There are good reasons why everyone should be worried over unplanned spending besides creating holes in the finances of individuals and families. When an individual is disposed to reckless spending, saving and investing become pretty difficult.
A life style of zero savings and investments does not guarantee the wellbeing of any family. If anything, it leaves a family at the mercy of the vicissitudes of life, a bleak future.
To avoid this scenario, there are personal finance attitudes an individual is expected to imbibe and put into practice consistently. When the practice becomes an attitude, the better for saving and investing to guarantee a good future.
1. Practice self-control to avoid making a quick decision to buy something just because you saw it on display. Vehicles, telecommunications gadgets, and ostentatious commodities can be tempting.
Technology has become so advanced that steady improvement on same product leaves individuals hankering after new models. Resist the temptation else you will keep buying as many models as there are improvements and innovations.
2. Research before you buy to be sure you are getting a good value. With every big purchase, first look into the quality and the reputation of the product or service you are considering, to be sure it serves you the purpose for the purchase.
Read “reviews” in magazines or respected websites. Talk to knowledgeable people you trust. Check other stores or go online and compare prices. Look at similar items. This is known as “comparison shopping”, and it can lead to tremendous savings and better quality purchases.
3. Keep track of your spending. This helps you set and stick to limits, what many people refer to as budgeting.
4. Think “used” instead of “new”. Borrow things (from the library or friends) that you do not have to own. Pick up used games, DVDs and music at “second-hand” stores around town.
5. Take good care of what you buy. It is expensive to replace things. Think about it: Do you really want to buy the same thing twice?