So you work a 40 hour week and you want to spend some of that hard earned cash. It’s important to think about what you earn first, factor in your budget if you’ve got one, and decide if now’s the time to spend.
Isn’t there always something rolling around in your mind that you want? Or sometimes it’s an impulse buy. We see it and we justify it by telling ourselves how hard we work. And just like that we have spent money. It’s really that easy. Whip out a credit card and it’s yours.
Think about what you earn per hour and then look at that in regards to the price of what you are thinking about buying. For example: if you earn $20.00 per hour and you want to buy a pair of jeans that cost $60.00, it will cost you about 3 hours of work. Actually, more than 3 hours of work if you take out taxes and such for each hour worked. And if you put it on a credit card and don’t pay it off at the end of the month, those $60.00 jeans can cost you even more. Earnings/cost awareness is an important step in living within your means and a good way to put your purchases into perspective.
Here are a few ways to help you make the most of your wage in advance:
- Look for items to go on sale. You might even ask when those jeans you are interested in are on sale.
- Price compare items. Local items can be comparable to online items.
- Grocery stores have regular weekly featured sales.
- Stash away some cash, i.e. a change jar, to save up for these extra spending wants.
Take a Hike:
What are you wanting to do this weekend? Associate a cost to it. After paying bills, how much extra money do you have? Can you still afford to do what you want to this weekend?
Start looking at what you earn per hour and always be comparing that to what you are thinking about buying. A movie ticket or chicken versus steak at the grocery store. Going out for a beer or buying a six pack and staying home. When you think of your earnings and relate that to the direct cost of living it makes you more aware of what you are spending and what you can and can’t afford to buy. Credit cards are not the answer. #interestrates
I have a friend that always needs to be the fashion trend setter. Only problem is that now she has a couple of maxed out credit cards and trouble paying rent on time. She is on the road to recovery and most of this is because of awareness and taking a financial pause almost daily to see where things are at before heading out the door.
Our budgeting post is a great resource to help you out – see How to Budget Money; a Simple Guide to Spend How YOU Want!