The Nigerian economy is not as good as it used to be a few years ago. Our spending habit has been reshaped over time maybe for good or maybe for bad.
Recently, I ran into an old friend; we had thorough discussions about money. As a matter of fact, my friend had veered to finance for a couple of years.
He lamented on how some Nigerians thrive to live up to people’s expectations in life. In other words, people living to impress other people.
In this post, I will share with you the various ways through which we spend money involved a way that is not justifying.
- We spend much on convenience
- We over spend because of competition
- Impulse purchasing.
- Over spending because you cannot say no
- Spending to maintain a particular lifestyle
Many people spend without having clear cut items on what they want. There should be a listed items or things you want to buy without spending any dime.
Most have automated ways through which we pay bills. Automation is good especially when it is geared towards saving not spending. The cable companies, for instance, offer you services that are very juicy and b attractive for free or no fee at all for a particular period, after which they start charging. This time, it becomes difficult to cancel the subscription.
Don’t spend on everything that comes your way. Some people become too lazy to track what they are spending.
Impulse purchasing can also be linked to not having a budget.
You can’t Say No
Due to our inability to say no to certain demands and request, we spend a lot of money. The truth is when you say yes to everything; you incur additional expenses. You should be able to say no if you know you can’t afford it.
Spending for Competition
Competition or aspiring to own things that your neighbor own has a way bigger ripping you off happiness, aside from making you spend what you don’t intend to spend.
A new smartphone just got launched, and you just want to get it just because it’s trendy. This kind of habit will limit you from achieving your financial goals.
This practice is not restricted to buying a smartphone, it’s obvious on things like wears such as clothes, shoes, wrist watches, etc. If you have them, don’t worry thriving for new ones.
Spending too much on convenience
For instance, how much do you pay for data on a monthly basis? Have you search the web to see if other service providers offer something lesser than what you spend currently. There are other instances too where you spend too much on convenience.
How about your insurance fees? How much are you spending? Perhaps, you’re spending so much, you relax and enjoy their services without seeking for alternatives that would favor you.
The convenience e-commerce has brought to us is also a way we spend too much. It’s tempting to sit down somewhere and order a product and see it delivered in few minutes.
Overspending due to Lifestyle Maintenance
Habit is easy to form but hard to destroy.Most people find it difficult to adjust their lifestyle even during financial crises. They always want to live to that usually standard.
When you’re in financial crisis or when your finances don’t come the way it comes, then, you should be looking for a way to cut your spending.
There are other ways through which we keep spending money without making any effort to track them. The idea is that everyone should know how much spent in a period.