Dave Ramsey couldn’t be more accurate when he said ‘we buy things we don’t need with money we don’t have to impress people we don’t like’.
We always seem to be worrying about our finances and no matter how much we earn, it always seems to be not enough for our needs. But are we actually spending the money we have on our needs? Or we are so confused now that we are unable to distinguish between what we need and what we want? Are you sure you are making smart choices about your spending?
Here are 11 points that I have compiled that will tell you how mindlessly you are spending your money and it is the little spending that makes the big impact in the end.
1. Expensive coffins meant to be buried anyway
Coffins can be expensive and one of the worst ways of spending money. While emotionally, you might think it is a way to show your compassion towards the dead, logically, there is no difference between a simple coffin and an extravagant one. Both fulfills the same purpose.
2. Big fat weddings
People have actually forgotten the true meaning of a wedding. Modern weddings are largely focused on guests and maintaining statuses which has skyrocketed the costs of weddings. It is no more about blessing the young couple but to showcase as much extravagance as one can afford. Celebrating the occasion is understandable, but people just take it too far.
3. Cigarettes, a payment made to die quickly
Cigarettes are just like slow poisons. Some people take cigarettes just to show others that they are cool or badass and one day they are totally addicted to it. They are actually wasting their money to waste their health. If a packet of cigarettes costs around Rs 100 and you need one in a day, in a month, you are spending at least Rs. 3,000 if not more. Rs. 3,000 is not a small amount. You can use it to sponsor a child. Also, in the long run, the medication you are going to need because of it might make you bankrupt before you are dead.
4. The menace of packaged water
Carrying a traditional water bottle with you while you travel or take a stroll nowadays is against the fashion and everybody seems to be obsessed with packaged drinking water. People also look down at those who carry their own water bottles as if they have committed the unforgivable sin. But they don’t understand that they are encouraging not only unnecessary spending, but also are contributing to the ongoing environmental crisis.
5. A newly launched smartphone that is basically the old smartphone
There are phones that are launched every year with minor improvements that would have gone unnoticed if not the sellers had screamed about them. And people seem to pay whooping sum of money to buy those newly launched phones. They need to ask themselves whether they are making smart choices? Whether the thing they are buying worth the cost? Whether they are basically buying the same phones?
6. Eating outside
Making your own food is not only cheaper, it also is healthier. But people seem to not care this simple fact. Eating outside is expensive. It is as simple as that. The amount you spend on an average meal outside can buy you at least three meals if not more if you take the burden of preparing it yourself.
7. Throwing away food when you can eat it later
People throw away their leftover food particularly while eating out in the restaurants because they think packing the left over food and taking it home would appear odd. And such petty thoughts focused on what others will think than what seems like a logical thing to do is leading to an appalling amount of food wastage every year. First thing first, that’s your food. You paid for it and you have every right to take it home. Don’t waste money like that.
8. Branded clothes when there are perfectly great products out there and costs much less
There is a general opinion that clothes that are sold with a tag of a familiar brand are better than others sans the tag. While in some cases that might be true, but largely, there might not be any difference between the product of a familiar brand and the product of an unknown brand that costs less than half than the branded ones. The same rule applies to other products too.
9. Buying things that you don’t need just because you have a coupon
Every once in awhile, we fail to save ourselves from falling to this trap of the marketer. They give you a coupon which enables you to get a discount next time you make a purchase or they mail you a code that will earn you a deduction, you jump on it. You don’t care whether you actually need that particular product you are buying. You just want to utilize that coupon. And every time you do that, you are losing money and the marketers are winning.
10. Buying bigger houses than you need
We often end up buying a house or renting one that is more than what we need. Doing so, while we end up spending more money than what was the need, we also pave the way for more expenditures in the future since the bigger the house we buy, the higher is the cost of maintenance of it.
11. Jewelry and precious gems
Jewelry and precious gems are the result of our greed. Not our need. When we are spending on these, we are actually feeding our ignorance and greed. We really don’t need so much of jewelry. Wearing less jewelry is always the smartest choice.