A high financial IQ is not something that everyone is endowed or blessed with. We all love the feel of cash in our hands, to glimpse at the wad of cash in our wallets and above all, spending money. I mean, who doesn’t like the finer things in life that money can accord? While it’s true we all want the finest things in life, we don’t necessarily need the items we spend our hard earned cash on. We don’t need to buy designer clothes on a daily basis or to buy every new gadget that hits the market. The fact of the matter is that a lot of people know how to make money but are clueless on how to save and ultimately spend it in the right way. So how do you save money if you are a spendthrift or shopaholic?
Admit that you have a problem
The first step is admitting you are a shopaholic or a spendthrift. If you are in denial, there is no way you will change your circumstances and save money. You will continue making money and spending it with the same effort you made it. Realizing that you have a spending problem is the first step towards developing a saving habit.
Open a savings bank account
When you make up your mind that you need to be in touch with your frugal side and stop being a spendthrift, it’s time to make real your resolve. Of course, you are not going to stuff money under the mattress as was the case before banks or financial institutions became mainstream. Pick a bank you like, speak with a bank representatives on the features of the savings account you wish to open and commit to saving a percentage of your money monthly.
Have a clear line of demarcation between your needs and wants
The truth of the matter is that you cannot entirely abstain from spending money. Yes, you can cut down on buying new clothes, going out every night but you can’t run away from fixed expenses such as electricity bills, rent, water bills, cable bills just to mention but a few. The key to saving money even if you are a spendthrift is to draw a clear line of demarcation between your needs and wants. For instance, you do not need to upgrade your cable to the premium package when you are never home to watch television. Differentiate your needs from your wants.
Develop a strong resolve
We live in a world of TV commercials everywhere and the temptation to spend might be high. As a spendthrift, you need to develop a strong resolve. Do not just be easily swayed to own the latest smartphone in the market but control yourself. Chances are that you will see people with nicer things and you might be tempted to take a dig and get yourself the same things. However, you need to develop a strong willpower and learn to say no.
You cannot save money without a clear roadmap of what you want to achieve. Set short or long term goals for saving. What do you want to achieve with the money you are saving? Write down your goals and keep tabs on them. For one, you could endeavor to go out only once in a month or use energy saving bulbs to cut down on electricity bills and so on and so forth.