Do you find it difficult to accumulate savings? Maybe you find it challenging to save any kind of money at all.
If this is the case, you might have a few spending habits that are making you broke that you don’t even realize. Let’s dive into how to avoid them and improve your financial state ASAP.
We’ve all heard the saying as old as time that states “money isn’t everything;” however, it is a BIG part of each of our lives.
We spend our days earning a living, whether that be working for an employer or working for yourself.
Then, we use those hard-earned dollars to be able to afford all of life’s necessities and hopefully a few luxuries.
It is the luxuries that can sometimes be dangerous territory when it comes to trying to save money.
If you find yourself getting caught up in all of the latest clothing trends, always splurging on the latest technology, or feeling like you’re constantly trying to catch up to the girl next door, chances are that these are spending habits that are making you broke.
I don’t mean literally broke. Hopefully you’re still getting by, but always buying into the latest and greatest things can do some major damage to your bank account.
So what are these spending habits that are making you broke?
Tell me, have you ever found yourself in any of the following situations?
- A certain shoe, clothing pattern, or jean style comes into fashion and you buy 5 of whatever it is.
- The latest iPhone or smart watch is being released and you sign up for the pre-order. Every. Time.
- You find yourself constantly eyeing your BFF, colleague, or social media influencer envying their things. Then you buy what you can to keep up or to make you feel like you fit in.
Did any of these hit home for you? Did more than one speak to you?
If the answer is yes, then all of these purchases may be draining your bank account more than you realize.
How do you avoid these spending habits that are making you broke?
It’s simple really – stay practical on your purchases!
Don’t roll your eyes – it doesn’t have to be as boring as it sounds!
It’s too easy today to be sold on “cool”.
There’s a new fashion trend every season, new technology models come out at least once a year, and wanting to “keep up with the Joneses” is an age-old feeling.
It’s a constant cycle of trying to keep up.
So how do you get ahead of the spending curve and stop feeling broke?
The short answer? Start living below your means. You must spend less than you make.
There could be a never-ending list of ways to live below your means. A few examples would be to live in an affordable home, buy a used vehicle, cook meals at home, etc.
For the sake of this post, we are going to discuss just a few purchases that we make in our every day lives.
If you find yourself suffering from constant impulse buys, these points are for you.
Start buying closet staples.
A closet staple is a piece of clothing that can be paired with numerous outfits and will outlast trends that come and go over the years.
Instead of buying a new wardrobe each season, try shopping for high quality items that you can get a lot of use out of.
A few examples would be neutral colored clothing, high quality jeans, and casual styles that are appropriate for many occasions.
Let’s be real – a perfect little black dress will always be a hot commodity. Crop tops, on the other hand, are likely going to be exiting the fashion scene at some point.
By buying closet staples, you are able to build up a capsule wardrobe of all sorts of items that pair well together. This allows you to still be able to create different looks as well.
Fun Fact: I once considered starting a clothing boutique for only neutral colored clothing because it’s practically all I wear anyway! Instead, I started Hey You Finance. Find out Why I Decided To Start A Personal Finance Blog.
Don’t feel obligated to have the newest technology.
This one might be easier said than done, but as mentioned earlier, new models of phones and devices usually come out annually.
Sure, the new model might have updated features, but how many of them do you think you’ll actually use anyway?
The device you have is probably chugging along just fine and still deserves a little love!
Try to make your technology last.
There is nothing wrong with owning the same phone or smart watch for a few years. You can also save some major bucks by buying an older model instead of the latest release when you do feel like upgrading.
Technology is cool and all, but so are some of the simpler things in life. Take time to enjoy the little things, like crisp morning air or a colorful sunset, and not concentrate so hard on actual things.
Be YOU. Not one of the Joneses.
Focus on your own path. Anyone out there focusing on what you do or don’t have and passing judgement shouldn’t have an opinion that matters to you anyway.
Of course, it’s easy to compare. It’s also great to look to others for inspiration, motivation, or ideas. However, take this insight and put your own spin on it.
If you see an outfit you like on someone out and about, start shopping for something similar that fits your budget or is slightly adjusted to fit your unique style.
Buy things that make YOU feel good. Spend your money in a way that enriches your life. Don’t spend it out of obligation to keep up with the “cool” crowd.
If your relationship with money hasn’t always been a healthy one, check out my post on Money Mindset Tips To Help You Think About Money Differently.
When I see something I want to buy, I will wait at least a week to see if I still feel the same way about the item. If it is still something I’m thinking about after a week, I feel better buying it because I know it was something I truly found value in! More often than not, I’ve forgotten about whatever it is after a week and therefore saved myself from making a wasteful impulse buy.
Are you ready to start making practical purchases?
Practical purchases are a way for you to stretch your dollars, treat yourself, and still have some money left over for saving so that you can stop feeling broke.
It’s okay to spend your money on things that you enjoy. Just be sure that you’re not making repetitive purchases that aren’t adding any value to your life.
Buying staple items or other things that you absolutely love will help you to stop the spending cycle of trying to keep up with the latest fads. You’ll feel fulfilled longer and your bank account will start to replenish itself.
Moral of the story: Stay practical on your purchases. Don’t be sold on “cool”. Be comfortable in the path that you’re on.
More Ways To Save:
Here at Freedom In A Budget, I am all about saving money! Here are some of the EASY ways that I save money:
• CIT Bank offers high interest savings accounts and CDs to provide a safe, secure way to earn money grow your savings.
• Fetch Rewards is a free grocery savings app that rewards you just for snapping pictures of your receipts. That’s really it. Free gift cards on groceries on thousands of products every day, no matter where you get your groceries. Just scan your receipts and get gift cards from places like Starbucks, Target, Ulta, Applebees. Use code QHKBH to earn 2,000 points ($2)!
• Rakuten/Ebates: Rakuten is my to go way to earn Cash Back from over 2,500 stores like Macy’s, Amazon, Sephora, Walmart and much more. Join Rakuten today for free, and you’ll get a $10 Cash Bonus to get you started! Every three months, you’ll get a Big Fat Check in the mail or a PayPal payment just for shopping.
• M1 Finance is an easy to use brokerage platform that allows you to invest in Fractional Shares and auto reinvest!
• Budget Templates: Excel budget templates with pre-populated categories and formulas to keep you on track with hitting your financial goals.
Hey, I’m Katelyn! Numbers nerd turned personal finance blogger. My hobbies include detailed budgeting, balancing my checkbook, and investing in real estate. (I wasn’t kidding when I said nerd, ha!) At Hey You Finance we aim to help you maximize your financial potential by encouraging diversified income, budgeting, investing, and managing your debt wisely! The backbone of financial success is knowing where your money is coming from and, more importantly, where it is going.
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