Spending wisely can make you rich, and knowing ways to save and spend less can do the magic. A 2009 study revealed that Money Can increase your Happiness – if it’s spent in a way that jibes with your personality and creating a good spending plan can help make a fabulous difference in your financial life. Overcoming spending addiction is definitely an act that requires mastering.
Have you wondered that whenever you have an extra amount on a huge sum, you would want to go on a spending spree till it gets to a whole number. For instance, wanting to spend the 25k from your earned 125k, thinking you would stop when it gets to 100k but end up spending the whole money till it’s totally finished!!
I once received a sum of 355000 from work. I wasn’t expecting the money when it came, so I didn’t bother to save or make any spending plan .
Benjamin Franklin once said, “If you fail to plan, you are planning to fail.”
The jackpot spirit in me took charge and i sliced into the money like a well grilled juicy steak being dissected by a sharp edged table knife. This habit made be stop to wonder what i would have done if i had won the powerball Jackpot.
I took 55000 and went on a spending spree for things I couldn’t account for. I said to myself “oh I still have 300000” and this was what I kept telling myself till the last cent. You can imagine making a decision you considered the best for the moment ; only to later discover that it wasn’t the best financial decision .
I have come across people from different works of life that practices the same pattern of spending , So I thought I’d share tips on how to curb this attitude and improve your attitude towards money by imbibing financial literacy.
Change your attitude towards money
Have you ever wondered why poor people usually remain poor, while the rich always get richer? There’s a simple explanation and it’s directly related to their attitude towards money.
A lot of people believe that you have to spend money to make money, but the true question is how do you spend money!
Plan for every money
This part takes me aback to Benjamin Franklin’s quote about planning. A spending plan is simply your budget that helps you grow, save money, get out of debt, pay your bills and still allows you the freedom to spend money on reasonable things that you value.
Be financially disciplined
Financial discipline refers to how well you are able to conform your spending and saving to the plans that you have set to achieve. If you don’t have a financial plan in place, it’s really hard to be disciplined about how you spend your money because you haven’t created any guidelines for yourself to follow. The primary reason for financial problems in life is lack of self discipline, self mastery, and self control.
Keep your financial plans on track by setting a money objective, using automation and giving yourself a savings challenge.
You must be able to differentiate between an asset and liability, cash and profit, good debt and bad debt, etc. and you should make properly researched investment decisions and not depend on others. You can read financial literacy books and also take free online courses on financial literacy.
The lack of financial literacy may lead to you into making poor financial choices that can have negative consequences on your financial well-being.
Remember ; financial intelligence is the gateway to riches