How To Make Better Spending Decisions

Are you looking for new ways to save more? Are you feeling like you are spending more money than you are making? If so, not to worry, you are not alone. When it comes to our savings, there are a lot of factors that come into play. And one of the big ones is our spending. What would you say is your worst spending habit? Is it a specific item? Everyone has them – and whether you are treating yourself or spending freely, we can all make better spending decisions. That’s why we dive into how to make better spending decisions and for more information; check out these blogs to help you save more.

Having a Budget in Place

Here at GoDay, we’re all about staying on budget. And we like to provide you with options when it comes to your payday loan and budgeting to help get you to stay on track. Because having a budget in place is the first step when it comes to saving money and making better spending decisions.  We’re all always looking for ways to help you save more money, but when it comes down to it, what are you willing to sacrifice to cut down on your spending and buckle down on your budget? And we understand that life happens. There are financially more stressful times of the year where it is easy to lose track of your spending, which is why we ask – how do you keep track of your money? The first question we always ask is if you have a budget in place? Many people have different ways of how they like to manage their finances and budgets, stop by our homepage for more information and learn more about how we can help in times where you need to buckle down on your budget and make better spending decisions.

Not a budgeter? That’s okay. Like other money matters, one of the most common questions when it comes to starting a budget is “when do I start”? And the answer is – you’re never too young or too old to start budgeting. Even if it’s your first part-time job, once you start spending money, you should know where it’s going and have some form of budget tracking in place. At the same time, if you’re getting closer to that retirement age, it’s not too late to start planning out your retirement spending and savings. It’s one thing to put all this effort into budgeting, but it’s another to actually follow through on your financial goals. By sticking to the budget list you’ve created, you’re working on creating financial stability focused around you and your lifestyle. When starting to make your budget, you need to find out what works for you. So what happens when you’ve blown your budget? This means you may need to take a step back and focus on your spending habits to know how you got off track. Being aware and able to paint the picture of what went wrong are the keys to understanding the state of your current financial situation and setting an action plan as to how you’re going to rectify or make sure you are financially in a good spot to get back on track. Work at your budget for a few months as this will allow you to work out the kinks and remember that we’re also here to help you cross that financial bridge to get you back on track.

Spending Intentionally

No matter what we’re spending money on, there is always a reason for the purchase right? So how do you make better spending decisions? Become more meaningful in the way you spend. But when it comes to the non-essentials do you have to justify your purchase and why you’re spending money on it? This is a bad habit when it comes to things like shopping and other expenses but there are ways you can break it. We often get caught justifying our spending. Ask yourself “why” when you’re spending. Are you purchasing items impulsively? Is this truly a need, or a want? How will this item add value to your life? Asking yourself these types of questions forces you to engage with “things” in a much deeper, more meaningful way. And by being mindful about the items your purchasing will help create the long term happiness we discussed earlier.

We know that there are many reasons why we spend money and a lot of the time it makes us feel good too. When it comes to spending your money and how it makes us feel, it can give you many things, and not all of them have to be physical items, but sometimes the ones that can make us the happiest are the dollars that give us the opportunity to have memorable experiences. This is why being smarter when it comes to saving and spending can have such a big impact.

Financial Wants vs. Financial Needs

Do you know the difference between a financial want and financial need? Financial wants are the items and things we desire, compared to our financial needs which our financial obligations such as bills, debts and everything else life throws at us that we need to pay for. Which is also usually the things that don’t make us happy and would rather be putting our hard earned dollars isn’t something else. And on top of that, we need to be saving! So how do you not go over budget and still but also have enough fun without living paycheck to paycheck? It’s a trick everyone is learning to master, and there are more and more resources out there no matter what your financial responsibilities are. We’ve become accustomed to some of these things that we think we “need” them because we’ve had them for so long when really it’s more of a “want” and would be just fine without them.

Are you living within your financial means? It sounds easy, right? Well, you would be surprised as to how much people are constantly overspending and thinking that things are within their means when they surprisingly aren’t. This is very common when it comes to materialistic goods, the ones we’re buying because we think it will make us happy.  Living in a society where the latest gadget is a “must have” and brands create good marketing to make us feel we “need” these things is one of the ways people are constantly overspending and finding themselves in debt. We suggest you stop overspending and evaluate the things that are a want vs. need and create a budget so you still have fun.

Know Where Your Money Is

It’s not about knowing how much you regularly have coming in, but also how much money you have coming out as the first step in being able to create your budget. This is not only a starting point for your expenses but also your savings. Off the top of your head, do you know your total monthly expenses? That’s why creating a list of each expense can help lay out all your costs and make it easy to see where your money is going. If you know you’re not staying on track means you have an idea of your spending habits to know how you’ve gone over budget in the first place. Once you have your costs organized you will feel more financially prepared financially by having a budget in place that will help you with the ins and outs of your money.

By being aware you’ve blown your budget this will help you be more cautious when it comes to your spending. There shouldn’t be any extra expenditures when you’re already in a financial bind, and by understanding how you got yourself into this financial situation is what also needs to be addressed. Did you miss a bill payment and the interest is adding up? Is it a big month in terms of expenses? Has there been an emergency where financial assistance is required? No matter what the situation, understanding why you’re in the financial spot you are in is what will help you get out of that bind, but will also help you prepare for the future accordingly. When you’re in this kind of financial position, this is where we can step in to help, because that’s what our payday loans are for – making sure you stay afloat until your next paycheck and get you back on track.

Treating Yourself

We’re not saying that you don’t deserve special treatment, but this also has to be done within reason. These guilty pleasure purchases have become a catchphrase that when you hear of someone “treating themselves”, the conversation usually follows up with something that was purchased that was not originally budgeted for but makes you happy. This also goes along with justifying your purchases because we don’t want you to be giving yourself an excuse to go out and spend money. But treating yourself to things often can have the same effects as unplanned spending because of a lack of planning (getting take out when there’s food in the fridge at home), falling out of budget and financial routine. Staying on track and treating yourself less often can help you save money towards the things you really want to do or buy, like that vacation you definitely deserve. Everyone splurges now and again, but it can also be on little things as a form of a reward and doesn’t have to break the bank. But it is making sure you have the funds available to do so and that spoiling yourself isn’t a regular occurrence. Needless to say, we always support celebrating (within budget) special occasions and accomplishments.

Worrying About It Later

Are you keeping track of your spending throughout the month? Do you know how much money you put onto your credit card each month? Not everyone keeps track of what they’re charging to their cards, but by throwing purchases onto your credit card without keeping your budget in mind is what can get you into debt in the first place. This is also the perfect example of when customers need our help. Start your application on a new loan to help you get to your next paycheque. Especially if you’re trying to tackle debt, putting purchases on your credit card compared to using cash or debit is what can lead you off track. So come the end of the month and you’re looking at your credit card statement and realize how much you’ve actually spent. Next month try and plan your purchases better or even try not to use your credit card for that month and only work with the funds you have available through cash or debit. This can be done by planning your purchases ahead of time. Things like special occasion spending can add up to. So if you know the holidays are coming or you have a wedding to attend, save your pennies since you know you’re going to need to spend them and start purchasing things in advanced. This will help avoid big surprises on your credit card bill at the end of each month.

It’s okay to have bad spending habits. You’re definitely not the only one. But it is knowing how to break those bad spending habits and make better spending decisions that will have the most impact. These habits can be a variety of things depending on your lifestyle and interests. But what bad spending habits can often allude to are bad savings habits. And as much as we would all like to spend more instead of save more, saving money should always take precedence. Learn more about us and how we’re helping people make better spending decisions.

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