Do you have “small luxuries”? You know, those things you think you need to keep you going for the day. Those small things you have to buy to cheer you up. Like for instance, do you buy expensive coffee before you go to work? Buying lunch or treating yourself with treats that you don’t really need just because they make you “sane” in your overly stressed life? Those small luxuries are what’s keeping you broke.
Remember, you have future needs too
You need to make the conscious decision to put a stop on giving in to momentary cravings. You’re probably thinking that it’s just another P160 for a branded coffee or just another P120 for a lunch out. Those amounts always add up. And before you know it, you’ve actually been cheating on your savings and you’ve unnecessarily spent thousands.
You need to start saving
Your savings is your investment to your future. Having savings should be the luxury you’re after. It should be your priority and not the cheerful feeling you get when you buy those small luxuries.
Do you even have an emergency fund? Stop using your credit cards or personal loans as you source of funds during emergencies.
Look for alternatives for your craving
If you can’t divert your cravings, try looking for cheaper alternatives. Try the brewed coffee from a convenience store which only costs P20. Or that cheaper Japanese restaurant. Swallow your pride.
Have a daily budget
You always tell yourself that you don’t know where the money is going. But the truth is you do. You just don’t realize how much those small luxuries are affecting your finances until you have a daily budget. Plan ahead on how much your going to spend on a daily basis and stick to it. The less unnecessary things you have on that list, the better.
Stop “rewarding” yourself too much for small achievements
Oh you had a rough day at work? You had to work overtime? And now you deserve a foot spa and a back massage? No! Go home and sleep it off.
Fix your mentality about borrowing money or using credit cards
When you borrow money or use your credit card to buy a small thing for yourself, you’re actually spending the money you haven’t earned yet. This is highly irresponsible for your finances. Don’t buy things you can’t afford or better yet learn how to save for it.