Purchasing Decisions: Saving Money Better

Do you feel like you can't spend when you wish, as you wish, however much you wish? Do you have to weigh all the pros and cons of a purchasing decision? Watching the wallet can seem like such a drag sometimes.

Well, not entirely, especially if you've figured out the secret of cutting back without cramping your style. As with so many other perceived annoyances (waking up early, turning in early, eating healthy) in life - all it takes is making it part of your regular routine and getting the hang of it, then these previously pesky concerns such as 'budgeting' and 'saving', will become second nature.

Just how do you watch your wallet while still being able to lead as fulfilling a life as if you were spending indiscriminately? The thing to do is recognise that many of the things we buy are 'empty' purchases, that we don't really need them or derive any benefit from them. Many of the things we buy are purchased on a whim, or just because they seem convenient and within reach.

It's what personal finance expert and author of The Automatic Millionaire, David Bach calls 'The Latte Factor'; unconscious daily spending on small items that add up. The sooner we recognize our own Latte Factor, the better we're able to put our money to better uses.

Here are some money-saving tips you can try:

1. Never shop for food in empty stomach.

Ever noticed how you tend to grab at everything with a vengeance when hunger pangs are wreaking havoc on your stomach, and your sense of better judgment? You'll tend to buy less, and stick to what you need, instead of succumbing to stomach rumblings and filling up your cart with items you're only craving momentarily.

2. Make a list.

It's hard to rein in impulses when you're faced with a multitude of merchandise at stores. And whether we actually need them or not, the temptation is always there to throw good sense to the wind and indulge our wants. Before a shopping trip or a trip to the supermarket, make a list of the items that you need to buy. A shopping list works to steer us on the course of buying what we really need, and away from spur of the moment purchases.

3. Plan purchases according to what's on sale

Sale times are good time to stock up on items that need replacing or that you've been contemplating buying. However, go in with a game plan. Do a quick inventory check on your wardrobe before your retail spree. What are the essential items that need replacing? Make a list of these items so you limit your spending to what you need when you hit the shops.

4. Employ vigorous questioning

How many times have you bought something, only to end up never using it, or wearing it? Our emotions, and other people's opinions can often cloud our judgment so when faced with a tempting buy, run through questions like "Do we really need this?", "Will it end up a white elephant?", even "Am I buying this because so-and-so thinks I should?" in your mind. And answer them honestly. The only person that suffers from a dishonest assessment is you.

5. Enquire about credit card discounts and promotions.

Many retail shops offer discounts with various credit cards. Likewise, F&B spots also feature one-for-one promotions or similar deals from time to time. These can shave off significant amounts from your monthly bill.

6. D-I-Y

It's so easy to indulge in a fancy cuppa at swanky café around every corner. If you need your shot of coffee everyday, consider cheaper caffeine fixes from the coffee shop. Or try making yourself a cup from the office pantry.

Once you get the hang of these useful money-saving habits and start putting them in practice, you'll realise how they help you make better spending decisions and how watching your wallet hardly impacts on the quality of your life.

Yet despite their benefits, many may deem these measures too restrictive and bothersome to put into practice. In this case, having a clear understanding between our relationship with money and material acquisitions and our happiness can actually make it easier to adopt them and makes practicing them almost second nature.

How often do we catch ourselves thinking, I'd be happy if I had more, if I could buy that, if I could own that. The fact of the matter is, for too many of us, enough is never enough. So we pine for the next trendy thing, yearn for the new flashy item our friend has, convincing ourselves that our happiness is wrapped up in whether we can lay our hands on the next desirable material possession.

Recognizing this and re-examining the things that bring us longer lasting happiness can help us achieve a more fulfilling and meaningful life - not to mention a healthier bank balance.

Here's how to start:

Set goals

Having clear goals - whether they are to get healthy and fit, or to own your own home, give you a clear sense of purpose and can inform the decisions you make and actions you take. Small steps towards the achievement of these goals then, are able to bring on a sense of satisfaction and fulfillment.

Think 'quality'

For instance, it's likely that the company you keep, rather than the meal itself, is where you derive most joy when you dine out on a lavish dinner at a restaurant with your closest friend. So rather than shelling out a lot of cash for an expensive meals, plan a simple potluck party at someone's home the next time. You'll still be spending quality time with your friends, and the fact that you're not feasting on a costly meal with hardly affect the satisfaction you derive from the experience.

Once you've identified your goals and the things in your life that make you most happy, it's easy to see how happiness hardly involves the acquisition of more material goods, and how so many of the things we buy have often been 'empty' purchase.

With this new-found knowledge, it also becomes clear that pursuit for happiness can be carried out through many ways that don't require emptying put your wallet.