energY

Let’s create a scenario. You are at the store just looking around for deals on some clothes for the summer. The amount of money you brought with you is $100. Your eye catches a pair of jeans you really like for $60 and even better is they are 40% off. So what do you do? This blogger says buy the jeans at the discount price but what do you do with the 40% that you saved? Do you spend it or do you save it? Let’s take a look at both sides of the argument.

Decision 1: Spend the 40% you saved. The Brightside of this situation is that if you came with $100 then you have at least 38 to spend on other items. If the goal was to find an outfit that you NEED then having that extra money will help you out in the long run. The bad side to having the money you saved is the high likeliness of impulse spending. Establish a clear line of what you NEED and WHAT you want is important to do before going into a purchasing situation.

Decision 2: Save the 40%. By saving the money you didn’t spend that day you will begin to develop self control and have a better understanding of how to keep your spending habits in check. On the other hand, if you use that money to find other NEEDS, which possibly could also be at a discount, then spending it is the way to go. Getting more for your money can be smart decision.

Did you get the big secret? By establishing your NEEDS and WANTS before you go into a spending situation will help tremendously. The people that know what they need to buy before going into a mall or grocery store end up spending less because they do not indulge in frivolous spending. Whether you are buying food, clothes, or entertainment it is all about knowing what you want to buy and what you need to buy.

Tip for impulse buyers: If you know you only need 1 pair of jeans that will cost $60, than only take out $70 to include taxes. The reason for this is so you will not use your card for other items and go out of control on spending. Taking only the cash you’ll need will keep you from blowing through all of your money.

If you have any questions fell free to drop us a line!