Good spending habits.

Good spending habits could help you meet your commitments and let you have more for the things you really want. Do you know where you are spending your money? Are you spending it on the things that really matter? Is there money available when you really need it? By developing good spending habits, you will be able to answer these questions and could create new opportunities for you and your family.

Here’s 3 ways you can develop good spending habits. First separate your wants from your needs. Whenever you want something that is outside of your plan, ask yourself “Do I really need this?” If the answer is “No, but I want it”, then ask yourself “Do I want it enough to go without something else?”

You can then make the choice whether to buy the thing you want and miss out on something else, or decide that even though you want this thing it will have to wait until another time.

Secondly, it’s amazing how quickly little things can add up! We call these little things money leaks! That can of soft drink you buy for $3 each day? If you buy one can a day, that’s over $20 a week and nearly $100 a month. Which is over $1000 a year!

What else could you do with that $1000? It’s not just soft drinks either. Your money diary can help identify where you have these little money leaks that can add up quickly over time. Reducing money leaks helps you to spend less and save more for the things you want.

Thirdly, control emotional spending. Did you know when you go food shopping when you’re hungry you are likely to buy more than you need? When you’ve had a great day or a not so good day and go shopping to either celebrate or make yourself feel better you’re more likely to spend more than you planned to!

So let’s recap. Understand your wants versus needs. Understand your money leaks – remember little things add up. Control emotional spending. Developing good spending habits could improve your savings, create opportunities, and help you and your family become more financially independent.