How To Spend Your Money The Right Way

Have you ever made a purchase that you instantly regretted? Maybe you aren’t practicing effective money spending or maybe you just don’t know what smart spending habits are. Whatever the reason, learning how to spend your money the right way is key to improving any financial situation, especially if you have financial goals you want to reach. This means you need to learn how to make mindful money choices. The good thing is you can use these 8 spending tips to get on the right path.

Use These 8 Tips To Spend Your Money Wisely

1. Learn What Drains Your Wallet

It’s easy to blame big monthly bills for draining your wallet, but the truth is there are always smaller culprits in the midst. Things like that daily drive-through coffee, impulse shopping to pass the time, and eating out can easily eat up hundreds of dollars a month from your budget. Take a month to truly observe where you spend your money. Spend as you normally do, but jot down all the discretionary purchases you make. You may be surprised to learn what you could be saving.

2. Try The 30-Day Savings Rule

The 30-day savings rule helps curb impulse spending and increase your savings. The way this rule works is, when you see something you really want but hadn’t planned on purchasing, wait 30 days until you buy it. If after the 30 days are over and you still want that item, go back and buy it. Nine times out of ten, though, the impulse will have passed, and you’ll have one less thing to clutter your home and a few extra bucks saved up.

3. Automate Important Expenses

For monthly bills you can’t avoid – like your Wi-Fi, rent, or your mortgage – you should try to set up automatic payments to go out as early in the month as possible. This will make sure your basic bills are covered without any extra effort on your part. One thing you need to be mindful of is the account you use for your automatic expenses. You need to make sure you have enough money in that account to cover your expenses so you don’t accidentally overdraft.

4. Look For Cheaper Providers

Every few months or so, review your automatic payments and subscriptions to make sure you’re getting the best deal. Usually, no matter what the subscription is for, there are various providers that you can choose from that can offer different deals or have cheaper prices. For things like your entertainment, phone service, or insurance, be sure to shop around before deciding on a provider.

5. Take Advantage Of Credit Card Perks

If and only if you are responsible with credit, consider getting a credit card with certain perks. You can learn how to spend your money while getting cash-back or miles on most purchases. Add this card into your automation mix by paying bills with it, then setting up automatic payments to the card from your bank. You’ll reap the benefits of the card without ever paying interest or losing out on money.

6. Don’t Spend Your Bonus Money

One of the most important tips on how to spend your money is not to spend any bonus money. This includes unexpected cash you receive for a work bonus, birthday, refund, or gift. Unfortunately, most people take this as discretionary money and spend it straight away on something they don’t really need. Instead, look out for your future self and put it directly into your savings or investments.

7. Use Apps And Coupons To Save

If you think you know enough about how to spend your money, there are still ways to save money while making your regular purchases from different grocery stores or even department stores. Cash-back apps can reward you for buying everything from things like groceries to even back-to-school shopping. A few app options you can use to remember these deals include the following:

• DollarSprout
• Rakuten
• Dosh
• Ibotta

While these cash-back apps can make keeping coupons and deals simple, if you’d prefer the classic way of doing things, you can also choose to clip coupons from newspapers and flyers or even get digital versions through many stores’ apps. While a dollar here or there may sound small at the start, this can quickly add up to hundreds of dollars of savings per year.

8. Create A Budget

Lastly, the best way you can make mindful money choices is by creating a budget. Creating a budget is one of the best ways you can put together smart spending habits because it keeps you accountable. Start creating your budget by taking note of all of your expenses and the money you have coming in. Then you can divide your expenses into categories so you know what is absolutely necessary and what is recreational spending. From there, all you have to do is make sure to stick with it.

What If An Emergency Ruins Your Progress? Get A Registration Loan To Help

What happens if you are hit with an urgent bill that needs your immediate attention before it gets worse? If you need to pay off that urgent bill right away, you could look into getting a registration loan of up to $1,500 from us at Southwest Title Loans. All you need is your ID, a vehicle registered under your name, your checking account, and a valid Social Security number to find out if you can qualify for this loan. Fill out our online loan inquiry form today to speak with a representative to learn more.

Get Your Extra Money Today

Learning how to spend your money takes trial and error, so give yourself some time to form those smart spending habits. These eight tips will definitely help you mindful money choices and make sure you are practicing effective money spending. And remember, if you need emergency money quickly, we here at Southwest Title Loans are here to lend you a hand and up to $1,500 to get you back on track. So fill out the online form on our website to learn more about our registration loans right now!

 

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.