The Importance Of Saving Rather Than Splurging
After the Christmas period, and the habit of buying has been kicked into full swing, it can be hard to leave your card in your pocket in the New Year. You’ve bought everyone else a gift; now it’s time to treat yourself in those Boxing Day Sales, right? However, with money being the number one cause of health-threatening stress, you may find that your spontaneous buys bring you more pain than happiness. Here are three questions you can ask yourself to curb that contactless enthusiasm and help you to hold onto your pennies through the year 2018.
Are You Actually Saving Money In The Sale?
Everyone loves a good bargain, but when it comes to a sale, there are some cheeky tricks the retail world uses to make you think you are saving more than you really are. Having a point ninety-nine on a price rather than rounding it to the full pound to make it seem cheaper, and the bag for life you don’t really need as you have a thousand at home, but it has a new pretty design on it so you buy it. Sound familiar? Well, when it comes to sales it’s the percentage off you need to focus on. Work out the price with the money off and ask yourself again is it really worth it just for the pennies saved? Do you really need it, or are you just caught up in the buying frenzy caused by the idea of saving a bit of cash? Remember, not buying anything at all will save you even more.
Is The Price Worth Your Time?
When you think about money how do you measure it’s worth? How far you can stretch it through the month? Or how many zeros are after that decimal point in your savings account? A good piece of advice to follow is: think about it as the number of hours you have worked to acquire it. So, when you are looking at that bag you really want, or those shoes that you just have to have – work out their price against your hourly wage. Would they still look as glamorous if you had to work all those hours again just to have them? If not, they may be best left on the shelf, and the money left in your pocket.
Is It Your Money To Spend?
If you are someone with multiple credit cards, you may think the odd splurge will not hurt – but is that splurge really yours to spend or will you be working to pay it back before the deadline. If you added up all your splurges over the years – would it be enough to have brought you out of debt if you’d saved the money instead? It may be worth looking into a credit card consolidation loan, cutting up all those excess credit cards and having your debt in one place to pay off once and for all. Curb the splurge, and give yourself the chance to spend your own money – not a bank’s, and it will be all the more rewarding to have those dream shoes in your collection as you worked hard and saved for them.
Hopefully, this has given you some motivation to have your best financial year yet in 2018.