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Bad spending habits and techniques for saving money


Date Posted: 2/12/2013 5:23:37 AM

Posted By: SimonMburu  Membership Level: Silver  Total Points: 838

Saving money is a good way of progressing in the financial world but many people find it hard to save money because of bad spending habits. In order to save money you need to cut down unnecessary costs and plan for your money properly. Some people have quite large monthly incomes but they end up in debts even before the month ends. This leads to a lifestyle of paying debts while at the same time creating debts in order to survive.

I am going to mention some common bad spending habits that have made saving a nightmare or a very hard puzzle to solve.

1. Failure to budget. Budgeting helps you plan for your money knowing what items you need throughout the month and how much they will cost. Failure to plan leads to unnecessary buying of small things when need arises which costs more than a planned budget.

2. Buying things you didn't intend to buy. Sometimes you might come across a beautiful dress or a pair of shoes in the market and you end up purchasing it. These unplanned purchases lead to deficits in your wallet forcing you to borrow some money to sustain you till payday.

3. Overspending because you have some extra money coming. If you have been promised some money somewhere you might get tempted to spend the one in your wallet and unfortunately you land into problems because the promised cash was not delivered.

Youngsters have these habits because fashion and entertainment is the first priority in their scales of preferences.

In order to save money you need to try the following techniques.

1. Never carry all your cash. It is good to keep part of your salary in bank or m-pesa to avoid getting tempted to overspend. This can also be achieved by placing some funds

in a separate savings account.

2. Learn to budget. Budgeting your monthly expenditure will help you realize how much you can save every month without incurring any extra costs and debts.

3. Show commitment to your plans for saving, do not save for the first month and then give up on the next month. You have to be brave enough to forego all your extra pleasures like going out every weekend and so on.

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