Monday 10 June 2019

How to Become a Sensible Spender

How to become a sensible spender
Ad {collaborative content} When it comes to spending money, we could all do with being a bit savvier. Whether it’s the little regular purchases that quickly add up or buying things on our credit cards when we don’t have enough in the bank, many of us have bad spending habits. If you find yourself worrying about money, or you regularly overspend, it’s time to take control of your financesA few simple changes might be all you need to go from constantly worrying about money to a money-savvy saver. For instance, instead of taking out a credit card and purchasing unnecessary items on it until you max it out, you could instead consider using a credit card that will help you save, invest and pay down debt. One small change, but a very different mentality that will help you to be in a much better position financially. By following these top tips, you’ll be a sensible spender in no time.
Set a monthly budget
First things first: you need to set yourself a realistic budget. The thought of this task fills many with dread, but it really doesn’t need to be difficult or time-consuming. Start by looking at your essential expenditure each month. This will include your mortgage or rent, household bills, food shopping, car finance, etc. Total these up to work out your monthly outgoings. Then simply take this away from your income to work out what’s left over. Whilst you’re looking through your statement, this might be the time to cancel those direct debits you’d forgotten about, like the subscription for the magazine you never have time to read.

Once you’ve worked out what you’ve got left over from your essential outgoings, you can set a realistic budget for any other spending, such as meals out, clothes or socialising. The key to a successful budget is to make it achievable. Saying you’re only going to spend £10 a week on entertainment is unrealistic. You’re likely to overspend, making your budget go out the window. Set a figure that is low enough that you can save, but high enough to live your life.
Buy what you need…
…not what you want. If you tend to splurge on things that you don’t really need, cut them out. This could be anything from your morning coffee run, to random treats such as a new item of clothing. Sure, if your jacket’s broken beyond repair, invest in a new one. But do you really need a tenth pair of jeans? Maybe not. Stop spending on unnecessary items and your bank balance will see the benefit.
Shop around
Don’t be tempted by the first thing you see. To be a sensible spender, you need to put time into finding the best deals. For instance, if you need a new vacuum cleaner, don’t walk into the closest electrical store and buy the first model the assistant recommends. Do some homework, read reviews online and make sure you’re investing in an item that’s right for you. Once you’ve found the perfect product, shop around to find the best price. Browse online or check out a price comparison site — it could save you a lot of cash!

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