Q: With inflation soaring, I want to spend my money in the best way possible. When paying for various everyday and occasional purchases, should I be using cash, credit or debit?
A: There’s a time and place for everything. Some purchases should be paid for with cash, some with a credit card, and others with a debit card. Your lifestyle and personality may influence this choice as well. Let’s take a closer look at each payment method and when they should be used.
When should I use cash?
Between P2P payment platforms, mobile payment wallets and the growth of cryptocurrency, the world of commerce is becoming increasingly cashless. In fact, some consumers barely touch cash at all.
However, there can be times when you’d be better off using cash. First, some gas stations charge less per gallon when the driver pays in cash. The difference is usually modest, up to 10 cents a gallon, but with gas prices soaring, it can add up to substantial savings over the course of a month. Next, if you have trouble sticking to your budget when you shop, it can be helpful to take only the amount of cash you need and leave your cards at home. This way, you’ll be forced to stick to your budget. Finally, some small businesses, like food trucks or independently owned stores, only accept cash payments or offer discounts for paying cash.
On the flip side, there are many disadvantages to using cash. First, cash provides no purchase protection. Consequently, it’s best not to use cash for very large purchases. Next, cash leaves no paper trail and it can make tracking expenses difficult. It’s best not to use cash if you’re trying to get a clear picture of where your money is going. Finally, cash always carries the risk of being lost or stolen.
When should I use my credit card?
Credit cards are the double-edged sword of personal finance. On the one hand, credit card debt is one of the leading causes of consumer debt in the country. On the other hand, owning credit cards and using them responsibly is a crucial part of one’s financial health.
In addition to the impact to your credit score, responsibly used credit cards offer two primary advantages: rewards and purchase protection. Using a rewards card for purchases you’d need to make anyway, such as paying utility bills or subscription fees for a service, can help you earn cash back, airline miles or another reward. The second big advantage to using a credit card – the purchase protection it offers – makes it the ideal choice for paying for large purchases or when buying something from a newer retailer. Knowing you can always dispute the charge or even cancel it if the product turns out to be different than expected, can help you shop with confidence. In addition to these advantages, paying with a credit card and making on-time payments can help boost your credit score while making expense tracking easy.
Ideally, credit cards should only be used to cover fixed or steady payments, such as monthly bills, and for purchases you know you can pay for in full when the bill becomes due. It’s never a good idea to swipe your card for a purchase you cannot pay for today or within the next few weeks. Use your cards responsibly to ensure a healthy credit score and to stay out of debt.
When should I use my debit card?
In many ways, debit cards offer the best of both worlds. You can always track your spending by reviewing your checking account statement, and you generally can only spend what you have. This helps minimize the risk of falling into debt. In addition, if your card is lost or stolen, you can cancel it and/or close the associated account.
Debit cards can be a great choice for everyday purchases of any kind. However, since they typically don’t offer rewards or the same level of purchase protection as credit cards, they may not be the best choice for large purchases, or for paying for products from a new retailer.
Life is expensive, and you want your money to go as far as possible. Use this guide to help you choose the right payment method in every situation.
Your Turn: When do you use cash, credit and debit? Tell us about it in the comments.
Get ready for savings on big-ticket items this month! Retailers are looking to bring the crowds back after the big back-to-school storm has passed, and bargain prices are always a great way to attract shoppers. They also need to clear shelves before the holiday season blows in with its shopping frenzy. Add in the Labor Day sales that kick off the month, and it means big savings during September – but not on everything. Here’s what to buy and what to skip in September.
Buy: Mattresses and bedding
Mattress sales practically give Labor Day its awesome name, and for good reason. You can find crazy-deep discounts on mattresses this month at almost any retailer that sells them. Top off the deal with some bedding and bath supplies, which are also selling at bargain prices. Be sure to start comparison-shopping at least a week or two before Labor Day to snag the best deal. After all, if you snooze, you lose.
Skip: Halloween costumes and decor
Retailers might have you thinking Halloween is tomorrow, but you still have plenty of time to prep for Oct. 31. Though Halloween costumes and decor will hit the stores this month, it’s best to hold off on these purchases until October rolls around, as that’s the earliest you’ll start seeing scary-low discounts.
Since the days are getting shorter, it’s time to think winter! The holidays will be here before you can blink, and if you’re looking to grab airline tickets at a great price, you may want to shop for them now. The best deals on plane tickets usually show up eight weeks before the travel date, and for Thanksgiving, that means you’ll need to buy tickets in September. Look out for deals on tickets at the end of the month to save big on your travel plans.
