6 Steps To Spending Your Money Wisely

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How do you spend your money?

Do you spend it on impulse or you think things through first?

Do you use cash or credit card?

Anyway, regardless of how you decide to spend it, I believe though it's important that you spend your hard earned money wisely. Why? It's because you worked hard for it. You poured in your time and energy to earn it, so it's only fitting you spend it wisely.

I'd like to share something that I read more than a year ago. It's an article that mentions 6 steps to becoming a wise spender. It's a great article that, I believe, doesn't have an expiration, so the steps written there can still be applied even today.

Here are the 6 steps:

1. Buy for quality, not cost - Cheaper doesn't necessarily mean better. The author states that in buying something always go for quality than lower price, this will save you money in the long term as a quality product lasts longer than a cheaper one.
2. Keep detailed track of your expenses - Know where you spend your money. The author states that keeping track of your expenses is key to understanding on how you can spend wisely and minimize expenses.
3. Find alternatives - Look for cheaper but also better options. The author said that once you have a list of your expenses, take a look at it and see where you can cut your cost by finding alternatives for a particular activity or item that you spent on. Like instead of going out on a date, try having a romantic dinner at home instead.
4. Become less dependent on credit - Cash is still king. Using credit card requires discipline that most people doesn't have. The author said that unless you are 100% on top of your finances, its best that you use cash instead of credit cards.
5. Do your research - Don't instantly buy something that you like that you saw at a store. The author states that do a research first, canvass the item you want at a different store, you might get it a cheaper price from a different store.
6. Wait it out - Don't give in to impulse. The author says that we're all usually guilty of purchasing something because of impulse. So instead of giving in, wait it out for a few days, the urge to buy might be gone, or you might get the item on sale.

These tips are really useful to follow if you want to be a wise spender. But like in any advice that comes our way, the decision is still up to you. Unless you decide that you want to be a wise spender, no amount of tip or advice will be able to help you.

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