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  • Writer's pictureAshutosh Singh

How to know if you are wasting money?

Updated: Oct 18, 2023


How to know if you are wasting money?

Examine if your hard-earned money is slipping through your fingers with these unmistakable indicators:

  1. Impulsive Purchases: Impulse buying, or making unplanned purchases without considering the consequences, is a habit that can lead to financial troubles like debt and overspending. People often resort to impulsive buying to cope with negative emotions like stress or boredom. To identify and manage impulsive buying tendencies, track your expenditures and pay attention to your emotions while shopping. Implement strategies like setting a budget and waiting 24 hours before finalizing a purchase. If you struggle with impulsive buying, seeking professional assistance is vital.

  2. Unused Subscriptions: Inspect your bank or credit card statements for recurring charges you don't recall signing up for or no longer use. Once identified, contact the respective company to cancel these subscriptions, many of which can be canceled online or over the phone. Be aware that some companies may impose a cancellation fee, so review the terms and conditions beforehand. To prevent forgetting about subscriptions in the future, create reminders to review your subscriptions periodically. Additionally, there are subscription tracking tools available to facilitate monitoring and cancellation of unnecessary subscriptions.

  3. The Impact of Lifestyle Choices on Your Finances: Recognize the correlation between your lifestyle choices and your spending patterns. Are you staying in unnecessarily lavish accommodations, frequently dining out, or indulging in extravagant spending? Do you have expensive hobbies or prefer comfort and luxury over mindful financial planning? If you answered "yes" to any of these, consider exploring more cost-effective alternatives.

  4. The Hazards of Emotional Spending: Retail therapy, using shopping to alleviate negative emotions, may offer temporary relief but can result in long-term financial difficulties. Some resort to retail therapy to boost self-esteem, while others employ it as an avoidance mechanism. Healthier alternatives include exercise, spending quality time with loved ones, or seeking guidance from a therapist. Reflect on the consequences of emotional spending and gift-giving on your finances, and favor thoughtful, budget-friendly alternatives. If these efforts prove ineffective, professional help may be needed.

  5. The Significance of Budgeting and Expense Tracking: Neglecting to establish a budget can lead to overspending, debt accumulation, and financial stress. A budget is a valuable tool for monitoring expenditures, saving money, and reaching financial objectives. Even seemingly minor expenses can accumulate over time, making comprehensive tracking essential. Utilize budgeting apps, spreadsheets, or notebooks to monitor expenses. Maintain realism regarding your income and expenses and remain adaptable with your budget.

  6. The Power of Delayed Gratification: Craving instant gratification often drives unnecessary spending. Delayed gratification, the ability to forgo immediate rewards for larger, future benefits, can be harnessed through setting financial goals, budgeting, and automating savings. Establishing financial objectives keeps you motivated to save. Goals can be short-term (e.g., saving for a vacation) or long-term (e.g., saving for retirement). Budgeting helps you analyze your income and expenses, highlighting areas for potential spending reduction. Automating your savings involves setting up regular transfers from your checking to your savings account, facilitating effortless saving.

  7. Rewarding Yourself: When you achieve a financial goal, consider rewarding yourself. This can maintain your motivation and keep you on track. An excellent way to do this is by investing in Blance. This approach ensures your money remains secure, allows withdrawals at any time, and offers a substantial discount upon goal completion, providing a gratifying sense of accomplishment.



 

It all starts with saving 💸💰

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