Skip: Autumn wear
It’s too early in the season for slashed prices on clothing. Pick up some essentials if you must, but you’re best off waiting until October or November to shop for your complete autumn wardrobe at sizzling-hot prices.
Hold onto summer a little bit longer with some vibrant greenery. All summer plants, trees and shrubs will be retailing at dirt-cheap prices this month as garden centers make room for autumn and holiday plants. This can be a terrific time to upgrade your property’s landscaping with some well-placed perennials. You can also find some fabulous deals on summer flowers, though you may not have much time left to enjoy them.
Labor Day might bring some incredible deals on big-ticket items, but electronics aren’t among them. Instead, TVs, headphones, audio systems and more tend to see their lowest prices during Black Friday sale events. Wait just a little bit longer and you can snag a fantastic deal on an electronic item you’ve been eyeing for months.
Jeans are a hot item during back-to-school shopping. Come September, retailers will slash prices to unload their unsold inventory. Cash in on a great deal by shopping these sales for a new pair of denim jeans this month.
Buy: Beauty and skincare products
Early autumn is a great time to stock up on beauty and skincare products. As college students pack up to head back to the dorm and consumers pick up skincare routines, prices may have dropped over the summer. Look for price cuts on products like shampoo, body wash, moisturizer and all kinds of cosmetics from Labor Day and on.
It’s back to school, back to work and back to savings this month! Use this guide to know what to buy and what to skip in September.
Your Turn: Have you picked up any great bargains in September? Tell us about them in the comments.
[Now that you know how to spend mindfully, pay it forward, and regularly set aside money for savings, you’re ready to learn how to indulge in the occasional expensive treat–responsibly.]
Many people equate financial health with a life of deprivation, but this is far from the truth. In fact, living a life of true financial wellness means being happy with a lifestyle that is within your means, but does not leave you feeling like you are lacking. Like an overly restrictive diet, an overly tight budget is more likely to become broken.
On the flip side, financial wellness means spending your money wisely and learning how to treat yourself for less – or for free. It means money choices are governed by discipline, and not by emotion. And sometimes, it means telling yourself no.
How, then, do you strike a balance between the two?
Here’s how to indulge responsibly.
Live with a budget
The first step to financial wellness is knowing where your money is going and how much you actually have to spend. The best way to always have this information is to create and stick to a budget.
[If you’ve been following all the steps to financial wellness until this point, you’ve already developed and live with a budget. So you know how to stick to it. Let’s take a quick review of this crucial money management tool.]
Create your budget by tracking your spending for three months. Make a list of all your expenses, including fixed, non-fixed and discretionary expenses, and list your income in a parallel column. Tally up your totals and assign a realistic dollar amount to each expense. Going forward, be sure to only spend within the allocated amount for each expense category each month.
Leave room in your budget for “just for fun” purchases
As you work on building and sticking to a budget, be sure to leave room in your spending plan for the occasional treat. The exact amount will vary by income level, lifestyle and personal choice. However, choose an amount you can easily afford without feeling deprived.
To ensure you don’t overspend in this area, you can borrow an idea from the money-envelope system and withdraw the designated amount from your checking account at the beginning of the month. Place this cash in an envelope, and use it as necessary. When the money is gone, so is your “allowance” for pricey treats this month.
It’s important to note that the indulgences referenced here are spontaneous buys, or small purchases that aren’t part of your normal budget. Large purchases you have planned for and saved toward for months, or even years, are in an entirely different category.
Review your savings
Before giving yourself permission to indulge, make sure you are setting aside a percentage of your monthly income to savings. Savings should be an item line on your budget, with short-term savings like an emergency fund in a savings account, holding enough to keep you afloat for 3-6 months if you have no source of income. Long-term savings should be sufficient to support your retirement and any long-term savings goal you may have, like saving for a house or a luxury vacation.
Choose your “treats”
Everyone’s got their personal vices and their guilty indulgences. Take a look at where your non-discretionary money went during the last month or two. Highlight the more expensive impulse buys and hold them up to these questions:
Did this purchase bring me happiness or positive energy the day I bought it? Did that feeling last until the next day? The next week?
Did this impulse buy blow my budget?
Does thinking about this purchase now fill me with joy, guilt or something else?
If I found myself in the same circumstances today, would I make that purchase again?
Here, too, the answers to these questions will depend on your personal set of circumstances and lifestyle. Use the insight you’ve learned about your indulgences to help you make better money choices in the future.
