Whether it’s in business or our personal lives, we all need to be aware of the amount we’re spending and if we’re purchasing items we can actually afford. Spending money is an easy task, especially with contactless credit and debit cards making life a lot easier when it comes to making transactions.
Over the past year an unprecedented amount of people have been made redundant or had to be placed on the Furlough scheme, which for many, has meant a reduction in their monthly income. Whether you have been in this position or not, it should have made it clear how important it is to be wise with your finances and not spend beyond your means.
With the effects of the previous year taking its toll on bank balances across the nation, Galahad & Co have shared some important questions to ask yourself before spending money. We have selected three of the six points shared by Galahad & Co and more details can be found below.
How Will the Purchase Affect My Budget for The Rest of the Month?
It’s a common occurrence to make impulsive purchases when we have just been paid. It’s easy to justify making large or multiple transactions when your bank balance is looking rather healthy, but it’s important to think about the purchase before committing to it.
If you feel like you need or want to spend money at the start of each month, then it’s wise to create a plan of your outgoings for the rest of the month. By doing this, you’ll then be able to see how much the purchase will affect your bank balance later in the month and if you can actually afford to spend the money.
If The Purchase Is Essential, Can I Find It Cheaper Elsewhere?
Whether it’s when doing your weekly food shop or browsing online for a new car, it’s important to always shop around to try and find the best deals. Every industry is extremely competitive and brands will do all they can to secure you as a customer, so it’s crucial you use this to your advantage.
If you need to make a purchase, then start by browsing different shops and websites to try and see if you can get a better price elsewhere. It’s also a good idea to factor in seasonal sales and the likes of Black Friday, as you can often grab a bargain during these times.
Will I Still Want to Make the Purchase in 24 Hours Time?
More often than not we find ourselves buying items which we don’t need, like clothes for example. A good question to ask yourself before making a purchase is whether or not you will still want the item in 24 hours time. If you’re browning a local store, then leave the item and have a think overnight whether you actually need it or not.
We’re all guilty of impulsive buying and although it’s not always a bad thing, it’s important that we all become more mindful with our spending. We want to know if the tips we’ve shared will change your spending habits in the future. Let us know on social, using #MindfulSpending.