Tips on Smart Spending

What makes a person a smart spender? To me, I think that a smart spender is a person who knows the true value of the money they earned and knowing how to use it wisely. This means – being able to take $10 and spending it on many different items.

Tips on Smart Spending

Here are some tips on how you can be a smart spender. Some that I’ve picked up myself (after learning the hard way), and some from others.

1. Create a budget and stick to it!
Creating a budget is easy. But to actually stick to it may get tricky! Here’s what you should do: Compare your income to how much you spend. I find it better to do this on a bi-weekly basis, like every payday. Make sure to have 2 separate bank accounts – chequing (spending) and “savings”. For each paycheck you get, move a huge portion of it from your chequing to your savings account. As much as possible, I recommend you set this to occur automatically (you can set up an “auto-transfer” of accounts with your bank). This way, you would only see your “spending” money – your budget. And in the long run, imagine how good it would make you feel once you see your accumulated savings account!

2. Do you “need” it or “want” it?
When people are browsing at the mall or grocery stores, they tend to see something that they didn’t plan to buy, but would like to buy. Before you go on a spending-spree, ask yourself: “Do you need it or just simply want it?” Why buy something you don’t really need? You’ll end up regretting your purchase as you probably won’t be using it anyways!

Take the Starbucks phenomenon at Vancouver for example. Walk along Robson Street, and almost everyone is carrying a cup of Starbucks with them. This is kinda like subliminal advertising in a way. What happens? You end up buying your own cup of Starbucks. Do you need it or do you want it? You’ll most likely just want it – so there goes $5.00!

3. Shop Around
When shopping for an item, any item, make sure you check out other stores and compare prices. Not every store sell the same item at the same price. Of course, each store would have their own sale, promotion, or something that gives them a competitive advantage!Also, when shopping around make sure to compare and keep the following categories in mind:

• Price
• Quality
• Design

Take the magazine tote for example. Who would have thought it would be cheaper to buy a magazine tote at Chapters than it is at a dollar store or Winners??? The price is cheaper, the quality is as durable as any magazine tote, and the design was actually perfect for where I was planning on putting it!