Lose the guilt
Once you’ve decided how much you want to spend each month on indulgences you can afford, it’s time to let go of the guilt. If you’re spending responsibly and you’ve already fed your savings as well as your future, there’s no need to eat yourself up over an impulse buy you could have done without. As long as you’re keeping these just-for-fun purchases within your budget, and your choices fill you with happiness or positive energy, you can still maintain your financial wellness.
Your Turn: How do you indulge responsibly? Share your best tips in the comments.
If your business can use a shot of cash to help it grow, fund a move or to get through its slowest season, a business loan can be the right answer.
Here’s what you need to know about applying for a business loan.
Check your credit
Before you apply, check your personal and business credit health.
Personal credit scores range from 300-850. A score in a range of 580-669 is fair, 670-739 is good, 740-799 is very good and 800-850 is exceptional. In general, the higher your score, the easier it will be for you to qualify for a loan and the lower the interest rate you’ll have on your loan when approved.
Business credit scores are measured differently. Experian uses Intelliscore Plus as its credit scoring model, with scores ranging from 1 to 100. Equifax assigns each business a payment index score, which ranges from 0 to 100; a credit risk score ranging from 100 to 992 and a business failure score ranging from 1,000 to 1,880. The D&B score, assigned by the Dun & Bradstreet Corporation, ranges from 0 to 100. Finally, the FICO Small Business Scoring Service score ranges from 0 to 300.
If your personal and/or business credit scores are low, work on improving your credit before applying for a loan. Be timely or early with your bill payments, work on getting rid of debt and check your monthly credit statements for any erroneous charges.
Update your business plan
Most lenders will ask to see a current business plan before approving a loan. It’s a good idea to review and update yours so it’s ready to show a potential lender. The plan should include information about the loan, such as how the company plans to use the funds.
Be sure to have a comprehensive business plan to show a prospective lender. The plan should include details about how the company intends to use the funds, the anticipated increase in revenue and plans for repaying the loan.
3. Organize your personal and business documents
You’ll need the following documents and identifying paperwork when applying for a business loan:
Accurate monthly financial statements from the past two years
Any commercial leases
Business insurance plans
Current financial obligations
3 months of bank statements
Personal and business tax returns
4. Research potential lenders
A business loan is a big deal, and it’s best not to jump into the decision too quickly. Take the time to research potential lenders carefully, being sure to check each lender’s eligibility criteria, the average size of the loans they offer, their current interest rate average and more.
Consider applying for a business loan through a credit union. A credit union will offer you personalized service, looser qualifying criteria and a competitive interest rate. [Call, click, or stop by Advantage One Credit Union today to discuss your options.]
5. Submit your application
You’re ready to apply for a loan! With luck, you’ll soon have the funds you need to take your business to the next level.
Your Turn: What are your best tips for taking out a business loan? Tell us about it in the comments.
Title: Cashing Out: Win the Wealth Game by Walking Away
Author: Julien Saunders, Kiersten Saunders
Hardcover: 272 pages
Publishing date: June 14, 2022
Who is this book for?
African Americans who find it challenging to build their wealth despite following all the right rules.
Anyone struggling with money management and career growth.
What’s inside this book?
A roadmap to financial freedom that makes wealth possible despite a broken economic system.
A financial and career path that breaks free from corporate America’s rules so you can build wealth on your terms.
4 lessons you’ll learn from this book:
Which goals to prioritize at each stage of your career so you can plan for an early retirement.
How to talk about money with your partner without every conversation ending in an argument.
Practical strategies to grow your wealth without a large investment of time and energy.
Why the mantra of “Black Excellence” is an unsustainable form of motivation for building wealth.
4 questions this book will answer for you:
I’m following the same script as my white colleagues; why am I only seeing half the results?
Is financial freedom really within my reach?
Why am I always being passed up for career opportunities?
Do I have to sacrifice my time and mental health to maximize my income?
