How to Spend Money Wisely (24 Tips)

Posted by Grace under Personal Finance on August 10, 2016

Here are the 24 tips on how to spend your money wisely, as I promised, I will let you know about these tips. In my previous post, I wrote an article about how to spend your hard earned money wisely and giving you the types of spenders, are you an impressionist or just a small time money spender.

This is just a review okay, but last time, I just wrote about a summary on how you will going to budget your money, just make  simple budget plan so that you know where your money are going.

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Here are the 24 tips, I hope you enjoy this one, the main reason why we should become wise spender is because we want to achieve our financial goal and become a rich person. Let us talk these things one by one, I am confident of these for I know how I am using my money wisely.

How to Spend Money Wisely (24 Tips)

Tip # 24 Budget Your Money– budgeting money is very important, when you budget your money, you know when and where to use the money, it’s either in transportation, utilities, food, etc.

Tip # 23 Avoid Being Shopaholic – I am not saying “shopping” is bad nor good, it is always depend on how you treat your money when shopping, do you hop until you drop or do you shop only when you have money and you are afraid of using credit cards.

Tip # 22 Spend Money When Emergency Only – especially in these days, there are more unexpected worst situation, (health problems, accidents etc). At least you have the money, unlike if you have nothing, the worst thing is that you can’t buy the medicine or things to use for “first aid” to survive.

Tip # 21 Be Responsible for Family Needs – you must prioritize your family, do not start spending with your friends, think first your wife, kids, your mother, father, what are you having this dinner or in one month.
(I’m talking about food or gift for them).

Tip # 20 Be Responsible for Yourself – pay yourself, treat yourself, buy the things for yourself, instead of treating your friends and spend more money, why not spend for your self,why not invest for your future and retire a millionaire, years from now you will stop working, how about your future?

Tip # 19 Don’t Be Afraid of Getting Rejected – if you are bachelor and buying the things you don’t need just to impress the girl you like and her firends, stop it. It’s not good for you for you are just an impressionist money spender not a wise spender.

Spend Money Wisely and Frugally

Tip # 18 Be a Certified Frugal – being frugal can make you rich, however, that’s not the only way to get rich, you have to study how to make your money grow, instead of saving your money in your pocket, closet or jewelry box, let your money grow on different investment products.See – how to invest money wisely?

Tip # 17 Compare Prices When Buying – comparing the things you are buying, from market to market, from store to store, this is not a weird thing, actually it helps you to save money.

Tip # 16 Wait for Mall “sales” – if you want to buy your favorite clothes, wait for mall “sales”, however be aware that not all sales are really on “SALES”. Get 30-70% discount is big savings on your part.

Tip # 15 Ask for Discounts and Rebates – if you can’t wait for mall sales, then ask for discounts or rebates, this way you can also save money.

Tip # 14 Go for Big Products and Packages – you can save a lot of money if you will going to compare 100 ml of shampoo is $20 while 10ml of shampoo sachet is just 2 cents. (just an example) ^_^ Compute your own.

Tip # 13 Know When to Spend – knowing when to spend your money is also a big chances for you to save, example, your money is supposedly use for your kids tuition fee next month, then if your kid’s education is very important to you, you will never spend money.

Tip # 12 Children’s Education First– if a child gets a education he will surely know how to earn a living when is getting older, prioritize education.

Tip # 11 Family’s Health First – when one of your family member get sicked, then you will spend money, why not svae money for your kids vitamins and buy nutritious foods for them, and also for you and your partner.

Tip # 10 Be Aware of Prices of Small Things – buying small things but lot of small things, if you sum them up, the total cost of these small things are the same as the cost of the expensive thing.

Tip # 9 Avoid Buying Useless Stuffs– avoid buying stuffs (latest gadgets) that depreciate value, a gadget amounting to $1,000 can sell only $500 after 5 months. Am i right? Why not use this expensive stuff when you can do the things on the inexpensive stuffs. Example; all cellphones can help you make a call or send a text messages ^_^ Even if it is cheap or expensive.

Tip # 8 Buy Assets not Liabilities – this is what I am telling you all the time, why not buy an assets, example, buy a thing that can produce money on your part, anything that you can buy that provides you an extra income – these are assets, while things that can add to your expenses – that are liabilities, hope you understand that.

Tip # 7 Use Money for Its Purpose – if it is for education, use for education, use where it is intended to use no matter what. Financial worst came when you don’t used the money for where it should be use.

Tip # 6 Control Your Money – don’t ever let the money control you, you are the one who earn a money, it is up to you how can you spend it, where and where to spend it.

Tip # 5 Collect Your Receipts– collecting product receipts can help you trace your expenses, the moment you receive your salary, these receipts can help you determined where to used the money according to your priorities.

Tip # 4 Don’t Wait for “PAY DAY!” – stop over spending money, do not spend all your money in one day, don’t wait for pay day, what I mean is that you will going to borrow money and you start to get in debt. Our goal is to become financially free, right? Not to live your life with debt.

Tip # 3 Be Aware of Loans – loans are debts, car loan, house loan, if you want a house and a car, plan it, write a goal and take action, why not save and invest, the answer is not to get a loan and buy a car or a house. Imagine the interest rates in the loan company, but if you invest money – at least in 2-5 years you can buy your house or car without getting any loan or debt.

Tip # 2 Simple Joy = Simple Reward – invest in your future, try to live simple, insetad of living luxuriously while you are not rich, try to invest money, be frugal and the money that you save as being frugal, put in on different investment products – so the money will work for you, they will grow overtime.

Tip # 1 Try Stock Market and Mutual Funds – try to invest money on stock market and mutual funds, maybe you are asking, these terms are for “millionaires only?”, no even an ordinary people can invest in the stock market and mutual funds. That way, if you will invest regularly every month, you become financially free after 25 or 20 years, do you know you can become a millionaire in the next 10 years while investing a small amount of money in the stock market?

Related: How to Save Money: The Ultimate Guide

Read the guide on how to invest money and learn on how I am achieving my financial goal slowly but surely. If you want to get rich fast, you’re not on the right website, but if you want to retire a millionaire, then read this guide. Thank you. I hope you enjoy this 24 tips on how to spend money wisely. God bless you happiness and prosperity.

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