Becoming A Smart Spender Can Be A Positive Lifestyle Change

Written by: Lauren Topper

Changes in the economy have made many people aware of the need to spend money wisely. Smart thinkers are postponing vacation destinations, buying big ticket household items, even putting off weddings, until the economy gets better. No one can predict how long this process will take, so the best thing to do is to cut back instead of cutting out completely. Becoming a smart spender is not as difficult as one may think. For those who go on unnecessary shopping sprees, buying things that they do not have a use for, this may be a drastic change. Tightening up the belt, as the ancestors used to say, may be the best recourse to smart spending. There is no need to change your lifestyle. Most people just need to make a few adjustments to some of their habits. Being a smart spender can mean that a person can have all of the things they want, and still have money left over for a sizable savings. Now, there’s a word that some people find hard to grasp hold of. They consider a savings as money that is left over after everything is done. In actuality, this can not be farther from the truth. A savings is what you pay yourself before everything else comes out of the paycheck.

Waiting for money to be left over may be a long wait. Smart spending will dictate that you spend on yourself first by donating to your own savings. Doing this will often force a person to be a smart spender. You know that what you have left has to cover a lot of ground, so you make it work. The most innovative to save is to take advantage of the payroll deduction offered by employers. Money that is not seen can not be missed. This is when you really learn to be a smart spender. If there is a big ticket item that you must have, take the opportunity to enhance your credit rating by buying it on an installment plan. The key to dong this is to make sure that the payments will not be a burden, and that they fit into your available budget without having to go into your savings. Many people make this mistake. They will make a purchase, then have to get money from their savings every month to make the payments. This defeats the purpose of smart spending. One rule to smart spending is to never have to pay out more than you take in.

Often times, it is the small purchases that are made that can cause a big depletion of finances. When shopping, people will buy things that are on sale for no reason other than it was on sale. It may be something that you can not use, but you will figure out someone to give it to. Stores have sales especially for those people who love to shop without a purpose. Another rule of smart spending is to shop only when there is a need, and buy only what is needed. You would be surprised at the amount of money that can be saved by practicing this rule. It will also eliminate the clutter and clean up when it is time to make room for necessary items. Some people may use this process of buying unnecessarily as a way of giving back when it is time to make charitable donations. This is all well and good, but a monetary donation would be just as good, or better. Change this spending habit, and become a smart spender, and not have to clean the closets every month.

Everyone is not a financial wizard. Those who are smart about how they spend are usually those who are avid about making investments. People love to see their money grow. If you are in a position to invest in something that will provide a lucrative return. The smart spender always talks with a financial advisor before delving into any investment market. The market is very diverse, and determining which would be most profitable should be left to the professional experts. The stock market is an open choice, and making a sound investment should only be done after researching a product, or entity for your investment. A financial banker, or real estate broker can provide information on the best possible opportunities for investing your money wisely. If you are not interested in getting into large investments, you personal banker at your bank will be glad to give you information on the options available for you there at your own bank. You can buy CDs as part of your savings options. This allows you to have the money, but not be able to withdraw it as readily as with the average savings account. Before you know it, your smart spending has allowed you to have available money for the new home, car, vacation, or daughter’s wedding.

Smart spending does not take a college course to know how to manage it. It can sometimes only take the willingness to do, a little ingenuity, and the creative spirit of knowing how to make things work in your favor. Being a big spender does not always result in popularity, but being a smart spender will make people take notice. For those people who love to be extravagant, even the most elaborate dinner party can be had on a budget. Vacations do not have to be taken away because they will be too expensive. Take the time to research the preferred destination, and look for deals on hotel stays, or other lodging. A cruise can be taken very inexpensively by choosing the right time like off seasonal times. There are many ways to cut back, be a smart spender, and not have to change the lifestyle that you have become accustomed to, or the lifestyle you would like to have. Smart spending is more a state of mind than action. If you set the mind to it, you can do it, and be successful at it.


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