unnecessary spending

5 Ways You Can Avoid Unnecessary Spending

Malaysia is probably one country that has unending sales, and it’s difficult to not get tempted by it. Nevertheless, there are always ways to say no to unnecessary spending. If you wish to ease the burden on your account, here are ways you can cut back on it.

Stick to a Plan

If you fail to plan, you plan to fail. As cliché as that sounds, learning to stick to a plan might be the answer to curbing your spending’s. At the start of every month, set a budget for your necessities. Also, do set aside a budget for regular events that don’t happen every month, such as special occasions, maintenance, and others.

Do ensure that your budget measures up to your income and then start planning around it. If you’re still unsure, budgeting apps such as Mint, YNAB, or Monefy might come in handy.

Hold Yourself Accountable

Now that you’ve set a budget, it’s time to hold accountability towards it. Once you start noticing that you can’t stick to the monthly budget that you have set, it’s time to face the fact and change it. Whether if it’s by decreasing your expenses or increasing your income, start by recreating a budget that is adaptable.

If that is still not possible, partner up with someone who you can trust. Allow them to hold accountability towards your financial goal of sticking to your budget.

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unnecessary spending

Learn to Separate Wants from Needs

There is no doubt that shopping is a pleasurable activity for many people, but if you’ve discovered that you are purchasing things that you rarely need, that’s when it’s time to evaluate your unnecessary spending habits. Buying behaviour is often linked to human emotion and emotional spenders often find themselves going on a shopping spree with the intention of improving their mood.

You know yourself better than anyone, not the advertisers, sales persons, or retailers. A simple way to identify your need is to do without it for a period of time. If you truly can’t live without it after that time, it’s possible that the item is a need.

Get Over Your FOMO

f you didn’t already know, FOMO is the abbreviation for “Fear of Missing Out”. Ever felt the urge to purchase something just because your colleague or close friend owns it? There’s nothing wrong with not having the latest pair of Yeezy’s, honor 8X,  Samsung Galaxy Note9 or iPhone XS. Be proud of not having FOMO and appreciate your own financial goals. Remember that any kind of fear is always not good.

Set Small Financial Goals

Achieving goals, no matter big or small, is one of the most fulfilling feelings in the world. Start by creating short-term financial goals as it will help you to stay motivated while you keep track of your spending’s. Having goals also acts as a reminder of why you’re not spending unnecessary money. Your financial goals can be as simple as being able to pay for your future travels.

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* This article was written by Vino K from CompareHero.my, a site dedicated to increasing financial literacy and helping you save time and money by comparing credit cards, personal loans, and broadband plans in Malaysia.