Every day, ads work hard to break down our resolve. Even if you’re determined to handle your finances well, spotting the latest gadget can make you feel like it’s something you can’t live without. But after using it a couple of times, it just ends up gathering dust in storage.
Picture this: you visit your favorite store during a huge sale. The temptation is real, right? You leave with several great deals, only to realize six months later that most of them still have tags and are sitting unused in your closet. Sound familiar?
Even with the best intentions, we often fall for marketing tricks, spending money on things we don’t really need, and soon enough, they lose their charm at home.
So, how do we avoid these traps?
Before you buy something, ask yourself: would I still want this if I lost my job tomorrow?
Take a grocery trip, for example. You probably won’t regret buying essential food items. But that last-minute magazine or the toy your kid begged for might make you second-guess later.
When shopping for clothes, you might regret not the first few seasonal outfits, but the heap of unnecessary clothes bought on impulse. If you suddenly found yourself unemployed, a couple of new outfits could be useful for interviews, but a whole new wardrobe would be too much.
This approach helps you differentiate between needs and wants. You could also ask yourself, “Do I really need this, or do I just want it?” The tricky part is that we often confuse the two, like thinking home internet is essential. While it’s necessary if you work from home, many people can access the internet in public spaces.
Sure, not having home internet would be inconvenient, but is it absolutely necessary? Maybe not.
You don’t need to cut all expenses. But if you’re on a tight budget or want to pay off debt, it’s crucial to evaluate your spending. Would a job loss make you regret this purchase tomorrow? If the answer is yes, reconsider buying it.
Becoming a smart shopper and resisting persuasive ads is key to financial success. Initially, the money you save can pay off debts or build an emergency fund. Eventually, this extra cash can boost your retirement savings significantly. Saving an extra $1,000-2,000 a year might not seem like much, but over time, it can grow into tens or even hundreds of thousands.
You don’t have to be so thrifty that you don’t enjoy your money. Just make thoughtful choices about what you really want to buy, rather than being influenced by slick marketing.