Harleen Kaur
Money plays a crucial role in our life and spending too much of it can leave us in a debt trap. We all tend to waste money knowingly or unknowingly by one way or the other. Small wastes eventually add up to become a huge amount, if not controlled in time.
So, it is advisable to manage your finances at the right time and stop wasting your hard earned money wherever possible.
“Beware of little expenses ; a small leak will sink a great ship” – Benjamin Franklin.
If you stop wasting your money right now and start focusing on saving and further investing your money, you can protect yourself from financial hassles later on.
You don’t have to put in hours of laborious work to do so, just following few simple and useful steps will serve the purpose.
So, here we shall be highlighting 4 easy ways to stop wasting your money and manage it in the best possible manner.
Learn to Prioritize
Prioritizing important things is the first and foremost way to avoid any waste of money. You need to differentiate between necessities and luxuries. Look for purchases that can be postponed and are not needed at the moment.
If you feel, most of your money is going in housing bills, immediately try to reduce that. If you feel you are spending too much on eating out or travelling, try to control that. Look for ways you can enjoy without breaking the bank.
Important tip : Set your financial goals well in advance in order to avoid any excess wastage of money on unnecessary items.
Budgeting on the go
Setting a fixed budget for yourself is indeed a great and practical way to cut off your monthly expenditures. You know your family earnings, what you need to do is to track your expenses as well. Put aside a fixed monthly amount for various household expenses, rent, car expenses, loan EMIs etc. Identify how and where you spend most of your money.
Record your expenses on an ongoing basis and cut off as and where required. Your spending should not exceed the limits and the budget set by you.
Important tip : Sticking to a fixed budget might seem difficult, so adding a bit of flexibility is fine.
Turn off your temptations
Don’t get overwhelmed looking at huge discounts and sale offers. People tend to get carried away and resort to impulsive buying. This leads to purchase of some extra stuff that is of no use. So, buy what you actually need and not to fulfil your other psychological needs like relief from boredom, to show off to your friends etc.
This wastage of money on over shopping can be avoided by simply controlling your emotions and keeping yourself away from those seemingly amazing deals and bargains.
Important Tip : Make smart spending decisions and you will end up saving a lot.
Live within your means
Learn to live within your means because if you ignore this important factor, you might land yourself in financial troubles. Let your finances rule your lifestyle and not the other way round. Do a self-assessment exercise and ask yourself : What is the best lifestyle I can afford with my earnings ? Restrict yourself to spend within your means and not beyond that.
Important Tip : Try adding to your passive income or engage in a side-hustle to boost your income.
You don’t have to sacrifice anything. Just learn to manage your money in a planned way that will guide you to easily achieve your financial goals aligned with your personal goals.
If you follow all or any of these not so magical but fruitful ways, you will definitely be on the right path of saving more and spending less. You are likely to deviate a little bit, but don’t lose focus, avoid wasting, start saving and investing your money.
Do you have any other ideas to stop wasting your money and add on to your savings ? If so, please feel free to share the same with us.
