The desire to save money comes out of concern for the future uncertainties. These situations arise when you least expect them to, causing a hindrance in meeting day-to-day needs. Hence, impulse saving becomes of utmost importance for people who naturally spend their money on unrealistic demands.
The differentiation between needs and demands are quite evident. Food, shelter and basic clothing form a part of our daily needs. On the contrary, electronics, appliances, extravagant wardrobe, lavish cars, etc., form a part of luxuries.
Why is it important to improve our spending habits?
Although the difference between a need and a demand is pretty clear, there are times when these lines get blurry. More often we are stuck in this loop of “living in the present,” or “saving for the future.”
Hence, improving spending habits will leave us with saving more than enough for our future and also provide us with a decent amount of money in hand to spend lavishly on ourselves. Please Checkout our blog to know about how to stop impulse buying.
Tips to improve spending habits in order to save money
Maintain a track record of your past transactions on monthly basis. This will allow you to know where you are spending more or less. This habit of recording your transactions will also enable you to cut down on your additional expenses and spend more on things that are really important. It will help with monthly comparisons and how you can carefully save and spend money.
Save first, spend later
If you lock your money the moment you receive it, there is a high chance of you not wanting to spend the rest since you need to run for an entire month. The moment you receive your pocket money or salary, make it a point to put it in your savings account.
Also, keeping it in the bank doesn’t necessarily imply the money is locked in. You can still make use of it through e-wallets or cards. Hence, opening fixed deposits or other safe form of investments will help you save better.
The 48-hour rule
The 48-hour rule talks about how you can trick your mind into thinking twice before making a purchase. Over here, if you ever feel like buying a product or making use of service, you need to wait for 48 hours before you swipe your card on it. If and only if you still feeling like buying that product, you can go ahead with it. Generally, this practice helps you think twice before abruptly having the urge to make payment.
There is extreme level of pain involved when money goes out of an individual’s pocket in the form of cash. The similar kind of awareness doesn’t occur when you pay through debit/credit cards, online portals or net-banking facilities. Hence, cash payments help you have that control over your wallet.
Spending and pampering on a weekend or an occasion is what anybody would want to have over locking the earned money to safeguard one’s uncertain future. Such a dilemma of tomorrow to be favorable or not can make you to spend heavily on the present than the future. If you don’t plan your budget well in advance, there is a high chance you will be left will minimal or no amount in hand by the end of the month. Such a situation can cause hindrances for you and also the people dependent on you.
Make use of applications that will help make you think twice before making a purchase.
Install Doctor Money App Doctor Money is an online app enabling users to stop from being an impulse buyer and encourage into being an impulse saver. This app asks the user to think twice before spending on a particular item.