What people are saying about this book:
“Cashing Out feels like the talk you desperately needed from the big cousins you’ve always looked up to. It’s filled with gems about money, navigating your career and most importantly — relationships — from people who’ve done it successfully. You can literally feel the love and wisdom they’ve poured into every single chapter.” –Anthony O’Neal
“Read this book. Read it for the cool stories. Read it for the cool concepts. But mostly read it because it just might nudge you toward a far freer, richer and more rewarding life.” –J.L. Collins, author of The Simple Path to Wealth
“The ideas in this book have the power to change the wealth trajectories of Black folks everywhere.” –Jewel Burks Solomon
“An honest and encouraging approach, with a dash of tough love, to help you determine what it takes to be financially, emotionally and mentally wealthy.” –Erin Lowry
“Kiersten and Julien know their stuff, but they never put themselves on a pedestal. Instead, they nudge you along to your best financial life like your favorite older siblings, sharing their own vulnerabilities, acknowledging the many systemic barriers that exist, and never making you feel bad for your past choices.” –Tanja Hester
Your Turn: What did you think of Cashing Out? Share your opinion in the comments.
[Now that you’re managing your money well and you’ve even learned to share the gifts you’ve been given, it’s time to start perfecting the art of saving.]
“Pay yourself first” is a catchphrase that means prioritizing your personal savings above other expenses. Savings should not be an afterthought or an extra that only happens if there’s money left over at the end of the month. Putting aside money should be a fixed line on your budget that happens every month without fail.
Here’s how to successfully pay yourself first.
Review your spending
Take a clear look at your spending. If you already have a budget, this will be as easy as reviewing the column that lists all of your expenses, including your discretionary spending. If you don’t already have a budget, track your spending over several months to identify your primary expenses and to find the average amount of money you spend monthly. A budgeting app, like Mint or YNAB, can make this step super-simple.
Set short- and long-term saving goals
Before you start setting aside money each month, you’ll want to have a clear picture of your saving goals.
Short-term savings, or funds you want to be able to access in the near future if necessary, can be allocated to an emergency fund. Experts advise having three to six months’ worth of living expenses set aside in an emergency fund in case of a sudden, large expense and/or loss of employment. Some people also build a rainy-day fund, or a slush fund that can be used to pay for anything at all, such as a spontaneous vacation or a large discretionary purchase like a new phone.
Long-term savings should include funds you can afford not to touch for several years or more. Your long-term saving goals can include funding your retirement, as well as a downpayment on a home, a new car, a sabbatical from work or any other super-big expense.
Narrow down your short- and long-term goals until you have a realistic picture, then attach a number to each savings category.
Set a timeline for each savings goal
Now that you have a number for the amount of funds you want to save, you’ll need to determine a realistic timeline for meeting those goals. You’ll want to give first priority to your emergency fund, but at the same time it’s best not to neglect your future and to start saving for retirement today. This allows time to let compound interest work its magic. To that end, you may want to allocate the bulk of your monthly savings to your emergency fund until you meet your goal. Once your emergency fund is full, you can divide your savings more evenly between your short-term savings and long-term savings.
While you work through this step, you may want to reach out to an HR rep at your workplace and/or your accountant to discuss your options for a 401k, IRA or another retirement plan.
Calculate how much you’ll need to save each month
You’re ready to determine how much money you’ll need to put into savings each month to reach your goals by their deadlines. Take your total for each goal, and divide it by the number of months in your timeline. For example, if you’ve decided you want to have an emergency fund of $24,000 set up in four years’ time, you’ll divide $24,000 by 48 months to get $500 a month. This is the amount you’ll need to set aside each month to reach your goal in time. Do this for each of your goals.
As you work through this step, don’t forget to account for any interest you’ll accrue for your long-term savings. Also, remember to prioritize your short-term savings for emergencies and adjust your savings allocation once your emergency fund is set up. Without the funds to get you through an emergency, your savings can be depleted as soon as any unexpected expense crops up.
Automate your savings
Once you’ve got your savings plan ready to go, it’s best to make it automatic. You can set up a monthly transfer from your credit union checking account to your credit union savings account [or share certificate]. This way, your savings will grow even when you forget to feed them. Think of this money like taxes – it’s not actually part of your take-home pay, because it gets skimmed off the top before it even hits your wallet. But unlike taxes, all of this money (and the dividends or interest it earns) will land in your pocket one day, with some extra, too!
Monitor and tweak as necessary
Life is dynamic, and your savings plan should be, too. If you find the system you’ve set in place is not working anymore, you can always tweak and come up with one that better meets your lifestyle. If you find that you’re short on the funds you need for paying yourself first, consider trimming your discretionary spending in a budget category or freelancing for extra cash before lowering your monthly savings goal.
Congrats–you’ve mastered the art of paying yourself first!
Your Turn: Do you pay yourself first? Share your best saving tips and advice with us in the comments.
Q: Is it a good idea to pay for gas with a credit card?
