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Conscious spending
Frivolous Spending
- The short-term decisions, impulsive buying, and the "I want it now" mindset is hindering every progress we make away from achieving our financial goals.
- We constantly spend on things that have little to no value for ourselves, such as lattes, daily pizza dinners, and even beer.
- We aren't consciously thinking about our money and the repercussions of each and every single choice we make.
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SIMILAR ARTICLES & IDEAS:
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Key Ideas
Preparing financially for the future
With the perspective of an economic crisis in 2020, some of us already have to rethink our spending habits to make ends meet. Others may feel more financially secure. But when recessions come, they...
How to treat your income
Whatever income you are earning right now should be treated like it’s temporary.
Treat your current income as if it might need to stretch for as long as possible. It doesn't mean you need to cut back on everything, but you might need to consider cutting some of your expenses so that you can put more money into savings.
Saving versus spending
Saving money now is worth more than spending money later. This advice applies to any budget item that you could spend less on now.
Even if it is a really great deal, remind yourself that cash in hand now is worth more than an unnecessary purchase.
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Key Ideas
Measure your expenses
Take a hard look at how much you are spending day to day. Every time you spend money, write it down as it happens in a little notebook or log it into an app.
Alternat...
Aiming to save pounds, not pennies
Get a cheaper living situation: Live in a smaller house that needs less stuff to fill it or get a roommate.
The personal finance rule of thumb is to spend no more than one-third of your income on rent.
You Can Cook
If you can read, you can cook. If you can read and cook, you can use meal planning and prep to save time, money, and improve your health.
Base your menu for the week on two things: what you already have in the house and what is on sale at your supermarket.
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Key Ideas
From consumer to investor
A consumer spends money and follows trends while an investor puts capital to work and takes advantage of trends.
Chronic...
Discover if you’re a consumer
- You feel the need to reward yourself after a hard day of work by buying new clothes/accessories or eating out.
- Lifestyle creep controls your expenses. When your income increases, you buy a new car or a more expensive house.
- You reserve your credit card for unexpected expenses instead of using an emergency fund.
- You rationalize using a credit card to buy things you might not purchase with a debit card.
- When something is on sale, you feel the urge to buy it, even if you wouldn't have otherwise bought it.
- You follow social trends.
- You don't think you have money to invest or the time for it.
The chronic consumer
Consumers will remain consumers, even if their income increases.
- Negative spending habits can destroy your financial life, and disrupt your mental health and relationships.
- Credit card debt can put stress on the quality of your life an contribute to unhappiness.