Top Tips for Spending Responsibly

Financial Wellness
5
min read

Have you ever come across magazine features that compare how similar products stack up price-wise? You know, those that let you know which beauty product, outfit or tech gadget to pick if you want to save, spend or splurge?

Helpful, right? But looking beyond this, before making any purchase, it’s a good practice to ask ourselves whether our next move will allow us to save, spend or splurge. The goal is to strike that perfect balance of being able to afford the things we need while enjoying the things we love and saving for rainy days.

You don’t have to be a financial expert to make this happen. Let these tips guide you towards spending responsibly.

Having a balance personal to you will help you be more mindful of your spending habits and enable you to take control of your money, responsibly.

1. Monitor your money.

“Where is my money going?”. That’s the first thing you should ask yourself before you can start figuring out your spending strategy.

Calculate your expenses and subtract them from your income. From there, you can allocate an average amount for essential expenses like rent, bills, groceries and transport costs. Then set aside a fixed amount for the things you want and save the rest for rainy days.

It’s advisable to follow a 50-30-20 model, wherein you allocate 50% for essential expenses, 30% for your miscellaneous expenses and 20% for your savings.

Having a handy app like Zilch will help you track your purchases and allow you to split your payments into 4 over 6 weeks. Money monitoring made easy!

2. Spend rationally, rather than impulsively.

Mindfulness is a concept that is usually associated with meditation, but it is also applicable to spending. Buying things out of impulse, or just because they’re on sale, can be dangerous.

Unconsciously spending on “small things” like a cute top on discount, some snacks out of boredom or a brand new eyeshadow palette even if you still have three more is unwise because these purchases can amount to a lot of money when they accumulate.

Additionally, investing in something based on quality would be better in the long run. For instance, a £100 coat made of high-quality materials will keep you warmer and will last for 10 years, compared to a £35 coat made of cheaper materials which you’d probably need to replace after a year, making you spend more in the end.

Having a balance personal to you will help you be more mindful of your spending habits and enable you to take control of your money, responsibly. With Zilch, you can spend within your available balance and manage your cash flow efficiently.

3. Keep it real.

Social media influencers inspire their followers to imbibe their healthy lifestyle, chic fashion sense, marvellous cooking skills and more. Motivating others to become the best version of themselves is great.

But not everything you see on social media is realistic. A lot of influencer feeds are carefully curated to appeal to their target audience. While flaunting photos from a holiday in Ibiza, a meal in a newly-opened Michelin star restaurant or an outfit fresh off the runway of Paris Fashion Week all look and sound amazing, some of these posts are more likely sponsored.

There’s nothing wrong with treating yourself, as long as you can afford it and you’re doing it for your own enjoyment. Spending a fortune to maintain an image and impress others is expensive and unnecessary.

A picnic at the park with your closest friends, Sunday dinner with the whole family or going on a date at a hole-in-the-wall café with your partner are all meaningful experiences that can be achieved without spending a lot.

When it comes to your finances, being able to have what you love now and pay over time gives you the best of both worlds.

4. Look at the bigger picture.

There’s nothing like living in the present and making each moment count. But it’s equally important to plan for the future so that you can live your best life, no matter what happens.

When it comes to your finances, being able to have what you love now and pay over time gives you the best of both worlds. That’s what happens when you use Zilch. You’ll only have to pay 25% upfront, then pay the rest over 6 weeks, completely interest-free.

You’ll also get notified before your next payment is due, so that you’ll have time to prepare and never get caught off guard, It’s a win-win situation.

Striking that perfect balance isn’t that difficult after all. Having a pragmatic approach to life while practicing the virtue of moderation will help you keep your spending habits at bay. Knowing your priorities and saving for the future will put you in good financial shape.

So start your journey towards spending responsibly today! You can do it!

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