A: On average, Americans pump close to 392 million gallons of gasoline a day. That’s more than a gallon for every American! Each day! With fuel prices spiking, you want to make sure you’re paying for that gas in the best manner possible. Many people reach for a debit card or cash when filling up on fuel, but there are several key advantages to using a credit card to pay for gas. Here are four reasons you may want to use your credit card at the pump.
Paying with plastic makes it easy to track your spending
Cash leaves no paper trail. Once you’ve spent it, you have no way of knowing where that money went unless you actively record the expenditure at the time of the purchase. When you pay with plastic, though, there’s always a record of the transaction. You can review your spending habits, or calculate how much you are spending in one budget category (transportation) to help you stay on top of your finances as best as possible. Just check out the credit card statement at the end of the month or billing period to see how much you’ve spent on fuel costs.
Earn rewards for every gallon
If you own a credit card that offers rewards or miles for every purchase you make, you can earn a lot of rewards by using your credit card to purchase the gas you’d buy anyways. In just one year, you may have enough rewards or miles to fund a full vacation! Just make sure to choose the card that offers the most bang for your buck.
Fraud and theft protection
When it comes to protecting your funds from fraud, credit cards are the number-one choice of payment methods. Unlike payments made in cash or with a debit card, a credit card purchase can always be disputed if found to be faulty. Many cards offer a zero-liability plan in cases of fraud as long as the credit card company is notified within a predetermined amount of time. Finally, paying with cash always carries the risk of theft, but a stolen or hacked credit card account can easily be closed.
Free up your money
When you choose to pay with a debit card at the pump, you’re choosing to put your money on hold. Gas stations present a unique risk to their owners, as the consumer can fill up and drive away without paying. To avoid this form of theft, gas stations will immediately authorize cards by placing a hold on the debit card account as soon as the consumer initiates the transaction, which is before they’ve even begun to pump fuel into their car. The hold is generally between $50 and $150. After the consumer has finished pumping gas, the card will be charged for the appropriate amount. However, the hold on the card may not clear for several days. If you need every dollar in your account immediately after paying for gas, you may want to use a credit card rather than a debit card at the pump.
Many drivers choose to pay for gas with cash to save on surcharges that some stations issue for payments made via credit card. However, if you use a rewards card and get cash back on every credit card purchase, the small surcharge can be more than offset by the rewards. In addition, some stations will waive the surcharge upon request.
It’s important to note that, as always, credit cards should only be used responsibly, even when paying at the pump. Only use a credit card if you know you will be able to pay the bill in full before it’s due. Otherwise, the interest charges you’ll accumulate mean you’ll be paying for far more than the actual price of gas.
Using a credit card to pay for fuel can have unique advantages over other payment methods. The next time you’re at the pump, consider pulling out your credit card instead of paying with a debit card or cash.
Your Turn: Do you use a credit card at the pump? Why or why not? Tell us about it in the comments.
Shopping in 2022 is worlds away from what it was at the turn of the century, or even just a few years ago. According to retail research firm, Digital Commerce 360, ecommerce sales surpassed $870 billion in 2021, a 50% jump over 2019. Online shopping is quick, easy and convenient.
Unfortunately, though, when a lot of shopping moved online, it also ushered in a wave of scams that are often successful. Some of these scams can be difficult for the untrained eye to spot, and many offer no way for the victim to reclaim their lost funds. Here’s what you need to know to recognize an online shopping scam and avoid being the next victim.
How these scams play out
There are several variations to the online shopping scam.
In one version, a shopper will scour the internet for a specific item in their desired price range. They’ll find the item retailing on a site at an attractive price and then proceed to make the purchase. They’ll share payment information, input their delivery address and complete the transaction. Unfortunately, though, the item never arrives on their doorstep. Alternatively, a cheap knockoff of the product will arrive instead of the item they’ve purchased. When the buyer tries to demand a refund, they are unable to reach the seller.
In another variation, a shopper finds an item online and tries to make a purchase. They’ll be asked to input sensitive information, such as a credit card or checking account number. At this point, the shopper will be unable to complete the transaction and will continuously run into errors on the site. However, the scammers now have their information and can proceed to empty the victim’s accounts, or worse.
In a third version of the online shopping scam, a seller clicks on an ad, or on a site that came up in a Google search for one of their favorite stores. They’ll proceed to make an order, not knowing they’ve actually clicked into a bogus look-a-like site run by scammers. The rest of the scam will follow one of the scenarios described above.
