We took a poll yesterday asking you what your financial goal of the week is and this article is as a result of what you all voted most.
Unnecessary Spending is spending without a cause. If you buy a shoe because you don't have a shoe, that's meeting a need. But if you buy a shoe just because that's unnecessary spending. You would have shoes to wear if you didn't buy the new shoe. As a matter of fact, you may have about six different shoes to wear if you don't buy a new one. Unnecessary spending isn't just spending on what's not on your budget, it's spending money on a whim. On an impulse. Not the intuitive kind.
Unnecessary Spending is spending without a cause. If you buy a shoe because you don't have a shoe, that's meeting a need. But if you buy a shoe just because that's unnecessary spending. You would have shoes to wear if you didn't buy the new shoe. As a matter of fact, you may have about six different shoes to wear if you don't buy a new one. Unnecessary spending isn't just spending on what's not on your budget, it's spending money on a whim. On an impulse. Not the intuitive kind.
- Have a budget: If countries and conglomerates can have a budget, you should too. After all, you're a big deal too. Plan for every money. The mistake many people make is they only work and plan hard for how to make money. They have no plan whatsoever how they will spend it when it arrives. And you know preparation is the mother of success. Planning your money is the easiest thing you can ever do for your financial life. Plan for the basic necessities of life such as food, clothes, shelter, transportation, home bills, etc. Plan for the other things that aren't basic necessities. Plan for your career advancement. Plan for your entertainment. This way, you know where to direct every money you make. You won't even have any money lying fallow waiting to be splurged on unnecessary things.
- Don't let FOMO (Fear Of Missing Out) Win: "Everyone is using the latest smartphone. So, I must get mine." is the reason you may fall into debt. Keeping up with the Kardashians is the reason many people waste money on things that aren't important. Hold on, are you saying I shouldn't want the best things in life? No, that's exactly what you should seek. But the best things in life aren't possessions. They are the values you live life by, the habits you cultivate, the mindsets you build, and the fulfillment you enjoy when you build the life you want. You aren't missing out on anything if you are sticking to your budget, running with your financial plan, and staying humble.
- Track your spending: It's not enough to keep a budget, you must track your expenses. You planned that N5,000 was going to mobile data in a month; did you have to spend more? Could you have spent less? Tracking your spending helps you keep track of how your budget is relevant to your lifestyle. It'll also show you what kind of spender you are and loopholes in your budget.
- Always have a list: One of the gravest mistakes you can make is to go grocery shopping, electronics shopping, or clothes shopping with a mind list. What's a mind list? A list in your mind. You always have to write a list no matter how fast you think your shopping will be. Write a list of the things you need to buy, then a list of the things you want to buy. This way, you prioritize your need list before even thinking of your want list. Also, this helps you curb unnecessary spending.
