When it comes to spending, we often lose control on the amount of money that goes from our pocket. In a bid to lead a ‘good life’, we fail to analyze our month-end status. The alluring online sales, our uncontrollable urge to visit the local watering hold, the weekend travel plans with friends, all result in overspending. By the time we realize our mistake, our bank balance is practically zilch.
If you want to avoid getting into financial trouble by overspending or rather spending in the wrong places, you need to avoid the following seven mistakes so you can save money.
1. Reduce online shopping
We start our online shopping with the necessities, then get too excited with the offers flashing on the sites and end up buying stuff we don’t exactly need. The solution? It is better to visit your local store and buy the product there, to avoid getting lured by online shopping, which almost always ends up in compulsive buying.
2. Movie matters
One of the most popular ways to de-stress from our monotonous schedule is going out for movies on weekends. But it is a well-known fact that movie theatres are built to burn a hole in your wallet. It is safe to say that a movie for two will cost you nothing less than thousand bucks. The good way around? Wait for a month or so, all these so called blockbusters have a television premier within a month of release. Or better yet, get a Netflix subscription and watch world-class quality series and movies at home. This way you save money and also have an option to watch something else if you don’t like what you started, without losing your money.
3. Avoid buying products on EMI
The idea seems exhilarating, as we get to buy the products by paying a lesser amount initially. However, regular EMIs might get us in a difficult situation when we are in need of money for dire emergencies. EMI’s become an obligation, and you will be forced to pay through your nose. Instead, make it a rule to only buy things that you know you need and not what you fancy or want.
4. NO to personal loans
Unless it is a dire emergency, stay away from personal loans. A lot of people take up loans for trivial reasons, thinking that the EMI is ‘manageable’. What they don’t realise is they are just digging a deeper financial grave by getting caught in a circle of debt, which is vicious and never ending. Steer clear of these ‘attractive interest rates’ loans.
5. Stop using credit cards
Credit cards can be easily termed as an invitation to financial suicide. Most of us use credit cards for extravagance and luxury and then think of putting the payments on EMI. No need to explain how the vicious circle works. The mantra should be, if you can’t afford to buy something outright without putting it on your credit card, avoid it.
6. Avoid organizing grand parties
If you want to make occasions like “first birthday,” “first anniversary,” etc. a mandatory celebration, without burning a hole in your pocket, it is better to have an organized “not so grand” party. Celebrate with immediate family members and close friends who matter rather than having a big crowd in the party halls.
7. Dining bills
Take a quick look at your outgoing and you will realise that most of your money gets wasted in eating out. It does not mean that you shouldn’t have a good time, but there should be a limit on how much you want to spend on eating out. Keep a stipulated ‘eating out’ budget each month and the moment you reach it, stay put and cook at home and eat. You decide the budget on your income/expenses but ensure you stick to your eating out budget policy.
If you are conscious enough to follow the points mentioned above, overspending will be a thing of the past and saving won’t seem like an uphill task.
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