Conduct a Cost Audit to Make Smarter Purchasing Decisions

It’s easy to mindlessly waste money on unnecessary nonsense, but sometimes we waste money on things we don’t even need . To avoid this, conduct a spending audit to make sure you are spending on what really matters.

It helps prioritize your discretionary spending on what you enjoy the most. In other words: spend money on what you like, not just what you like . The problem is that most of us don’t think about our spending habits, so we don’t even realize that we are spending money on things that we don’t really care about.

This is why it is helpful to look at your budget and track your expenses. But I loved the advice from personal finance writer Melanie Lockert on how to take it one step further:

“After tracking your spending for a full month, look at all of your purchases. Next to each purchase, mark it with an asterisk if the purchase was spent on something related to your values ​​and made you feel good. If a purchase made you feel bad or guilty, highlight it in red. For this exercise, if you are tracking your spending digitally, print a physical copy of what you spent this month. ”

This is a simple exercise that encourages you to spend a little more mindfully. It will also help you cut costs that don’t make you happy. This way, you can prioritize your discretionary spending accordingly. For more details please follow the link below.

Spending on Your Values: How to Avoid the Guilt Trap | VOSA via Rockstar Finance

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