Do you have a bad spending habit? The truth is that many of us don’t really know where our money is going each month, which leaves us with next to nothing to put in our savings accounts.
Shaking off bad spending habits is much easier if you know where your money is going each month and what the drains on your finances truly are. And if you want to increase your savings or be able to add more into your child’s saving account – click here to find out more about Junior ISAs – it’s time to kick those bad spending habits into touch and start taking your finances seriously.
Read on for 4 bad spending habits you need to break to save more money.
Spending more than you earn
It’s a big one. And something that most of us are guilty of doing. Simply put, if you’re spending more than you earn and living outside of your means then you’re never going to have anything left over. Not only that, but you’re more likely to get yourself into debt and if something unpredictable happens such as losing your job or having a reduction in your hours, then those overspends could spiral out of control, plunging you into debt. Whether you’re dipping into your savings accounts, you’re borrowing from friends and family, living off credit cards that you’re not paying off at the end of the month or you’re constantly in your overdraft…
The answer is simple, don’t spend more than you earn. Reduce your spending!
The dreaded lottery ticket
We’ve all dreamt of having our numbers come up. But it’s highly unlikely, and all that money you’re spending on lottery tickets each week (sometimes more than once a week) quickly adds up and completely drains your monthly wage. Try not to get swept up in the excitement of a big cash prize or a rollover and save your money for essentials!
Not saving at all
If you’re not putting any money away at all, then you’re spoiling your own chances of being able to rescue yourself from a tricky financial situation, saving for a house, a car or another large investment. You may think you can’t save right now, but the solution is to go through your spending and finances and make some simple changes to your lifestyle and save the difference. It can seem daunting, but it’s worth it!
Brand-name items
Cleaning products, clothes, detergent, even dog food – brand name items are expensive. Especially when we compare them to supermarket own brands. The truth is that there is very little difference in the quality of these products, and you’re more likely paying the additional cost for the name on the label rather than the quality of the product itself. Make the switch to supermarket own brands and see for yourself!
Ignoring your budget
Obviously, if you decide to go to the effort of making a budget but then don’t follow through with it then you’re never going to save any money! Be saving-smart and stick to it!