A Discourse On Lowering Expenses And How To Save More
Why do we overspend? And why can’t we save?
These are not easy to answer.
But the answers to these two questions can reveal many things about our thought process, character, social well being, livelihood, and many other financial issues depending on our personal life..
I hope by reading this post, you will be able to understand your financial mistakes and take suitable measures to improve your financial standing.
Without any further delay let’s discuss the several ways to lower expenses and do more savings.
What compels us to spend more and a discourse on lowering expenses:
We usually overlook the factors that trigger our spending habits, because we believe in momentary rush of happiness than long term satisfaction.
Logically, when we buy any item, we go through a mental flux of need and want.
There are things we need, and things we want.
Most people don’t understand this thin line of difference between need and want. Probably this is where the whole decision making goes wrong!
Psychologically, we get a good vibe, when we buy any item that our heart desires. But little do we think about the importance of such an item in your life.
On the other hand, you can totally argue that should we not have desires being a human? My answer will be “Sure, why not”, but we should not cross our limits to chase our desire. Remember, a desire untouched is a fantasy!
Emotions and factors that forces you to overspend, and measures you should take:-
- Competitive mentality and Envy:
This is something, that can make you a big time sufferer.
Practically there’s no point in running into an competition with your friends and peer groups. ‘Envy’ is the first thing you should cut down.
Not everyone can have everything. If your friend gets the new gaming laptop, it doesn’t mean you too should get one. Believe in the limits of your financial strength.
Still if you think that you should keep on competing with your buddies, or else they won’t give you much importance, then I need to tell you, that get better friends, because they really don’t deserve you!
- Getting lost in momentary happiness and no control over greed:
After Envy, Greed is the next big sin, that ruins well being and will never let you be happy.
I really wonder how to help you understand these ethics only with the help of such a small post.
These topics definitely need more attention and a tête-à-tête conversation!
Greed or the uncontrollable desire is really important to pay attention to.
Control the urge to buy and possess whatever you see.
- Bipolar Disorder and other mental illness:
This is something completely psychological.
When someone is a patient of bipolar disorder, there are instances when they find investing huge amounts might act as a good future prospect.
Examples of such are buying a new home, investing in golds and jewellery, planning to start a family, buying expensive gifts for someone and so on.
When the patients go through the phase of manic depression, they believe making such big decisions might change their life forever, and they can live happily ever after.
But seldom are such plans effective.Hence it is advised toknow the early signs of bipolar disorder and get immediate help from a reputed psychologist and a qualified psychiatrist.
- Credit and Debts:
Debt means an obligation.
Life is hard when you have too much of debts around you. The pressure is intense and it only forces you to take up more credit so as to cope with your existing debts.
The biggest of consumer debt that’s bothering our nation is the credit card debt.
But the citizens are not realizing, that every purchase they make with a credit card, has to be paid back with interest, and at the day they are paying more than they should have, actually!
So grow good habits to become debt free. Say for example, you can only use credit cards for emergency purposes, and use cash for day to day expenses.
A discussion on saving money:
My all time suggestion for saving money is investing in mutual funds and bonds.
But you should also not forget the certificate of deposits and obviously your employer sponsored retirement plans.
As you can see, day by day it’s getting hard for us to manage our costs due to inflation. So having a diversified savings portfolio is very important to tackle future expenses.
You can also try out the very convenient backward budgeting, to improve your savings. The backward budgeting is very interesting, and flexible.
Every month on your payday, you keep aside a certain portion of your salary for savings. Then with whatever’s left you carry on with your expenses.
It is called backward or reverse budgeting, because usually we first spend, then with whatever’s left we do our savings. But here we just do the opposite.
I really hope, that this post was worth your reading time. Try to keep up with all the points discussed above to lead a happy financially stable life.
Don’t let any problem go unnoticed. We now have financial therapists to help you out with these minute debts, savings and other planning related issues. Treat them before it’s too late.
Wish you all the luck in your life!