Finding the Keys to Successful Spending

For a large amount of population, spending money is cooler and more pleasurable than earning it. It is difficult to inform or advise anyone, what to and where to cut the spending? For that purpose, this blog includes the general advice how to successfully spend the money in day to day life.  Spending imprudently, can add burden on the earned income and can increase the future need to continue working. The four keys to successful spending is as follows:

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1.        Living within Means

      “Spending too much is a relative problem” (Tyson 98).  The writer further explains with an example of two people who spend almost $40,000 a year but still have a very different financial conditions and status. The reason is that one spender earns $50,000 a year and saves $10,000 annually. However, the second spender earns $35,000 a years and owes $5000 after a year as debt from his/her credit card or spend money from the savings, saved prior year.

     Moreover, “Don’t let the spending habits of others dictate yours” (Tyson 98). Try to avoid hanging out with friends or relatives which spend a lot at shopping. Also do other activities besides shopping with them. Furthermore, if you have to go out with them, go with limited cash in pocket and leave the credit or debit card at home. This tip will help to avoid spending incautiously.

     2.    Looking for the Best Values

     It is a good practice to look for a high quality and the low price in a product. Always do the calculation for the long run. At the end of the day, the product which cost less with good quality, is the one which need to be bought.

     A good example for this key is when deciding between two used cars, which are Solid Sedan for $12,000 and branded sports car for 10,000. The amount of both cars shows that branded sports car will be cheaper and will have a good quality. On contrary, over the years branded sports car will have higher insurance and maintenance rates than Solid Sedan. While evaluating the cost of a product or service always think in terms of total long-term cost.

     3.    Do not Waste Money on Brand Names

     It is beneficial not to compromise on quality. However, also do not be fooled by believing that high lined brand name products have a better quality and worth a higher price. Almost all big brands advertise their products a lot, which is costly for the company. All the cost of the advertisement is taken out from the consumer's products. Before spending for anything question yourself, is is a need or a wish? Can you survive and be alive without buying this product? This way it will be easier to decide on what and where to spend money.

      4.    Getting Money Back

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     Looking around the house will alarm us as many product which were once bought but were never used. It is time to return all of them and put some in money in the pocket. Before buying any product always check for the company’s fair return policies. Also, before buying any product, always check online the customer’s and original user’s feedback on that same product.

 
           It is not easy to cut down all the expenditures all at once but spending intelligently is the fruitful way to go.  The above four keys mentioned above, I hope will help readers to spend successfully.

Tyson, Eric. Reducing Your Spending, Personal Finance for Dummies. 6th ed. Wiley Publishing, Inc., 2010. 97-102. Print.