating bas spending habits. Whether you’re saving for your first home, a new car, or planning a dream vacation, we all have long-term goals that are important to us. Establishing smart spending habits now, will help you achieve those long-term goals in a timelier manner.
We hope you found these tips useful! Try implementing these in your daily shopping/spending and see how it works for you. Re-evaluate after a few weeks and see how much money you’ve saved. Once you’ve seen the results, you will be much more inclined to establish these practices as positive spending habits!