• Thursday, March 28, 2024
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BusinessDay

Make your wallet light to cut quick spending

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Not everyone has the ability to control spending pressure. This is why so many people have not done well in savings despite how many times they make resolutions and set goals. While this is a habit that must be cultivated to achieve greater financial success, note that you would be doing yourself a lot of good to end the temptation of spree spending so that you can financial goals can be more realistic.

Now you have been assisted by the new Central Bank of Nigeria Policy of going cashless. This will make you carry more cards than cash.

In a bid to reduce the increasing use of cash-in transactions, the Central Bank of Nigeria (CBN) in 2012 directed all commercial banks, savings and loans institutions, mortgage and microfinance banks in the country to ensure that, daily cumulative free cash withdrawals and lodgments by individual and corporate customers do not exceed a maximum ceiling of N500, 000 and N3 million respectively.

With the move of the CBN to transform the economy to a cashless one, all the stress of queuing in the bank, cost of transportation,  and the danger of carrying money about will possibly reduce and you can even buy and sale using electronic banking products.

Another way you can deal with your spending habit according  to Erin Huffstetler, personal finance expert with specialty in frugal living is to distinguish between needs and wants.

Do you need those new shoes or do you just want them? She said you should ask yourself this question each time you find yourself contemplating a purchase. If it’s a need (and it fits within your budget), go ahead and buy them. If it’s a want, spend some time weighing the impact of your purchase. What will these shoes do for you? Will they make you happy? Fill a hole in your wardrobe? Can you afford to buy them? Is there something else that you want more? Be honest about how your purchase will impact your life, and then decide if that “want” is really worth the asking price.

She said when shopping, you should shop with a list. Jot down everything that you need from the store, then only shop for the items that are on your list. Tempted by something extra? Then, make a note to add it to your next shopping list.

“Look over your budget, and decide how much money you can afford to blow each week. Then, withdraw this amount from your checking account at the beginning of the week, and spend guilt-free. Just remember: When the money’s gone, the spending stops – no exceptions”, she said.

By: HOPE MOSES-ASHIKE