7 Tips To Become A Smart Spender
Guide to Smart Spending During COVID-19
Life has always been uncertain, but the current global pandemic blurs the future even further. Admittedly, the lack of clarity on what tomorrow holds can be overwhelming, especially if you consider your financial future. This is why it is important that you look at your finances and learn about smart spending, especially at a time of crisis.
Even though life can be challenging, developing good financial skills is your edge against the obstacles. Practicing good money management can help you stay on top of your expenses, easing your troubles away, and helping you save for a secure future.
Here are some tips on how to be smart with your money.
- Stay focused on your original financial goals.
Though the circumstances are not what we are expecting, it is important to keep yourself in check. First, evaluate your current situation, see what stays and what goes, and identify how you must adjust to keep on working towards your goals. May it be cutting your expenses or working with creditors for immediate financial needs, it is important to stay on track so you can focus on achieving your goals.
Contrary to what you might think, you are not alone in this battle. Look at available online resources that can help you make smart decisions and help you navigate the financial world.
- Use a money management app to help track your expenses.
If you want to control how you spend and check how you save, one of the easiest ways to do so is through expense tracking. But, if writing down things is not your style, you can also accomplish this feat by downloading money management apps. Some popular smartphone apps that you can check out are Monefy, 1Money, and Money Manager.
Through the use of an app like this, it will be easier to decide on your budget – and monitoring your cash flow can help you stick your set amount as well. Especially if you feel like you are bad with handling money, creating a tracking habit will change your life.
- Be smarter with shopping for food and groceries.
At this time when our mental health is not at its best, it can be easy to fall into the trap of buying junk food, fast food, or depending on food delivery apps every day. You might feel some gratification while having these meals, but your health (and your wallet) will not thank you in the long run.
There’s nothing wrong with treating yourself every once in a while, but in this crisis, it’s always better to save some extra cash for a rainy day. So, give yourself a limit on what you can buy and always make a shopping list before going back to the store. You can also utilize this time at home to learn quick and easy recipes that won’t cost too much and keep you healthy at the same time.
4. Create an emergency fund.
Because of the pandemic, uncertainty is everywhere. Many industries that we thought are foolproof are now struggling to keep themselves from drowning. Not to scare you or anything, but we never know how long we will be able to keep our jobs. Just to be on the safe side, it is important to set aside an amount that can help you survive comfortably at least for three to six months, just in case any financial or economic emergency arises.
5. Only use your credit card if you know you can pay it off when billing comes.
Credit cards are helpful during emergencies and recurring bills. After all, they are very convenient and some card types even come with rewards like points and rebates. However, if you don’t know how to manage a credit card, you should not own one. Don’t forget that credit cards come with interest and if you don’t settle your balance, the interest rates will pile up and your bills will be out of control. You don’t want to pay for interest forever, right?
Don’t let social media influence you to spend more just to impress.
Ah, the bad side of the internet. Trying to maintain a well-off image just to make fancy photos for your Instagram feed is not the right way to live your life. Keeping up with the lifestyles of the rich and famous, and lying about your status on social media, will just backfire in the long run. Focus on buying not the things you need – and don’t go purchasing stuff just to jump on the bandwagon and be trendy.
7. Invest for your future today.
Smart spending is not only about being careful on the items that you buy. It also entails using your money and put it in things that will make you grow, bringing you rewards in the future. With this concept in mind, why not consider investing as early as today?
In investment, no amount is too little. And even without prior experience, there are many resources that you can study to help you familiarize yourself on how common investment products work.
If you’re looking for something to start on, Blend.ph’s peer-to-peer funding platform gives interested investors the chance to earn staring with just five thousand pesos. Explore this passive income opportunity and try it out now!
Smart Spending Is A Continuous Practice
Remember, becoming financial savvy does not happen in one click. It takes an every decision to become a better version of yourself – sticking to the principles of planning and saving, until you get used to the process. Whenever you feel challenged or tempted, just remember your goals and why you want to reach financial security in the first place.