Learning to control your spending habit could be difficult, but it is possible; it only requires dedication and due diligence.
In recent times, particularly the outgoing year 2020 has been viewed as the year of the pandemic owing largely to the disruption caused by COVID-19 on businesses and livelihood globally. The majority of businesses and organizations have had to cut down their workforce or shut down completely. Some find it difficult to maintain previously agreed wages and salaries; some cut salaries or even suspend payment indefinitely.
As a result, the unemployment rate hit the rooftop, which also has reflected on the earnings of individuals with and without jobs. However, the need to master the art of saving has become necessary for survival, more so now that the Federal Government has predicted that the year 2021 would be difficult because of the effects of the spiked in the number of COVID-19 cases which possibly may lead to another lockdown of the economy.
Be that as it may, the first rule in mastering the art of saving is, Know Thy Self. This is where the famous saying, ”different strokes for different folks”, comes to play. An individual who earns ₦25,000 would have less spending power than one who makes ₦250,000, yet they could have similar needs and goals, but success is more plausible than the other. To correctly manage your funds, your budget must be tailored to suit your earnings.
It would help if you learned your spending triggers. What triggers your desire to spend irrationally? Could it be Anxiety? Boredom? Friends? Environment? Or is it the lifestyle you keep? This must be determined before progress can be made.
Understanding how these triggers reflect on your spending habits helps you to make better and wiser financial choices.
To have a better understanding of how you can control your spending, try incorporating the following steps:
Make A Budget
Occasionally draft a scale of preference, needs over wants, necessity over glam; this would help you ascertain your strengths and faults and ensure that better decisions are made when the money comes in. In making a budget, the spending should not outweigh the expected or possible income, putting into consideration money that should be set aside for emergency purposes and savings.
Track Your Spending
Ensure to keep track of the expenses made, about your daily, weekly, and monthly budget, to monitor your prudence level. This exercise helps you make better choices over time, as it reveals the unnecessary expenses incurred from spending on frivolities and helps you cut them out in future events.
Avoid the Pressure to Embark on A Spending Spree
Sometimes, our plans work out fine, and our income multiplies; these times, there is usually the urge to allow ourselves some of the pleasures we missed out on. Don’t oblige. Money is never too much to be invested. Do the research and seek successful business owners; more investment yields more income, while money wasted is hard work blown into the lion’s den.
Be Traditional, Stick to Cash
While carrying your money in credit or debit cards reduces weight and makes the transaction more comfortable, it’s an excellent spending risk as it often results in overspending. When shopping or paying for goods or services, be traditional, stick to cash. While spending and counting cash are stressful, compared to the many other modern options, it’s financially wise, as it helps the brain to monitor your spending.
With money, when the bundle’s size reduces, the mind becomes more cautious in making decisions to prevent debts and avoid being stranded, but with more digital means, spending is more fun, and in the world of finance, fun is costly.
Create Financial Goals for Yourself
Practice the act of creating financial goals for yourself frequently. The brain loves challenges, the task to mind creating more ways to multiply your income, rather than deplete it. It helps to focus on productive activities, which exclude unnecessary spending.
Save, Instead of Spending
This is self-explanatory, imbibe the habit of setting aside portions of your earnings for saving and possible investment. You should make sure that you don’t spend and invest later, instead, you should practice saving first and placing a budget on whatever is left.
Learning to control your spending habit could be difficult, but it is possible; it only requires dedication and due diligence. Spending is comfortable, but it doesn’t beat the joy of having more money.