Category: Am I Spending Money On

Am I Spending Money On The Wrong Things?

In most cases, habits are created after an activity has been done several times over. While some acquired habits are good, some are very harmful, especially if they are affecting your financial life. Unfortunately, some of these habits are hard to detect until it is too late. Even after discovering that you have such harmful habits, doing away with them can be difficult. Most of the harmful financial traits people have today are acquired in their adulthood as they strive to cope with their demands. To be specific, bad spending is one of the harmful habits that can be hard to reverse. The commonest of all problems, in this regard is overspending. Again, you may be spending the right amount of money—in relation to your income, but are you spending the money on the right things?

Spending money on the wrong things is a financial problem that can be hard to detect. So, how do you know when you are spending your money on the right things? If you do not know what you want in the first place, chances are that you will end up buying the wrong things. As such, contemplating on what you really want before buying it will make you buy the right thing. With the following tips, you can detect and reverse this habit before it is too late, hence live a happier life.

How Much Of What You Want Do You Have?

Assume that you had planned to buy a nice home for your family by the time you are 40 years old. Then at the age 39, you realize that you have been making a six-figure salary for about 20 years, but still you do not have the home you had promised yourself. Instead, you are living paycheck to the other. The question in such a situation would be, where did all that money go? While your scenario may be different from this, you will realize that you spend all the money on the things you could justify at that moment, such as parties, cars and clothes. However, you did not spend any money on what you really wanted. Stopping to think about what you want to buy will help you make better purchasing decisions.

Prioritize Your Values

Values are simply what you desire with your heart and soul. Values are somewhat different from goals. For instance, your goal may be to buy a house within a certain period. A value, in such a case, is what the new house will represent for you. If you do not take time to consider your values, you will realize that your financial decisions are not in line with the values. Failing to prioritize your values while making financial decisions can make cause you to waste money on things that are not important. Again, if your spending habits are contrary to your personal values, you will not end up living a fulfilling and happy life. As such, your values should guide you when buying things so as to ensure that you buy the right things.

What Are Your Reasons For Buying Something?

Sometimes, it can be difficult to choose some things over others. Buying a car or a house are both important financial decisions. However, which of the two is the right thing to buy at the moment. This is something that few people take time to think about. If you follow your instincts, in this case, you are more likely to end up making the wrong financial decision. It is at such times that you should contemplate on your reasons for buying the two things. This will help you ascertain which of the two items is worth buying at the moment, hence end up buying the right thing. Again, some life choices are hard to make. If you remember your reasons for making such choices, you are likely to remain focused on achieving your objective.

Finally, all these tips suggest that you should have an accountability system to help you remain on track. Before you buy anything, such as a new TV set, a pair of jeans, or a car, you should first stop to ascertain whether it is in line with your values and reasons. If it is, you can proceed and buy it. If the purchase is not in accordance with your values and reasons, it would be wise to drop it. By considering such aspects, you will start making conscious choices; hence buy the right things every time.