Close
Ever stepped on chewing gum while walking down a street? (Disgusting, we know…you’re already getting the picture) It’s Easily squished by your weight until you take the next step and realize how it can be such a pain in your “behind” getting gum off your shoe. This is how your spending habits work.
Most people’s money-spending habits are formed by the repetitive actions they take after earning or getting paid. Bad spending habits and behaviours are surprisingly easy and quick to acquire. They stick in your daily routine, yet, it can take you months or even years to unlearn them.
The unlearning process needs to be preconceived. When you are concerned by how this impacts your finances, then it is easier to identify your bad spending habits and use various ways to unlearn them through good money management practices.
There are many ways to get gum off your shoe. But the crudest is often the first that people try, dragging your sole on the ground. This damages the shoe. Other methods may take your time and concentration and will work. But ultimately, watching your step as you walk in the street will save you the time and mental bother of this whole situation in the first place. Not stepping on gum =no need to get it off your shoe.
It all starts with thinking the right way about earning and spending. But when you realize you have a spending problem, the next best thing is to pinpoint it, learn about solutions to deal with it and apply them. Want some tips that the wealthy use? Here you go:
You’ll only know where you’re overspending (and under-saving) if you track it. Have weekly or monthly evaluations to review your expenses. Differentiate them to wants or needs and classify them. There’s a great way to categorize how you spend in our previous article. Sometimes you may be spending on emergencies while other times you may just have spotted financial leaks. You will begin to condition your mind to the right spending and control your outflows.
Most people admit that they often spend money to either avoid negative situations or stress or to celebrate and feel good. It’s important however to practise wise spending and not let your emotions be the only basis of your spending.
Find healthy coping mechanisms when you have negative feelings. This will keep you from making financial decisions that negatively impact your finances. You could do some exercise, take time to connect with friends or family, Learn/do your hobby or help someone in need of a skill you’ve got. Such activities can shift how we currently feel and help us reconsider how we spend.
Justifying poor spending habits creates denial. This is why you need financially healthy options that boost your spending confidence and promote proper spending. This promotes a positive response within you and conditions your emotional spending.
Take personal financial responsibility by focusing more on how you will return what you borrowed instead of how you will spend it.
This introduces to your mind the reality that you control where your money ends up and your financial fate when you owe a debt. It helps your mind to adjust to self-made constraints to spending to avoid a financial setback or uncertainty that comes with how to clear your debt.
Convenience is the best-paid commodity of the 21st century. In a world where you can search big-name brands on a website or app and the products can have their products at your doorstep for a small delivery fee, you can easily think the amount is not that much.
Before dishing out money on a convenient offer, the product you suddenly now want, or the extra services that come with a purchase, align your financial goals to them. Take probation like 48 hrs before using up anything above $50. Evaluate what else you could spend on that would give you more value or help you earn more to avoid liabilities, recurrent bills or financial leaks. This fine-tunes your money habit to noticing value in cutting on costs to save your money.
A clear vision can be eye-opening when it comes to tracking which direction your financial decisions are taking you. Necessary expenses like house rent, utilities, transportation, food, data and loan payments need to be prioritized. Your written wealth vision often lays bare your financial priorities as goals and reveals how each goal gets you closer to being debt-free, having financial independence and even freedom.
At Financially Fit, we believe it takes your conscious effort to change your spending habits. Try to think about it as forming a new, healthy habit rather than breaking a bad habit. Watch how you practice good spending habits and keep focusing on your financial goals and wealth vision. And if you wish to break free from unhealthy spending habits and learn how to make your own wealth vision, we have the course just for you. Click here.
Don’t forget to follow us on Facebook, Twitter, Instagram and LinkedIn to get regular tips for your financial fitness.
Financially Fit
Riverside Drive, Nairobi – Kenya.
