To All The Money You’ve Wasted Before

On a positive note, you have started the month with the best intentions at heart. You intend to save money by buying what you actually need and by steering away from from temptation. You have created a seemingly robust plan to watch your spending habits. However, things do not seem to work despite your unwavering efforts. Do not beat yourself up! This happens to many of us.

Taking control of your finances starts with understanding your triggers. Why are your drawn to buying the non-essential items? Analyze the physical, environmental, and psychological triggers that cause you to spend. Managing said triggers will help you to avoid overspending.

Let us start with the physical factors that can affect your spending habits. Dropping by the nearest grocery while you are hungry may not be a practical idea! Your rumbling tummy makes you more susceptible to purchasing more. You are less likely to spend time exploring the isles when you already have a list in mind.

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Environmental factors include exposure to shopping malls, flea markets, and television or online shops. Are you more likely tempted to spend due to the convenience of having an item delivered through your doorstep? There are certain situations that can make you feel obligated to spend. For instance, some people are more likely to spend when they are travelling. These people go on a spree because of a mindset that they will not be able to come back there anytime soon.

Focusing on the the psychological factors will highlight the Money Disorders. Money disorders is a broad umbrella consisting of money avoidance, money-worshiping, and relational money disorders. Compulsive buying is under money-worshiping. Inner conflicts drive compulsive shoppers to overspend. Earlier in life, they often learned that shopping provides a temporary escape from worries and anxieties. The chemical reaction that shopping brings to them can be compared to an addiction that leaves them to crave for more. Is your problem as serious as this?

The second step to financial control is tracking your spending. Keep track of all your purchases for a month. Figure out whether an expense is essential or non-essential. Afterwards, get the total of each category. How much are you spending on the non-essentials? Perhaps, you can cut back at least S$50 per category?

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The final step is to allocate your money strategically. You need to give every dollar a place to stay. I do not intend for you to max out your account! Instead, you must allocate your money to several categories such as: savings, investments, retirement or emergency funds. Having money lying around can lead you to spend it. Do your wallet a favor! Avoid being trapped in this situation.

Sources: 1 & 2

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5 Surefire Ways To Waste Money

Many posts on financial websites concentrate on the positive topics such as the effective ways to spend money and the healthy financial habits of successful people. However, these articles may not highlight the negative habits and practices that cost you money. And some people really need a wake -up call!

To help prevent unhealthy behavior as well as to add in the scarce literature on this topic, here are 5 Possible Ways To Waste Your Money:

1. GIVING IN TO DESIGNER GOODS

As you walk past the Orchard Road, you saw the huge crimson sign that said: “SALE”! Your highly elated self rushed through the counter and bought the first branded bag you saw. The rush was amazing but it did not last for long. The next day, you saw an email from Zalora that they are having discounts on Michael Kors’ watches. The Silver Steel Bradshaw watch used to cost S$439 but it is retails for S$307.30 now. Again, you got excited and bought it right away.

Do really need a new designer watch and a new branded bag when you have dozens at home?

These deals may seem like a bargain at the moment; however, it is just excess spending in hindsight. This is why you must list down all your necessities and stick with it.

2. AVOIDING NEGOTIATION

Although most people know that they are worth more, they are afraid to negotiate for a higher salary. By doing so, they are letting an opportunity and hundreds of cash slide.

Negotiating your salary is a game with all of its players attempting to dominate each other. Dominate the game by researching all the needed information. Go in-depth about the complete aspects of the job and the company. Also, collect data about the average pay and accurate salary opportunities in your position.

3. SHOPPING AT ONE STORE

It may be convenient to complete your shopping list at one place but it can also cost you more. Instead of getting your produce, office supplies, and toiletries at the nearby grocery store (e.g., FairPrice or Cold Storage), consider exploring other options such as the bookstores (e.g., Popular or Kinokuniya) and dollar stores (e.g., Value Dollar or Daiso). Visit the dollar stores for trivial things such as cleaning supplies, greeting cards, clothes pegs, and pet accessories.

4. BUYING BABY CLOTHES REGULARLY

Believe me when I say that babies can have sudden growth spurts so, it is unnecessary to buy loads of baby clothes in advance. It goes the same for shoes, as socks will be sufficient to keep their cute toes warm.

Start saving for baby clothes by asking your friends and family if you can have their child’s outgrown clothes. You will not only help your friends or family members to de-clutter their space but you will also save more.

5. INDULGING ON LUXURY BEAUTY PRODUCTS

With the society’s obsession towards physical appearance, it is no surprise that people spend so much on beauty products. There is an abundance of luxury beauty products in countries such as Singapore, Dubai, United States, and Hong Kong. This is one example:

As you can see Tati, YouTube’s famous beauty guru, disliked her experience with the ridiculous US$330 (S$441) Givenchy Le Soin Noir Lace Face Mask. She could have just purchased a S$2 Korean Snail mask and achieved seemingly similar results.

Sources: 1 & 2

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