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It’s not your salary that makes you rich, it’s your spending habits. - Charles A. Jaffe

 

A simple quote but with a profound meaning. The popularity of social media has both been a boon and a bane. It has been a boon because it helps in connecting with your loved ones. On the other hand, it becomes a bane as it promotes showing off. In an endeavour to be better than others, many have fallen into the trap of overspending and buying things that they don’t need.

It is often later on that people lament their mistakes but then, bad spending habits can lead to hazardous financial situations. That is why you should learn to budget your expenses and control your spending habits to create a sustainable financial plan.

So, here are some tips on controlling your spending –

Avoid social media influence, stick to your budget

The first step in controlling your spending is to overcome your desire to show off on social media. Avoid it. Before you are influenced to buy, ask yourself whether you need it, whether can I afford it and whether can I avoid it.

Then, create a budget and list down your expenses and income so that you can find if your expenses are overshadowing your income or not.

Say no to weekend splurging

Come weekends and many of you itch to go out either to socialise, dine out or indulge in a movie night. Though ignored, such itches can cost considerable money. Dining out at a fine restaurant can cost somewhere between Rs.2000 to Rs.3000, a movie with family can also amount to the same if refreshments are included.

Rather than splurging, try a weekend at home. Settle in, watch the latest movies and series on OTT platforms, opt for a home-cooked meal and you would be saving a considerable amount.

Control your credit card spends

Credit cards can be a boon if used wisely. However, if you misuse the credit limit or spend outside of your means, you would face a considerable debt. With high-interest rates, credit cards can lead you to a debt trap.

So, use your credit cards wisely and keep a tab on your spending. Click here to read more about Credit card Do's and Don'ts.

Plan ahead for a big-ticket purchase

Save in advance for big-ticket purchases like mobile, home appliances, vacation, etc., rather than creating a big dent in your finances.

Differentiate between needs and wants

When spending, ask whether the expense is a need or a want. A need is something that should be met while a want is not. A want is something that you desire. A common example is dining. It is more of a want than a need. The need is eating which you can easily do at home and save on the expenses of dining out. So, spend on your needs first and occasionally indulge in your wants. 

Spend less, save more and invest your savings in fruitful avenues. This would help you earn attractive returns and create a corpus for your financial goals. As your goals are fulfilled, you would have a good financial future. Isn’t that what everyone wants?