The goal for a lot of people is to keep stocking money away through the years so you can be set in retirement. Saving is great, but you’re going to have to spend some money along the way too. If you don’t spend your money wisely then you might be taking away tons of the benefits that you get from saving. Anyone that wants to save needs to know how to spend correctly too.
There’s all sorts of ways you can spend money unwisely. Check out my top 3 worst spending money habits below.
1- Buying something because it’s on sale
Who doesn’t like a good sale? I know I do. I always feel better about buying something when I get it on sale or at a discount. However, just because something is on sale doesn’t mean that you should be spending money on it. Sometimes you’re just wasting money away by buying the sales.
To be clear, most times it’s best to wait for sales before you buy certain things that you know will go on sale. Stores have their “semi annual” sales that they routinely have, and if you know you need something from there then you should wait to buy it when it’s on sale.
How about things that you don’t need though? Just because something is on sale doesn’t mean you should spend money on it. Sometimes it’s best to just not spend anything at all. That’s money you can put into savings. That’s money you can use for something else that you need. If you don’t absolutely need it, then skip it!
2- Plan to buy, don’t buy then plan
This sort of goes along with the previous one in that you shouldn’t just be buying things just because they’re on sale. You want to steer clear of those impulse buys if you can. The less you can do with impulse buying the better.
The best way to do that? Make plans to buy things. If you’re going to the grocery store, then make a list and stick to it. Are you going to shop for new clothes and shoes? Then make a list of what types of things you’re looking to get and stick to that list. Don’t just buy 4 of those skirts because they’re on sale and you love them. Do you really need all of those skirts? If you made a list and it’s on your list to specifically get 4 skirts then go for it, but if not then skip it!. Make your plans and stick to them.
3- Quit paying for things you don’t use or need anymore
If you’re still paying for that gym membership that you haven’t used for months then you need to quit it now. Why are you throwing your money away? If you’re not using something then quit paying for it.
I get it, sometimes it’s hard to get out of the habit of paying for something that you’ve been doing for year. Maybe you just like having the option to go to the gym so you keep it. Or maybe you just keep it because you’re too lazy to cancel. Don’t be lazy! There’s no reason to throw your money away. You need to plug these leaks in your financial game immediately.
Some things that you’re paying for that you might not need to include: cable, magazines, gyms, costco or Sam’s club memberships, music memberships. There’s just so many to name, and really it’s anything that you’re paying for on a regular basis that you just don’t use anymore. Find the leak in your money game and plug it up. Quit throwing that money away.