Watch for these warning signs that you may have stumbled upon a shopping scam:
Prices are too good to be true. If you find an online offer for a new iPhone retailing at just $450, you’re likely looking at a scam.
The offer urges you to act now. If an offer warns that the bargain prices it’s offering won’t last until sundown, it’s likely a scam.
The seller demands specific means of payment. If an e-tailer insists that you pay via prepaid gift card or wire transfer, opt out.
The website is full of typos and grammar errors. If the site is badly in need of editing, it may be run by scammers.
Follow these tips to keep yourself safe from online shopping scams:
Only shop on safe, secure sites. Check the URL for the lock icon and for the “s” after the “http”.
Check the URL for proper spelling of reputable sites. Make sure the URL of the site you’re on matches the authentic URL for that retailer and that you haven’t landed on a spoof site. You may want to save the genuine URLs on your computer for future use.
Avoid clicking on high-pressure pop-ups and banner ads. These are often scams.
Pay with a credit card when shopping online. A credit card offers the most protection for your purchases.
Never share personal information with an unverified contact. Don’t input your credit card number or account details unless you’re absolutely sure you’re dealing with a reputable website.
If you’re targeted
If you’ve fallen victim to an online shopping scam, there are steps you can take to mitigate the damage.
If you’ve paid via credit card, call the company to dispute the charge. At this point, you may want to consider closing the card and placing a credit alert and/or a credit freeze on your name. Next, alert the FTC about the scam. If the alleged retailer is on the BBB website, you can let them know, too. Finally, let your friends know about the scam so they know to be aware.
Your Turn: Have you been targeted by a shopping scam? Tell us about it in the comments.
Creating a budget and deciding to stick to it is easy; it’s actually carrying through on your plan that’s the hard part. For too many people, financial responsibility ends at having good intentions and real life gets in the way of all well-laid plans. A large part of the discrepancy between what they want to do and what they actually do is caused by their failure to spend mindfully. When every indulgence and impulse buy is just a swipe away, it can be super-challenging to rein in that spending instinct – but it is possible. Here’s how to learn the art of mindful spending.
Find alternative ways to de-stress
Too often, people claim they need “retail therapy” and use it as an excuse to practice mindless spending. But choosing to turn to shopping for alleviating stress, dealing with a challenging situation or just to escape real life for a bit makes it very difficult to make smart, responsible choices. In addition, the bills, or debt that will likely accumulate as a result will increase stress levels considerably. Instead, it’s best to find another way to lift a heavy mood. Find someone to talk to, take a long, hot bath, go for a jog while listening to your favorite pick-me-up playlist or take up a forgotten hobby again.
Consider disabling the one-click feature for online shopping
If you’re big into online shopping and often end up buying more than you’d planned, you may want to disable the one-click feature on sites like Amazon. You can also choose not to have your device “remember” your payment information so you have to input it whenever you shop. The more resistance or friction required to complete a purchase, the greater the chances of that purchase being a mindful choice and not a decision you’ll soon regret.
Leave your cards and cash at home
When you don’t plan on spending any money, don’t take any with you. For safety reasons, you may choose to carry a card with you, but it’s a good idea to keep it as out-of-reach as possible. If you make all your payments with your phone, keep it tucked away, too. Similarly, if you’re hitting the shops to pick up a specific item, bring just the amount you’ll need for the purchase and nothing more.
Put large purchases on hold
One of the best ways to avoid buyer’s remorse is to put all large purchases on hold. Set your own dollar amount for what you consider to be a large purchase and resolve to wait a while before completing any purchase in that amount or more. For example, you can decide to wait two weeks for every purchase of $50 or more. Delaying a large purchase will give you time to think it over and consider whether you really want to spend this money now. Of course, if you’ve been saving up for a large purchase for a while, you’ve already thought about the purchase and decided it’s worthwhile.
It’s hard to keep telling yourself no when temptation is constantly flashing across your screen. Opt out of social media accounts that get you to spend more than you should, and unsubscribe from email lists. Avoid browsing on brand sites that often trigger overspending and only visit when you need to make a purchase. You can do this in real life as well, being careful to avoid shops that provoke mindless spending. Similarly, when shopping for groceries, keep away from aisles and checkout counters that cause you to overspend and purchase more than you have on your list.
Mindless spending can be the undoing of the most carefully-crafted budget. Follow these tips to learn how to spend mindfully.
Your Turn: How do you practice mindful spending? Share your best tips and tricks in the comments.