You don’t think a small purchase makes a big dent on your finances. This might be one of the most costly mistakes you’ll ever make. Small investments, when done frequently, can leave you in a mountain of debt with limited choices to help you get out.
It’s essential to pay attention to where your money is going, and if you’ve already started accumulating debt, work on actively eliminating them.
How Often Do You Treat Yourself?
You deserve to spend your money on yourself. You worked hard to earn it, so it makes sense that you’ll want to reward yourself. When the job or position comes with enormous sacrifices, the urge is even stronger to treat yourself for getting this far. However, you should still be conscious of how much you’re spending on these splurges. You’re rewarding yourself, but if you’re using most of your salary for extravagant purchases that mean you will not have enough money left until the next paycheck, you’re only burdening yourself with debt. Sure, title loans in Boise can be a lifesaver, but you also need to be responsible; otherwise, you will be stuck with debt that earns hefty interests over time.
The Small Trinkets
You’re not prone to the expensive purchases. Your weakness is that extra snack or afternoon frappe. You think it’s not a big deal because you don’t do it every day. However, depending on the frequency of these occasional splurges, you might still be racking up a considerable sum. It’s not a problem if you have an allocated budget for your miscellaneous cravings, but if you’re on a tight budget, that venti drink could have contributed to your energy bills or transportation budget. Try computing how much money goes to your pizza or burger cravings. You’ll realize the gravity of the situation if you look at the receipts and add up the costs.
That Aspirational Outfit
Shopping is fun, and it can improve your wardrobe significantly if you choose the pieces to purchase wisely. You don’t need to buy everything at once. Slowly building an evergreen wardrobe is better than buying fast fashion pieces that will only last you a handful of wears. However, a lot of people spend too much on shopping because of the aspirational outfit they’re trying to build.
Consider a jacket that you think will look good with a bag you saw in another store. None of the items are in your closet right now, which means when you buy the jacket, it won’t improve your current wardrobe. You still need to get the bag. The more effective form of shopping is considering what you currently have in your closet and thinking of updating the looks you can make with them. If you have a pair of jeans that you haven’t worn in a while and you saw a pair of shoes that will be perfect with them, when you buy those shoes, you already have the look you want. There’s no need to rely on your credit card to purchase an entire outfit just because you think they will all look good together when you already have items in your closet that you can use as the base.
How much attention do you give the small and unplanned purchases you make? You think they don’t hurt your wallet, but that couldn’t be further from the truth.