How to Stop Making Poor Spending Decisions

by Miranda Marquit · 3 comments

spending choices
One of the most difficult things in life, for a spender like me, is to stop making poor money decisions. I’ve made a great deal of progress in recent years, reducing my spending, and looking for ways to put my money to better use though.

In order to stop making poor spending decisions, it is vital that you evaluate your habits, and then make the effort to change.

make better spending decisionsFigure Out Your Priorities

Many of us make poor spending decisions because we haven’t figured out what our priorities are. When we don’t know what is important, it is easy to make poor decisions and squander our resources. Instead of continuing to spend on the items you consider unimportant, take some time to figure out your financial priorities. Once you pinpoint what is important to you, you will have an easier time to stop spending on the trivial things.

Have a Purpose for Your Money

If you don’t have a purpose for your money, it’s easy to just let it slip away. One of the reasons you are likely making poor spending decisions is due to the fact that you don’t have a better purpose for your money. Instead, think about what you would like to accomplish in life, and how your financial resources can help you do that. Would you like to help the local food bank? Do you want to travel during retirement? Are you interested in helping your child pay for college? Decide what you want your money to do for you. When you have a purpose for your money, it is much easier to curb the spending that doesn’t contribute to that purpose.

Find Contentment in What You Have

Another reason why it’s so easy to fall into the spending trap is due to lack of contentment. Many of us don’t recognize the good things we already have. It is tempting to spend money in order to fill a void that we imagine in our lives. Instead of spending, though, try to look for contentment in what you already have. Consider your current situation. Do you have what you need? Do you have a loving family? Are you reasonably healthy? You might be surprised at the wealth you have already. If you can focus on the things that you already have and enjoy, you will focus less on spending money to get things that might not make you happy.

Replace Costly Things with Less Expensive Items

You can also spend wisely by looking for less expensive alternatives. From the software you use, to your TV service, to your insurance policy, there is something to be said for looking at alternatives. There are free versions of different software programs that can save you money, and the Internet offers many entertainment options for much less than cable or satellite TV service. You can also consider whether you might prefer generic brands of food and clothing. Shop around for less expensive insurance policies and phone plans. Look around and see what you could be doing differently. After all, if you don’t have to spend the money, why should you?

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  • Julie Grandstaff says:

    All good points. If you give every dollar a job, nothing will slip through your fingers, and there is nothing better than gratitude for what you have to keep you from buying that next new thing.

  • Danielle Ogilve says:

    I agree about having a purpose for your money. It’s easy to spend more when it’s not allocated to something with greater purpose.

  • DNN says:

    I have to admit I’m one of those people that had that poor habit. But through a willingness to change my mindset, I’m doing the transformation work to adapt to new healthy habits.

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