Quote from: Fortify on Today at 07:04:25 PM

Quote from: gunhell16 on August 20, 2023, 05:05:08 AM

Isn't it stressful when we spend more than expected, right? especially if we follow a budget, having a smart spending habit is a good way to avoid such situations or events.

1. Make a realistic budget
In budgeting it is important that we consider everything. It should be realistic and achievable, It cannot be said that the budget is only 20$ for a week for food if you are 8 people who will eat at home. Plan what to eat every day and budget for it. Write down all the ingredients or how much to buy and how much it will cost in pmashae or gasoline if there is a car. Do everything with consideration and do it consistently.
Stop yourself from buying things you don't need, like buying coffee at starbucks when you can just buy 3 in 1 sachet coffee that just tastes like coffee. Because if we cannot prevent such expenses, include them in the budget.

2. Find out what triggers the cost
It's important that we know this if it's stress, boredom, pressure from friends, need to follow the trend and so on. It is important that we have discipline in these things if you want to avoid overspending. For example, if you're bored, you hang out online shopping at Lazada, Amazon, and others, this habit should be replaced with something more productive, such as cleaning the house and others where you can avoid it and do something good.

3. Break down luxury expenses
Try to list the things you have spent and separate the luxury and the things you have spent. It is important that you know what is really needed and the word I deserve it.

4. Make the 24 hour rule
This rule helped me when I was building in this way. Because when I want to buy something, I put it off for 24 hours, and during this time I learn how to assess these things. Usually the excitement we experience disappears immediately after a few hours. You imagine the sacrifices you will make when you accomplish them. Like the small savings you have or sometimes we will even borrow the money we will use here. At least in this way we can avoid impulsive buying or bursts of emotion.

5. Set a budget
Allocate a limit on expenses, know all areas of expenses from food, rent, electricity, water, shopping and other things related to spending. Once you set all of your spending limits, make sure to follow them and do it because everything will be ignored if you don't do it.

I hope this somehow helped us and the community here on the forum.

You have to be careful with things like luxuries and determine what you really want from life. If you want to retire a bit earlier and can think that far ahead into the future, then that expensive car that you have to finance for five years will be eating away at money, paying a loan interest rate, that instead could have been invested and tripled itself over 20 years. Some people are happy with a cheaper runaround that will get them from A to B, but others consider driving to be their passion and may actively make that decision which should not be faulted. Same with anything else, that 5k one week river cruise could be nice, but for one thousand you could probably get a lot too.

If luxuries thing like Gold and diamond or whatever precious which does have that appreciating value then i could say that it would be worth it, but if you are that coming after into those luxuries which turns out to be a
liability like luxury cars and other similar things then it would really be just that creating that kind of potential problem which would really be affecting your finances if you arent really that mindful nor really that wise
in regarding with your spending. Discipline would really be the key and if you arent really that mindful about on things around on how you do spend and on how you do allocate your finances then expect on what comes next. I agree on most words of most people on here that better set your priorities first before among others on which leisure and luxury things or vacation or travel should be on your least priority. They can wait and
what you should really be in concern about is on how you should really be that gaining more income source on which you could really be able to support if you are really that kind or type of spender.