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10 Habits to Watch to Spend Money Wisely
  • March 18, 2021
  • admin

You all want to be wise with money, right? Is it practically possible? Such things sound good in theory. Almost all finance books talk about spending smartly, but it does not seem easy to implement in real life.

You must have read various blogs talking about how to spend money smartly, but all of the suggestions that you had found there may not be that easy to follow in real life.

You often have various excuses when money is not under your control, such as you are earning little income, living cost is very high, and so forth. Here are the things you need to watch if you want to spend money more cautiously.

Dining out every weekend

Dining out every weekend

The average cost for the one-time meal is about €10 that adds up to €40 if you eat out once a week every month.

This is a sort of a good price to pay, especially if your income is not very high. If you have a family, it could be at least four times.

Stop eating out every weekend if you are serious about stashing away money. You should prepare meals at home.

However, you can enjoy a restaurant meal once a month. The money you save by cutting down on dining out should be put aside.

Buying coffee every day

Buying coffee every day

Do you need coffee every day? Do you drink coffee multiple times a day? Depending on your location, you can spend worth €5 for a cup of coffee.

It can round up to €1,860 for a year. It is a whopping expenditure. You should buy a coffee maker so you can prepare your coffee before leaving for the office.

You should stop consuming coffee if you are a heavy drinker. It may sound rude, but it can help you save a lot of money. Once you overcome your addiction, you will not feel a craving for it.

Falling behind the due dates

If you have taken on debts, you should try to pay them off on the due date. Otherwise, you will pay late payment fees.

They can take up a large amount of your monthly income. If you have credit card bills and doorstep loans in Ireland, due dates can slip through the cracks.

Set the reminder, so you do not fall behind the repayment. If little income makes it hard to pay down the debt on time, you should try to cut back on your monthly spending.

Analyse previous monthly statements so you know where you can cut. You may have to use a lean budget until you settle all of your debts.

Buying things you do not need

Buying things you do not need

Take a look around your house. You will see various things you have bought, but you do not need all of them.

You often fail to resist the temptation of buying things just because they are on the market at the discount offer or you want to keep up with the Joneses. Stop it.

If you continue to buy things you do not need, you are plainly blocking the money that you could have used to pay off debts or building an emergency cushion.

Not building an emergency corpus

Experts suggest that you should have at least three-month worth of living cost, so you do not need to turn to lenders every time you need money.

You should contribute a certain portion of your monthly income to the emergency cushion.

By preparing a budget, you can easily identify how much money you need every month to live off, and then you can put aside the rest of the money as your savings.

Not tracking your expenses

You cannot control over your spending unless you carefully analyse how much you are spending every month.

There is no point in making a budget if you do not keep tabs on your spending. You should know how much and where your money is going.

You can also use budgeting apps that can help you spend within the set limit. They can immediately send you the notification if you come closer to the set limit.

Taking out debt for regular needs

Taking out debt for regular needs

Online lending has made it far easier for borrowing money, and this is why many people have begun to fund their everyday needs.

Debts aim to fund unforeseen expenses. If you are taking out a loan with private money lenders in Ireland, make sure that it is necessary.

For instance, your car has conked out, and you need it to commute every day.

Not checking hidden fees

Before you borrow money, you should research so you do not get trapped in an expensive deal. Note that interest rates vary from lender to lender, and this is because of hidden fees.

Lenders may not tell you about such fees. It may be a part of processing fees too. Try to choose a lender that does not charge high fees.

While reading the contract, check the early repayment fees. Some of the lenders can allow you to pay off the debt before the due date, while the others will cost you a prepayment penalty.

Heavily depends on credit cards

Heavily depends on credit cards

If you rely on credit cards for every purchase, this might cause being run out of money. This is because you do not realise your spending limit.

You should keep cash with you so you could easily track your spending.

Try to make all transactions with cash because this can only prevent you from overspending and if you use a credit card, try to pay off the balance within the interest-free period.

Not creating a budget

Not creating a budget

You all know that you should create a budget and you must have read this suggestion on the internet. However, when you create a budget, you find it monotonous.

Many of you fail to stick to it. Budgeting can help you meet all of your expenses carefully while setting aside for a rainy day and above all you can easily manage to pay off the debt.

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