subject: Learn to Resist the Urge to Spend [print this page] Now, more than ever it is time to exercise financial restraint. Rather than spend the last five dollars in your wallet just because you got paid today is not wise. Consider taking that $5 and putting it in your savings account or your penny jar.
While it is easy for me to preach the reasons to save money, resisting the urge to buy something you really don't need can be very difficult. One way to help yourself resist that urge is to understand how marketers and advertisers get to you, your emotions, and ultimately your last five dollars!
I am sure that you realize that marketing and advertising is tested and retested in focus groups to ensure that the marketing message will reach and grab the greatest number of potential customers. A purchase is often a reaction to an emotional appeal. For your "heading-back-to-school" teenager the lure is probably the most recent trend in clothing, mobile phones, or even a car! For you, the adult, it may be that you just have to have that really nice watch that you saw in the mall or a great Dooney and Bourke bag. After all, you have to look nice on the job or while you are job hunting, right?
But there is a huge gap between what you want and what you really need.
Here is what youneed in terms of money each month:
Housing: Mortgage payment or rent.
Debt: Credit card bills, student loans.
Travel: Gas, auto maintenance such as oil change, auto insurance, etc.
Food: This category includes groceries, personal care items, household careitems such as cleaning supplies, pet food etc. You should also budget a small amount for dining out.
Utilities: Water, Electricity, Propane, Garbage pickup, etc.
Telephone (land-line, mobile, or both)
Insurance (home-owners, health, life, etc.)
Misc: Medical or Dental if you are not insured or have a high deductible.
Savings. Even if you can only afford to put $5 a month away, by making it a habit and seeing your savings grow, you will feel proud of yourself and compelled to save even more.
Here is what you maywant, but don'tneed:
That really terrific red Gucci bag that you saw inSaks the other day.
Daily cups of high-priced coffee at your favorite Starbucks or other coffee shop destination. Trust me, I love a great cup of coffee or a latte as much as the next person, but when you addthose regular trips up, you will find at the end of the month that you could have paid more on a credit card bill or two or added more money to your savings account. Isuggest that you treat this as just that, a treat. You will probably enjoy it more and you will certainly enjoy your savings more!
$5o worth of lottery tickets. I know that hope springs eternal, but you are really just giving your hard-earned money away.
Dining out frequently can really be a budget buster that is easy to ignore. There is nothing wrong with going out for a nice meal once in a while or really splurging (if you can afford it!) for a special occasion such as an anniversary or birthday. However, many people eat out for lunch and then may head home, grab the family and eat out again. Or bring home something from a fast food restaurant. By taking your lunch to work most days you can save a substantial amount of money every month. This is also true for evening meals. Even if you are not a good cook, or just don't really think you have the time to cook, it is very easy to pick up pre-made meals in the grocery store. You can purchase everything from pre-packaged salads to entrees. It is much easier on your budget and probably healthier.
Creating a budget is very easy by using one of the many free financial calculators available on the Internet. You Can Deal With It.com has a nice one that will help you examine your money spending patterns.
