Spending Extravagantly? Learn To Control The Spendthrift In You
Is the incessant desire to own the iPhone 6 killing you, even though you bought a Samsung Galaxy S6 just 5 months ago? Do you keep buying clothes even though you have endless piles of them back at home? Or do you keep hoarding shoes even though your shoe stand is spilling over? If yes, you are a certified spendthrift!
So a spendthrift is someone who spends money right to the point of being irresponsibly wasteful. If you are one of them, it is high time you opt out of this habit immediately. It is not something to be proud of and can have disastrous effects on your mental and financial health. Here are ways to control the spendthrift in you.
Admit That You're A Spendthrift!
First things first, admit it. Solutions can be found, only when we know where the problem lies. If you have an uncontrollable urge to spend and you fall prey to it each time, there is nothing to be embarrassed about. A spendthrift usually doesn't even know that he/she is spending by tonnes till they are told so. Talk about it and only then you can find ways to curb it.
Finding What Tempts You To Spend
Lavish parties? Frequent vacations? Endless shopping? What tempts your spending nerve? Figuring out what's tempting you to spend and where most of your money is going, is the ideal way to start saving it. Whether that is discretionary expenses (entertainment, dining or recreational shopping) or non-discretionary expenses like groceries, paying bills, traveling expenses, etc. Make a list and write down the numbers. Single out expenses that embarrass you and seem like an unnecessary waste of monies. Cutting down on these expenses will make you a saving-conscious person. At all cost, avoid temptations that empty your wallets.
Ditch Away the Credit cards
Crediting money has cost many lives. And there is no end. Spending what isn't rightfully yours, has done no good. Living off credit money from a financial institution will only land you in trouble. Although the idea of spend now, pay later, entices all, very few really understand the futuristic gravity of it. Swiping the credit card at every till and counter only pulls you deeper in the grave called ‘debt'. So heed our advice – cut your credit cards and trash them. Learning to spend what you have is a life-saving habit all must imbibe.
Beg-Borrow-Steal Can Gradually Kill
A spendthrift is a religious follower of this mantra – beg, borrow, steal. They need money to fulfill their erratic wishes by hook or by crook. As soon as their savings are depleted, they reach out to a friend asking for money. This is wrong. You are not only getting addicted to the tiresome habit of spending extravagantly by borrowing, but you are also running your friend's budget out of track. The worst part is, that one day, you are left with no friend and no money, to help you out of a bad situation.
Investment Is The Key
Start with saying no to tele-callers who rope you in with fancy money-shelling offers. With all the surplus money you've saved, start investing in places that will give you good returns after a period. Consult a financial advisor for reliable plans such as PPF (Public Provident Fund), FD (Fixed Deposit), MF (Mutual Funds), SIPs (Systematic Investment Plans), etc. and as soon as you get your paycheck, hitch your money in the plan. Save it up for your future rather than spending it recklessly.
A penny saved is a penny earned, and in the end that's what counts. So, get a grip on the spendthrift in you and ensure a secure financial future.