Spending Habits

Spending habits-Can make you rich

Ways of managing money can make you rich, we as a whole know this and every one of our older folks are keep recounting to this story for quite a long time yet a few of us overlook or cover our contemplation on this. Spending habits vary from person to person, profession to profession, and age to age. 

Sense of spending when it requires and where it doesn't require is the most important step towards your goal of achieving the best spending practices. The first thing we need to understand is our intension towards the expenditure because money saving is equally important as much as your earnings and increments.

Below are some of the spending habits mentioned for your better understanding:

• Going for a royal family dinner as soon as you get paid.
• Buying new clothes even when your wardrobe is not having little space in it.
• Waiting for the last minute to buy the flight tickets at a premium cost.
• Going on vacations, and spending too much on new things in spite of having all of them.
• Hangout with friends just to show your money and status.
• Overspending on restaurants and picnic budgets

Nowadays, I can see that 90% of the population is following others for the above-specified trends of expenditure.

People are running behind "Status"

What is the status? Individuals misbelief "Status" by showing off the things and money. Individuals use many times the phrase "we have some status and class" in relation to spending on unnecessary things but status is nothing more than the ability to stand with financial cruciality.

Class and status are two words that have a very different meaning for every one of us and again it is dependent on our financial and social stability.

If you don't have any money to secure your family with respect to financial instability then what status you are talking about. This big word is for big people not for us who are trying and working hard and harder to earn for their livelihood and security and retirements.

I know some of you can make faces on this as I am going against the flow but have you ever think that if you spend Rs 2000 on a dinner with your family to make them happy and satisfied that happiness you can earn in just sitting together with your family, making fun with your children and eating with your wife and parents in just Rs 100 or 200 at most.

Guys, I want to explain to you that happiness and satisfaction are within us and we are searching it outside and paying anything to achieve that.

Status is nothing but a perception within us, which keeps on changing from time to time and person to person. Financially sound doesn't specify the wastage of money on unnecessary products and services.

Also, read https://bijimoney.blogspot.com/2020/06/difference-between-needwantsdesire.html

How to break your bad spending habits

Becoming rich is not any pill, that we have taken at night and become rich in the morning. This is a slow and steady process that is created within, which creates richness. There are many people who have very healthy spending habits, that defines their knowledge and understanding between good or bad spending. on the other hand, some of us have very bad spending habits which we need to break.

Below are the points which can help you in breaking your bad spendings

Find out your feeling in first place after spending your money

This can be different for all of us, you have to feel that just after spending on goods and services how do you feel, let's say I personally sometimes feel very satisfied that I have made the right purchase and it was really required. While in most of the cases I felt guilty after making purchases and spending too much on unrequired items. The most important point is that I only realized that the item is not required when I have completed the purchase process.

Self-analysis for bad spending habits

 The answer is within you, you have to check which one or more of the below best suits to you:

• Do you have the habit of roaming outside without any reason
• Do you like to eat outside every time even you have good options at your home
• Do you like to change your gadgets every year even when it is working good
• You like to buy the clothes on every sale information, you get through advertisements
• You like to search for online shopping apps all through the day even when you don't need any product
• You always use the credit card for shopping for small or big

Replace your bad spending habit with a good

This is our psychology and we have to work within us to replace our bad with good ones. The first step towards your goal is to find out the problem and once you get that then it is half solved, once you come to know your bad habit then you can easily control and replace the same with good, find out the way you would be happy with the change as like below:

Bad  Habits	Good  Habits
Do you have the habit of roaming outside without any reason	Start reading good books
Do you like to eat outside every time even you have good options at your home	Ring some of your friends and together make good food and chill out
Do you like to change your gadgets every year even when it is working good	Use your gadgets as much as they are giving you the best
You like to buy clothes on every sale information, you get through advertisements	Wear your old clothes in different new styles
You like to search for online shopping apps all through the day even when  you don't need any product	Try searching for news/ updates/can see movies good recipes etc
You always use the credit card for shopping for small or big	Keep your credit card for emergency use your debit cards to do shopping

Things you can do to save more and spend less

Beware from impulsive buying

We many times do window online shopping in our free time and then impulsively we add items into the cart, we have to leave that cart for a day and then check it another day, I assure you that you will not find anything to be ordered and you will remove all the added items from the cart because yesterday you made the cart impulsively but that impulsiveness burst in a day or even after some hours of doing window shopping.

Categorize your priorities 

Categorize your priorities are making a list of things that are necessary and do the expenditure accordingly. Off the list all those expenditures which are not important and can be controlled. This priority list to be made with your family suggestions and explanation otherwise they will do their own spending which creates chaos and rather controlling over the spending you may be increasing it.

https://bijimoney.blogspot.com/2020/06/Investing-Little-Money.html

Compatibility with your partner

You should be having good compatibility with your partner who also has an understanding and value for money. I have seen in many families that always there thoughts clashes and end with the arguments on money matters. You should frequently open the money matters talks with your spouse and make them understand your investing goals and planning for your child, for vacations, for retirement.

Ask for their suggestions and views and then make a mutual shopping list to minimize your expenditure and maximize your savings as well as investing.

Hide your credit cards

Credit cards to be hidden somewhere that can be only used in an emergency or medical purposes because using credit cards on a regular basis is one another bad habit that boosts your expenditure graph like anything and downturn your savings graph after paying credit cards bill on your salary credit day. The number of credit cards in our wallets is in trend but this is not any license for you to spend any amount and anywhere but this is the liability which you carry with you and you should not take the undue advantage of the same.

Try to decrease your debt daily

You should always have in mind the debt you are carrying with you. Increasing debts or loans on you can lead to restless nights and can make you sick all the time. You can buy every luxury on loan is the one major cause which can snatch your futures wealth. If you are buying anything on debt, then you are giving double the money in terms of interest to the banks or fins. Institutions. If you have taken the loan for anyhow then try to pay as soon as possible to become debt-free.

Buy luxury only with cash

The loan is the facility given by banks and financial institutions for the necessary things like making/buying your home, your business expansion, your education. Buying luxury with the loan cannot make you big but can take the chance from you to become big. Let's say Sanjay bought a honda city car of Rs 10 lakhs by loan @ 8% for 5 years and also bearing all its maintenance and petrol expenditure. You can check below that you are paying 2.16 lakhs interest on your luxury to the bank means approx 2.5 lakhs Sanjay will be paying every year for this luxury car + petrol and maintenance charges. 

Now again you have to jump point number two that is Catagories your priorities if buying a luxury car comes under your priority then go with your own savings, not with loans. Do not buy luxury if you do not have cash for the same.

So to brief all the important points from above discussion here we come up with some highlights: 

The key the point we come up with :

Investment = Income-Expenditure

 Expenditure=Income-Investment        

"It's not the salary that makes you rich but it's your spending habits"