GET THE MOST OUT OF YOUR SPENDING


Many people have a simple money management plan: Get it, spend it. A better plan might be: Spend less than you make and get the most for your money.

Tips for better spending:

  1. Ask why. "Why do I want to buy this thing?" It's amazing how silly some of your purchases look when you ask that question.

  2. Count to 7. Live by the "7 over 7" rule: anytime you want to buy something that costs more than $7, wait seven days. This will blow a big hole in your impulse buying habits.

  3. Don't "save money" by spending it. Walk away when someone says a deal is "too good to pass up." You will always find a better deal; keeping your money in savings is a better deal. Don't let sales people - or friends - pressure you into making decisions "before it's too late." If you shop around, you'll usually find something as good or better, or discover you didn't need it after all.

  4. Hang around people who spend less. If the main activity of your group of friends is shopping or having new things, chances are you're going to spend more than you should.

  5. Write it down. Every time you spend money, write down what you bought and how much you paid. Buying something isn't as easy when you have to find your expense book and write down the transaction. Hold a contest with yourself to see how little money you can live on each week. Set goals, and reward yourself when you meet them. The reward should NOT be a purchase.

  6. Get some advisers. Invite two good friends with smart money habits to be your financial advisers. Whenever you want to spend more than a certain amount, present your idea to them and get their unanimous approval.

  7. Plan ahead. Each morning put in your wallet only the amount of money you know you'll need for that day's essentials. Keep the extra cash at home.

  8. Give yourself a bonus. There is no rule that says you must spend all the money in your SPEND account. Put excess cash into your savings account where its value will go up instead of down.

  9. Empty your pockets. At the end of each day, dump all your pocket change in a jar. Empty the jar every month and deposit the coins in the bank. It will add up to some real cash.

  10. Buy off a bad habit. If you smoke, eat the wrong food, or drink seven Cokes a day, give it up. Figure out how much you spend on your habit, then put that money in the bank.

  11. Make and keep a budget based on your priorities. It's easier to spend your money wisely when you know what's most important.

© 1997 vinebranch@hotmail.com

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