How to Spend Less

Greetings all!

Do you want to be more intentional and thoughtful about your spending? 

Image: https://pixabay.com/photos/time-is-money-money-calms-down-sleep-1339781/

If your answer is YES, try this lifehack from financial advisor Suze Orman.

Every time you are about to buy something, whether it costs $10 or $1,000, stop and ask yourself:

Is this a need or a want?

If It’s a Want
If you are really serious about reining in your spending, forego spending on wants. Or build in guardrails: I will spend only $X a week on wants. Either way, by stopping and identifying a potential purchase as a “want,” you are elevating it as a potential source of saving - either by forgoing the purchase entirely or by opting for a less expensive option.

If It’s a Need
Even with needs, you might be able to reduce your spending. The less expensive brand - whether it be food or clothing - meets your needs and can save you money. And it’s even more in play for huge expenses, such as buying a car or a home (or the place you decide to rent). A car to get to work is a need. As is shelter. But what you choose to spend on both is up to you. Asking yourself if you might be able to fulfill the need and spend 10%, 15%, or 20% less can transform your finances.

I really like how simple this Need vs Want test is to help us pay more attention to how and when we choose to spend money.