Cut Down on Mindless Spending

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Our finance expert agrees there are two types of money personalities: savers and spenders. If you're a spender, you may want to adopt a few habits of savers and pay more attention to mindless spending. Rubina Ahmed-Haq shows us how.

Cut Down on Mindless Spending

There are a few telltale signs of a saver, whose habits we could all benefit from adopting.

Future Funds Secured

Savers always put money away for future expenses. For example: kids education, bigger house, luxury vacation or a new fridge. They are forward thinking when it comes to money. Research shows if you save for a big-ticket item or event you are more likely to get with out going broke.

Just water, please!

Savers recognize that almost half the bill at a restaurant goes to alcohol. They fill up on tap water and then indulge in only a couple of drinks to keep their tab in check.

Wearable Wardrobe

Savers get creative with their wardrobe and buy quality items that will stand the test of time. They like to invest in pieces that will work for many different scenarios instead of just one special occasion. We've all heard that most people only wear 10 percent of their wardrobe and savers keep that stat in mind before buying new pieces.

Just keep on saving

Savers don't have a savings cap. For example: Putting money away every time they get paid is a priority even if they have thousands more saved than they need. Saving is a habit that takes time to build so stick with it! If you break the habit it's always hard to get back on the wagon.

Follow the three Rs

Savers follow the three Rs: Reuse, Reduce, Recycle. This helps them live a minimalist lifestyle and not get too caught up in the consumer cycle. Think about purging items you don't use on a yearly basis and upcycling everyday items to make them work for you in new ways.

Check your mindless spending!

Savers are more aware of mindless spending traps and try to spend money on things that bring conscious joy or reward. Take a look at some common mindless spending traps. Anything here hit home?

Bottled Water

Total in one year $100 per person

ATM

Total in one year: $360 per bank account

Parking

Total in one year: $1,040 based on $20/week

Second Car

Total in one year: $7,450 based on a commuter

Chewing Gum

Total in one year: $45 based on 300 sticks each year

Gym Membership

Total in one year: $660 based on membership costing $55 a month (that is the average)

 

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