Have you ever considered the real cost of your habits? An enlightening exercise to gauge this is to keep track of your spending on certain habits on a daily, weekly, monthly, and yearly basis. The figures might astonish you!
Habits take time to form and eventually become an integral part of your normal routine. Suppose you have a particular financial goal in mind. In that case, it might be beneficial to cut or minimize some expensive habits. It’s generally easier to cut out harmful, unhealthy habits, or those that don’t enhance your life in any way. I’d recommend starting with these.
To ignite some ideas, here are seven habits you may consider giving up to save money:
1. NON-ESSENTIAL OUTSOURCING
While outsourcing can help save time and sometimes even money, it can turn unprofitable if you excessively rely on others to do everything. If you lack the skills or poor time management is an issue, you may fall into a trap of over-outsourcing. It’s wise to curtail outsourcing to a few pivotal things that bring genuine return on investment (ROI). Simultaneously, ensure you have the competency to do some tasks on your own.
2. RECREATIONAL SHOPPING
‘Retail Therapy’ might be a mood-lifter for some people, but how does it impact your finances? Probably adversely. One way to outsmart this routine is to plan shopping trips with distinct purposes instead of mall visits prompted by sheer boredom. There are several other inexpensive hobbies that can give you pleasure without cluttering your space.
3. SMOKING
Both smokers and non-smokers are aware of the financial and health repercussions of this habit. Smoking not only weighs heavy on your pocket but it also affects your health and the environment. If you can quit smoking, you could save an impressive amount of money that can be used for things like clearing debts, taking holidays, investing, and potentially retiring early.
4. REGULAR COFFEE BUYING
Being moderate in buying coffee is the key. I, for instance, do not patronize Starbucks daily, weekly, or sometimes even monthly. I’ve come to realize that ‘little’ frequent purchases like fruit smoothies accumulate into a considerable amount. Now, I treat myself only occasionally. As a coffee lover, investing in a good coffee maker and preparing your coffee at home or drinking it at work (if available) can be a smart move.
5. DISCARDING LEFTOVERS
Considering how easily we throw away leftovers, it may seem harmless. However, it’s equivalent to wasting your hard-earned money. To overcome this, try meal planning and coming up with innovative recipes using leftovers. It’s quite resourceful, and you’ll discover new meals that could become favorites.
6. GAMBLING
Limiting or avoiding habitual gambling can lead to significant savings. Frequent gambling is more likely to make you lose money than win it. With uncertain outcomes and potential addictions, it seems best to curtail this pastime.
7. RELIANCE ON CREDIT CARDS OVER BUDGETING
Using your credit card for unexpected or routine purchases could cost you more in the long run. Your credit card should not serve as a backup fund. If you’re reaching for it frequently, without budgeting for these expenses, it is likely that you won’t be able to clear the full bill each month. This could result in high interest charges. If used wisely, credit cards can boost your credit score.
In conclusion, it would be insightful to evaluate how much you could save by giving up these habits. Will you consider dropping any of these? How much do you estimate saving from doing so?
