How many times have you wondered where that $50 in your wallet went, or why
your wallet feels incredibly lighter, or why the numbers in your bank account
are getting lower and lower.
Start thinking back to the last purchases that you've made, and you would
probably say that you didn't really spend much at all. Or that you spent
"smartly".
Sometimes, these "smart" ways of spending are actually what's causing you to
lose money.
According to the website mintlife, we sometimes tell ourselves "money lies",
or what it says are not too accurate statements to justify unnecessary purchases
that lead to unneeded spending.
Find out what these top money lies are, according to the financial website,
and how to fight back.
#1 "If I don't buy it now, I might miss out"
We usually say this when we see ads or banners screaming out "Last three days
of sale" or "Sale! This weekend only!"
Who wouldn't be tempted, especially when they're coupled with statements like
"Discount of up to 70 per cent off!"
A consumer adviser, Andrea Woroch, told the site that deals like this 'create
a sense of urgency' among consumers who feel that if they don't grab the
opportunity, they 'could miss out on the value later down the road'. That's why
they end up buying items even when they don't particularly need them.
FIGHT BACK: Remind yourself that you don't need these items, and that sales
like these happen all the time
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#2 "I need it"
Scenario: You see a cute top in the mall, or a high-end camera with better
specs than the one you're using. In your head, you're thinking - I need that! I
need that to keep up my appearance at work, or I need that to take better photos
of my growing toddler. But do you really?
Dr. James Roberts, author of "Shiny Objects: Why We Spend Money We Don't Have
in Search of Happiness We Can't Buy, tells mintlife: "Pretty much everything we
buy is a discretionary purchase, not something we need."
FIGHT BACK: Dr Roberts' advice: Remember that the only things we truly need
are food, shelter, and clothing. Remember though that this doesn't give you
licence to splurge on lobster and truffles, an exorbitantly expensive property,
or that Gucci frock that you swear had your name written on it when you saw it
through the window.
Beyond the basics, spend only what you can truly afford. Make sure that you
have the means to pay before splurging beyond what you really need. |
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#3 "I can always return it"
When shopping at a place with return policies, it's easy to think that if you
change your mind after you purchase an item, you can always return it.
However, remember that not all stores have return policies, and those that do
can be quite strict about the conditions of return, or will only give you
in-store credit, or an exchange for items of the same price or less. Bottomline:
You might not get your money back.
FIGHT BACK: Apart from buying only the items you need, if you really must
return something, make sure you remember when you'll have to return it by,
advises the website.
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#4 "I should buy it since it's for charity"
A growing number of companies are saying that a portion of the proceeds from
certain items will go to charity. And for most, this could easily be the tipping
point to decide whether to buy an item or not.
FIGHT BACK: If you really don't need an item and you feel it's not worth it
despite the charity tag, remember that you can always donate to the charity on
your own whether you buy the item or not. |
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