Mindful spending will save you money. Shopping around for good deals, spending just enough on clothes or shoes and passing on morning flat white coffees could help you in your saving goals.
Every cent counts in a time of emergency. People make mistakes and fall into the overspending trap. If you are making one or more of the costly spending mistakes listed below, then it's time to pause and make some corrections.
Are you spending more to save money? Spaving - coined by blending spending and saving is a very clever sales trap. It happens when people tend to buy more than needed in a flash sale or a weekend special, thinking that they are saving by buying in bulk. The anxiety of missing out encourages us to spend more.
2. Paying full price
You may be paying more if you purchase everyday items like fuel and groceries at full prices. Shop around by comparing prices, look for specials and promotions, use reward cards or search for coupons and discount vouchers at GrabOne & Groupon to get better deals and savings.
3. Retail therapy
When people make impulse or emotional purchases, it is expensive and often results in unnecessary spending. Whether they're unhappy or had a rough day, feelings trigger bad buying decisions. It is important to manage your emotions. Do things differently, to help you ease your misery. Take a timeout- exercise, clean & organise or bake a cake to lift your spirits.
4. Signing up for store cards
Retailers encourage shoppers to sign up for the store cards by offering extra discounts on their purchases. In order to get that conditional extra discount people tend to go to the same store or store group and "spave", when they could get better options cheaper elsewhere.
5. Rewards credit cards
Even though rewards credit cards provide cash back and incentives, they also encourage overspending by producing offers and additional discounts. They are ideal for travel and cash back offers- However they tend to have higher interest rates than non-rewards cards. To avoid getting allured by overspending unsubscribe to the deal alerts. Use reward credit cards only when needed.
6. Avoid paying fees
Choose the right bank account type that best suit your spending needs. Carefully review the fees and charges. To avoid any dishonour fees, ensure you have enough money in your account before issuing a cheque or an automatic payment. If you pay fees on each EFTPOS transaction then plan well in advance. You could get cash out when you purchase things or withdraw all your needed cash at once from a network ATM. Withdrawing cash from non-network ATM's incurs unnecessary fees. When you know how to avoid paying unnecessary bank fees, you could free up extra cash for your savings.
7. Cancel memberships and subscriptions
If you are not regularly using your gym membership or reading your subscribed journals, it is time to cancel them. It's more ideal to pay as you go if you rarely use your memberships and subscriptions.
You can easily set your financial goals by referring to the guides and tools located on sorted. It is quite tough to stay motivated and keep track of your spending. At least if you can avoid some of the above expenses, you can save up for any emergency funds.
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Note: The above is intended to be general information and not financial advice. Cashtillpayday does not give financial advice.