Does this sound familiar? Payday comes, and the next day, it’s all gone, replaced by a mysterious pile of packages from marketplaces? This is called shopaholism. We’ve gathered some tips to help you avoid being left with nothing in the middle of the month.
Plan Your Budget Weekly, Not Monthly
When you get paid once a month, there’s a false sense of security. It feels like: “Oh, there’s still plenty of money in the account, I can spend a little on things I want…”
As a result, we end up spending it unwisely and are left with nothing by the end of the month. To avoid this, try dividing your monthly income into weekly portions and setting a spending limit for each week.
This way, you’ll get a clearer picture of your finances, and it’ll be harder to splurge on unnecessary items.
Set Aside Money for Impulse Purchases
Completely forbidding yourself from making spontaneous purchases is like going on a strict diet. Sooner or later, you might give in and spend everything.
Set a budget for sudden purchases in advance. Decide on an amount that you’re comfortable spending so that you don’t feel guilty later for overspending.
For example, you can save 3-5% of every paycheck into a separate account and call it something like “Coin for Wants.”
Turn Saving into a Game
This method helps trick your brain and makes financial literacy feel like a slot at the Vave Casino NZ or an arcade game.
For example, try playing the “1 Dollar” game. The idea is to save $1 every day. By the end of the month, you’ll have $30 in savings.
Another idea is to double the amount you save at the beginning of each new week. In the first week, save $1, in the second — $2, and so on for 52 weeks.
Don’t Buy Right Away — Look for a Cheaper Option
This hack will help you in two ways: you’ll find the item cheaper, and you might reconsider the purchase while you search.
If you’re buying from an online marketplace, don’t add the item to your cart right away — add it to your favorites first. If you forget about it after a while, it probably wasn’t something you needed in the first place.
Set Goals
People usually make a lot of impulse purchases when their money is just sitting around. Having goals can help make your money work for you. But these don’t have to be huge goals like buying a house or car. It’s enough to aim for something more achievable, like finally getting that new car.
“Lock” Part of Your Salary
If you can’t bring yourself to save, protect your money from yourself. Use strategies that will “lock” part of your salary away.
For example, create a separate account and transfer a portion of your paycheck into it on payday. Make a rule that you can’t withdraw money from that account until you’ve reached a specific goal.