Smart spending isn’t just about cutting costs. It’s about making your money reflect your values. Every dollar you spend shapes your financial future. To shift your mindset, start by zooming out and looking at the big picture: define your money values, create a budget that makes space for investing, and be mindful of your credit score.
Know Your Money Values
Understanding your spending starts with knowing your money values—what you need to survive, to live, and to enjoy. “Survive” spending covers the essentials: rent, food, utilities, and minimum payments. “Live” means investing in yourself through education, health, and long-term goals. And “enjoy” is all about guilt-free spending on the things that bring you joy, like hobbies, vacations, or a new outfit. When your budget reflects these priorities, it becomes a roadmap to confidence and long-term wealth.
Create a Budget That Works for You
Budgeting begins with knowing your numbers and being intentional with your spending. Without a budget, it’s easy to overspend and fall into debt. Think of your budget as your personal GPS—it helps guide you toward the life you want.
Try the 50/30/20 Rule:
- Fixed costs that stay the same month after month, such as housing, utility bills or car payments should take up 50% of your income.
- Variable costs that can change from month to month, such as entertainment, groceries, dining out, clothing and travel, should take up 30% of your income.
- Savings should take up 20% of your income. This includes saving for an emergency fund as well as saving and investing for retirement and to build wealth.
Learn more:
Spend Money on Investing
Investing isn’t just for the wealthy, it’s for anyone ready to build wealth over time. Make sure saving and investing are a priority on your budget. Every time you’re tempted to spend on a non-essential, consider the opportunity cost. Could that money grow if invested instead?
Not sure where to begin? Start with this guide on saving and investing.
Mind Your Credit Score
Good credit equals lower interest rates, better credit cards, or even rental approvals. Build your creditworthiness early by using your credit card strategically, paying your balance in full each month and always paying bills on time.
Explore more:
- Top Tips for Cleaning Up Your Credit
- How to Pay Off Credit Card Debt
- Credit Card Finance Charge Calculator
10 Tips for Smart, Savvy Spending
Once your essentials are covered and you’ve set aside savings, it’s time to shop smart. We asked our community of financial experts to share their top strategies to help you avoid overspending and make your money go further.
1. Plan and Prioritize
Make a wishlist and focus on needs before wants. Take time to research and compare prices before you buy.
2. Avoid Impulse Buys
Stick to your plan. Avoid impulse purchases by taking time to think whether you really need an item before buying it. Ask yourself: Can I afford this right now and still cover my essentials? If not, wait.
3. Time Your Buying
Take advantage of sales, coupons, and discount codes. Compare prices across different stores to find the best deals. Understand seasonal sales and promotional periods, and stay informed to find out when is the best time to buy a specific product.
4. Join Loyalty Programs
Rewards programs can save you money, but only if you know how they work. Some give points, others offer instant discounts, and most come with strings attached. Check the fine print and learn the rules before you swipe so you’re not caught off guard later.
5. Stick with Quality Brands
Look for affordable quality. Buying something well-made can save you money in the long run. You won’t have to replace it as often, and in some cases, it might even keep some resale value. Not everything has to be top-dollar, but when quality counts, it’s usually worth the extra cost.
6. Check Return Policies
Avoid surprise costs by checking shipping and return fees and timeframes, online and in-store.
7. Cash or Card?
Many experts recommend shopping with cash, as it helps you stick to a budget and be more mindful about your spending. Some local businesses–like nail and hair salons or farmers markets–might even give you a discount to avoid card fees. If you are shopping with a credit card, choose one that gives you points, cash back or a promo deal that you will use.
8. Evaluate Non-Cash Assets
Consider liquidating non-cash assets like gift cards, dividend rewards, and unwanted possessions to free up cash for essential purchases.
9. Buy in Bulk
Whenever it makes sense, purchase non-perishable items in bulk to save money in the long run. Ensure you have enough storage space.
10. Shop with a Friend
Shopping with a friend is not only more fun, it can help you stay accountable and avoid unnecessary purchases. Friends can also provide a second opinion on potential buys.
Last but not least, review and adjust your spending regularly. Keep track of your cash flow: know what’s coming in and what’s going out. Regularly review your spending habits and adjust your budget as needed. Identify areas where you can cut back and save more. Awareness is the first step toward change.
By aligning your spending with your values, using a clear budget, and shopping mindfully, you can take control of your financial future.
Savvy Ladies is proud to partner with Essence and Catrice Cosmetics to help women like you take control of their financial futures. Thanks to their support, our Free Financial Helpline continues to offer unbiased, expert advice to women across the country, at no cost. Ask your financial question today.
