Spending is part and parcel of everyday life. Everywhere you go and everything you do would most likely entail making a dent in your wallet. Yes, the age old adage “The best things in life are free” still holds true but the fact is, spending is a necessity and properly managing your finances is a must.
Now, living frugally and curbing your spending doesn’t mean taking out the fun in life. You can still enjoy life’s little luxuries, give in to your indulgences and pamper yourself once in a while if you know how to spend your money wisely.
For those who find it hard to keep their spending in check, here are simple tips that you can follow to make you a smarter, savvier consumer.
Make a list. Yes, you’ve heard this a thousand times before but have you actually made one? Making a list is easy and not to mention highly effective. List down and review all your bills every month and organize your expenses by category. Track your spending and make sure that you are not spending more than you are earning. Setting aside money for savings is important and should be your top priority.
Set a budget. Same with making a list, you’ve been told time and time again to apportion your funds properly. Divide your funds accordingly and determine how much you can afford to spend. With a specific budget in mind, you’ll be able to plan your payments and purchases ahead of time and avoid spending on unnecessary things.
Expand your shopping options. In this day and age when anything and everything is available online, your options now extend to virtual stores. Whether you’re on the lookout for home appliances, electronics, clothes and other personal items or even if you’re finalizing your vacation plans, after scouting your options at the mall, check out the items you want to purchase online or vice versa. This way, you’re guaranteed to snag the best available deal.
Schedule your payments. When it comes to spending, timing is also crucial. Apart from allocating your monthly salary for your basic necessities, take into account your bonuses and other incentives. Schedule payments for insurance (for your home, car or life plan), tuition fee if you have kids, and other big ticket purchases when you have lump sum cash that you can spare.
Find a substitute. If the item that you’re intending to buy is too expensive then go for an alternative that fits your budget. But just make sure that your replacement item is of standard grade. The money that you’ll save won’t be worth it if you’ll only end up using the item for a short period of time. Keep in mind that it’s okay to pay a high (but still reasonable) price for good quality items.
The sales person is not your friend. No matter how affable and accommodating the sales person is, or how many compliments you’ve been told, remember that he/she is there to make a sale, so don’t be easily swayed. Listen and take note of his/her expert opinion but make up your mind about the purchase on your own.
Keep an eye on special offers and promos. Take advantage of discounts, freebies and rebates. Getting items at a lower cost, or with a complementary treat, is always a plus. And this is what practical spending is all about—being able to extend the value of your money.
For no fuss and hassle-free instant savings, the new American Express® Cashback Credit Card offers a unique cashback feature that is perfect for smart savvy spenders—automatic cash rebates for every purchase, whether local or overseas.
The ideal means to pay for your shopping needs, everyday expenses, and even big ticket purchases, the American Express Cashback Credit Card is not only convenient and easy to use, it also guarantees outright cashback with every spend.