How many of you go out for window shopping but end up spending a lot because you just had to have that dress or bag? For women, this could mean too many coffees, shoes, clothes, handbags, manicures/pedicures – the list can be endless. Our minds are so programmed to think that we feel good when we have new, shiny things!
Like alcohol, shopping/spending money can be therapeutic to some of us until the credit card bills arrive. And then we dislike ourselves.
It’s time for a change. They say that a little discipline can go a long way when it comes to spending. But it seems that a “little discipline” is not enough. You really need to go the extra mile with your efforts so you can really cut down on expenses that aren’t required. Here are my top five tips.
Tip No. 1: Minimise eating out
It’s a lot of fun to eat out with your family and friends but it can become very expensive. Limit eating out to once a week and choose to dine at home instead. Not only will you save money, you will also hone your skills in cooking. But the best benefit is the fact that you can plan healthy meals because you know exactly what goes into it.
Tip No. 2: Avoid Sales
When you see the word “Sale”, you tend to buy things that you don’t need. You think you have saved money but you can actually spend a lot of money on things that you don’t actually want. Why buy at a sale when you can get discounts through the year – all you need to do is look in the right place and you can always get a bargain, and not simply have to buy because there is a sale.
Tip No. 3: Pay your bills on time
Not paying your bills on time can cost a lot of money – $10 or so for every missed bill or not having enough money in your account can add up to a lot. If your excuse is that you are busy, then choose to pay via direct debits. Nowadays most providers encourage direct debits for bills because it saves them time following up on late payments. Sometimes you even get special discounts if you choose to pay through direct debits.
Tip No. 4: Address travel expenses
Isn’t it nice to drive to work so you don’t have to wait for the train or the bus and can choose to travel at your convenience? But when you add up the petrol station receipts, car rego and maintenance, it can add up to a lot – especially when you work in the CBD and have to pay for parking as well. Work out if using public transport will be cheaper and try to walk to work if you can. On the other hand, if using a car works out cheaper – make the most of it! An idea is to car pool.
Tip No. 5: Watch small daily expenses
Take a look at your everyday spending. How frequently do you spend on any of the below?
· Bottled water
· Coffee
· Cigarettes
· Alcohol
· Vending machine drinks and snacks
The trick is to be smart with what you need to spend on rather than what you think you want. We sometimes get into a habit because that is what everybody else does. We need to identify our own needs and take control of our spending habits – so that we can work towards saving for our retirement.