You feel hungry and head towards the nearest mixed rice shop. You could see the delicious variety of meat and vegetables, however, you walked away with a grumbling stomach. It’s the end of the month and you’re broke. Until your next salary comes in, you have to survive with bread, milk and Maggi. You sigh and promise to manage your expenses better next time.
Well, this time, you will! The situation above could be all too familiar to most of us and the common answer I give to my mismanagement of money is ‘end of month la, no money’. It took me the hard way to realise that it doesn’t have to be that way. With the right spending habits, I can still eat well even on the last day of the month.
So, here are 5 spending habits that I decided to cut out to manage my expenses better and I hope it helps you too!
1. Spending recklessly without a budget
It’s salary day and you feel like splurging because, well, YOLO! No.
After paying off my commitments (rent, savings, bills, etc.), I tend to think that the huge leftover sum is for me to spend however and whenever I want. There was no planning involved and if I felt like spending on two Baskin Robbins ice creams in a day, then so be it. It was unwise spending on my end and I had to rectify it.
I decided to get on a weekly budget habit. For example, I allocate RM100 every week for food. So, I try to cook or buy food within the budget and once I’ve finished it for the week, I do not add on to it and wait until the following week to start with the budget again. This helps me to see how much money I have left as a backup by the end of the month.
I know it’s difficult but when you can control and discipline your spending urges, it would greatly help you to save money and develop a smart consumer trait.
2. Going shopping with no list at all (not even in your head)
There are just a few things on my mind so there’s no need for a list anyways. Wrong.
I am guilty of this and I’m sure most of you are too. I’ll always have a few things in mind when my salary comes in and I do not write them down because it’s a waste of time. Unfortunately, I realise that I am wasting more money by sticking to this habit. As I pass by different aisles in the supermarket, my brain chimes in ‘Need that! Want that!’ all the time.
Once I started to list down my monthly essentials, I realise that it not only makes it easier to shop but it also reminds me that, ‘If it’s not on the list, it’s not to be taken.’
Making a list is super easy, and what's more with the power of a digital notepad. Just key in quickly what you need before heading out. As simple as that!
3. Swiping your debit/credit card here, there, everywhere!
In recent times of technology and the pandemic, it is easier and safer to go cashless with debit or credit cards and it was making it easier for me to spend money.
Most of the time, I’d hardly have cash in my purse with the mindset that I will not spend if I don’t have hard cash. Unfortunately, that is false because I still end up buying something as long as they offer a cashless option (which is pretty much everywhere!).
Finally, I decided that enough is enough. Although it is old-fashioned and requires more work, I chose to carry cash in my purse and use that instead of swiping my card. It was difficult in the beginning but over time, I realised that my spending has reduced whenever I don’t go cashless. Hopefully, when I have better management of my spending, I can go back to being cashless but responsible.
This is another hard habit to break but you have to be strong-willed. Before giving in and taking out your card, just sleep on it first. Most of the time, you’ll realise that the next day, you either forgot about it or don’t need it at all.
4. I don’t know where my money went
Every month, I spend time frowning and thinking about where my money goes until I have barely enough to survive at the end of the month.
As someone lazy to write down grocery lists, it was an even lazier task to write down my expenses to keep track of them. Even with a mobile app for financial planning, I still did not key in my expenses and when the question comes, ‘How can you not have money? What did you spend on?’, I go blank and embarrassed that I have no control nor memory of what I purchased. Honestly speaking, this is the worst when it comes to managing expenses because you would not realise the chunk you’re spending on.
Hence, I decided to cut out this habit and started being accountable. I use my mobile app, Toshl to keep track of my spending and check the balance every day. You can also find an app or a way to track your expenses and diligently key in every time you spend money. At the end of the week or month, look back and analyse which spending was unnecessary and needs to be cut off.
5. Every day is a self-reward day!
After working for a whole month, it can be demotivating if you don’t get yourself anything as a reward from your salary. After all, you have put in your time, effort, OT and more to earn the money you are receiving.
But, not every day is the self-reward day, you know. I used to treat myself at least three times a week with something, be it clothes, desserts, accessories and more! It definitely felt good at that moment but when I finally need to buy something in need, for example, a new bag to replace the old, torn one, I am broke. I can’t even buy for the sake of a needful reward because I was busy spending frivolously before that.
Now, I have set up a 12-month plan for what items I want to buy as a self-reward and have been sticking to it for two months. For example, in January I bought myself a new dress and in February I decided to get five books. As much as I want to get another pair of shoes, I’d have to wait until next month.
This is what I do, so you can follow this too!
In conclusion, when I learnt proper finance management and cut out these habits, I realised that I never had to go hungry on the last day of every month. I’m sure you’d like that too right? Just keep in mind that healthy management of money is crucial, especially as a young adult, so let’s work towards it!
Vinothini is a content creator under the Newswav Creator programme, where you get to express yourself, be a citizen journalist, and at the same time monetize your content & reach millions of users on Newswav. Log in to creator.newswav.com and become a Newswav Creator now!
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