Once you start earning a steady income, there is always a temptation to spend it on things you want and not something you need. Managing money is ultimately your responsibility since it is you who knows best about your needs and wants.
In general, think twice about every purchase you are about to make, its short-term and long-term implications. People realize most errors in retrospect, but if you plan well, you will not have to make the mistake of wasting money.
In this article we will let you know the expenses you must avoid to save up for future expenses.
Expenses You Should Avoid
1. Impulse Buying
An expense for something you don’t need is an unnecessary expense, and a purchase you never planned for is an impulse buy. The act of impulse shopping is the epitome of wasteful expenditure, and yet, numerous people are victims. Going to a mall and getting lured by the large discount banners and combo offers make you buy things you don’t need.
Planning your expenses and sticking to your budget is the best way to curb your shopping urges and extravagant spending. Limit your social media usage and avoid malls and window shopping as much as possible to prevent yourself from going on a shopping spree.
2. Additional Loans
Your student loan is likely the first loan you will settle after earning, but it need not be the last. You could secure further loans to purchase a house for your family, own a car, or pay for your kid’s education, all of which could be necessary.
Every time you opt for a loan, you should make sure you are spending it on a valuable asset that you cannot delay, and that you are in a position to pay it back.
If your job situation is uncertain, or you don’t need a car to go to work every day, you must avoid such an expensive car loan. In general, it is better to save up for future expenses.
3. Credit Card Purchases
If you take only the required amount when going shopping, you are forcibly making yourself stick to the budget. The one curse that comes your way is the credit card. The prospect of buying now and paying later using a credit card leads to several wasteful expenses.
It is good practice to use credit cards only for emergencies and not for regular shopping. If you don’t want to freeze your card, lock it up somewhere or ask a friend to keep it temporarily. That way, you will introspect some more whether the purchase you are about to make is essential.
4. Services You Never Use
Do you have a club or gym membership for clubs you never hang out in and gyms you never visit? Do you pay for cable every month when all you do is watch Netflix?
If so, cancel the unnecessary service charges you pay every month. The mistake that people make is to consider these as only a minimal expense, say, 150-200 dollars a month. But, as these costs add up over a year, they total a significant amount that you can eliminate.
