It is important to take a good look at my spending and lifestyle and take out any meaningless spending or any finance-harmful action. Here is a detailed list of some behaviors that may affect my financial status now and in the future.
Smoking is a disastrous habit. Smoking costs a lot of money now to buy cigarettes. It will also affect my health badly now and will cost me a lot of money later to deal with its long-term use. It is known now that smoking is the main cause of lung cancer. So, we must stop smoking now to save money now and later. With a great collateral benefit of being healthy 🙂
Liquor is also a big problem. It wastes our clear thoughts and affects our brain functions. Liquor also affects our liver a lot which will lead to a lot of medical expenses we can avoid by our actions now.
Drive safe and take care of your car. It is very important not to be reckless or inconsiderate while driving because statistically, that will put you in danger and potential losses due to medical expenses or car repairs.
Eating a balanced diet and diversifying your food is also very important. Consuming too much of any food has hazardous effects on health. Most chronic diseases like diabetes, high blood pressure, gout, and more come from taking a lot of certain food. Lots of glucose in sugar and flour will lead to obesity and diabetes. Lots of salts and fats will lead to blood pressure problems. Lots of meat will lead to gout. All of them will cost money to deal with.
We don’t need to compete with others by buying stuff that is not good for our financial status. I don’t need to spend half of what I have on a car to brag or look cool or to be better than some one else. I have to be practical in my purchases.
Create a Budget: Start by creating a comprehensive budget that outlines your income and expenses. Identify areas where you can cut back, such as discretionary spending or non-essential expenses. Set realistic spending limits for different categories and track your expenses to stay within those limits.
Track Your Expenses: Keep track of all your expenses, whether through a notebook, spreadsheet, or budgeting app. This will help you understand where your money is going and identify areas where you can make adjustments.
Differentiate Between Needs and Wants: Distinguish between essential needs and discretionary wants. Prioritize spending on necessities like housing, utilities, groceries, and transportation, and be mindful of unnecessary purchases that may not align with your long-term financial goals.
Cut Back on Dining Out: Dining out, ordering takeout, or buying coffee and snacks can add up quickly. Consider cooking meals at home, preparing packed lunches, and brewing your own coffee to save money. Reserve dining out for special occasions or limit it to a reasonable budgeted amount.
Reduce Impulse Buying: Avoid impulsive purchases by implementing a cooling-off period. Wait 24 to 48 hours before making a non-essential purchase. This gives you time to evaluate whether it’s a necessary expense or an impulse buy that you can do without.
Shop with a List: Before going grocery shopping or making any other purchase, create a shopping list and stick to it. This helps prevent unnecessary purchases and keeps you focused on what you genuinely need.
Comparison Shop: Before making a major purchase, compare prices from different vendors or retailers. Take advantage of discounts, sales, or promotional offers to ensure you’re getting the best deal.
Evaluate Subscriptions and Memberships: Review your subscriptions and memberships regularly. Cancel any that you no longer use or that don’t align with your current needs and priorities. This can include streaming services, gym memberships, or other recurring expenses.
Find Affordable Alternatives: Seek affordable alternatives for products or services you regularly use. Look for generic brands, shop at discount stores, or consider buying used items instead of purchasing brand new ones.
Practice Mindful Spending: Before making a purchase, ask yourself if it aligns with your values and long-term goals. Consider the value it brings to your life and whether it’s worth the cost. Being mindful about your spending helps you make more intentional choices.
Finally, everyone has his own life circumstances. So, we need to take a pause and look at our spending and stop doing the not-so-important parts.