Strategy #6: Challenge your perception of money.
Smart spending means understanding your needs versus your wants. It's critical to recognize the role that advertising and other elements play in influencing your financial decisions. Creating positive behavior around money is the most important strategy you can employ to be successful at budgeting.
By taking the time to examine your spending habits (such as by recording all your expenses for a short period), you can challenge yourself to consider alternatives. Ask yourself:
- What would happen if I didn't purchase this item? If nothing, eliminate it.
- Could this purchase be delayed? If so, delay it.
- Am I considering a purchase because of an advertising message that's making me feel needy? If so, resist it.
- If I need something, is the less-expensive brand good enough? If so, choose it.
The bottom line is that having more control over your spending is a much more effective and enduring strategy for solving financial problems than simply having more money.