Spending Money is the easiest thing to do, but spending money wisely is another matter altogether.
Alexandria Blaelock, author of Holistic Personal Finance: How to pay for the life you want says “Like so many other personal issues, there’s a lot we can learn from business about making good decisions and spending money wisely.”
Here are Blaelock’s tips for spending money wisely :
- Learn about purchasing: Generally, only suitably qualified and experienced people can buy goods on behalf of businesses. People who know how to manage stock levels, negotiate favourable deals and understand market conditions. Learn more, and consider your purchases carefully.
- Create a Vision of your future: Use the life you want to lead as a guide for your spending. For example, if you want to be healthy, don’t buy junk food.
- Develop a Purchasing Plan: Plan when to buy the right quantity of goods at the right time. Not so much so early that you have to store and maintain a huge backlog. Or so late that you have to pay the asking price.
- Don’t decide solely on price: Consider what you need from your purchases. How long will you need it for? Do you need something extra heavy duty? If so, then the cheapest product is unlikely to meet those needs – you may be better to pay more for something more durable.
- Leave some wiggle room: Life is not a perfectly smooth progression. There will always be things that go better or worse than expected. Where possible, build in contingencies to help manage them.
Alexandria’s tips for spending money wisely will help you take a longer-term strategy with your money as well as your life.
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