5 Ways to Spend Wisely This 2021
As Dave Ramsey says, “Handling your finances is 20% head knowledge and 80% behavior.” As Joyce Pring goes through all the good and bad decisions when it comes to budgeting and spending, in this episode of the podcast, Joyce shares the things she has learned along the way to be able to handle her finances better.
Financial Literacy
Reading books, listening to credible speakers, friends, entrepreneurs, investors, and people can truly better an individual in handling finances. And upon examining the educational system, topics concerning financial literacy in school are seldom tackled. So it’s important that if an individual desires to change his mindset and save money, he must first handle the small things such as prioritizing savings.
Steps in Spending Money Wisely
Online shop responsibly
Acknowledging that people right now live in the digital world, studies show that the Philippines has the biggest growth of online shopping the whole Southeast Asia in 2020 where it grew by 57% through discovering the joy of credit cards and online wallets. Hence, people have been maximizing their money to the fullest, but be reminded to shop responsibly despite the effortless adding to cart especially during sales.
Be mindful of things you purchase
Figure out the difference between wants and needs, always prioritize the needs. It may be difficult because it is easier to buy things that make a person happy instead of the things one needs around the house, but we have to train ourselves to have the mindset in knowing our priorities. And when we know our priorities, we can save time, effort, and energy.
Do not buy things just because they’re on sale
Even if something is on sale, if we don’t it or won’t actually contribute to us having a better quality of life, then don’t buy it.
Look for shops that sell cheaper prices
Because of hyper-consumerism, a lot of shops offer the same item at different prices. So when online shopping, consider buying items sold at a cheaper price in a different shop. Have options first before buying something online.
Use a credit card wisely
Many probably do not use money anymore because online wallets and credit cards are convenient to use. In order to be constantly mindful of the things you spend, always look at your Statement of Account, double-check them to track the stuff you have paid for.
Eradicating the Fear of Getting Credit Cards
In taking out the taboo of being scared of credit cards, the only way to do it is to be a mindful spender. However, to be a mindful spender, research first regarding the card that suits your lifestyle best. Another is to make sure to set a limit on using the credit card in a manner that you can comfortably pay for. And of course, do not forget to pay them on time so it doesn’t accumulate over time.
Financial Rules to Live By
48-Hour Rule - A person can apply this rule where when one desires to buy, the said number of hours will be used for one to ponder about it.
Times 3 Rule - Unless a person can buy something for three times its price, that individual should not buy it in order to save it as contingency funds if ever an emergency occurs or a better product will be released.
“For peace of mind, prioritize your savings.”
From Episode 80 of Adulting with Joyce Pring: “5 WAYS TO SPEND MONEY WISELY THIS 2021”
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Adulting With Joyce Pring is the How-To’s of your 20’s told by a 20-something, traversing through life expectantly and with gusto!
Episode summary by Chiara
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