No one wants to spend more than they have to. This applies to anything, but this has greater impact on more expensive items. We don’t want to end up giving more than we have to, especially on those items we may end up spending years paying back. We are already dealing with plenty of debt issues. The more we can do to lower our expenses, the better.
Forming financial goals
What does it mean to spend wisely? Ideally, we do not want to be paying out more than we get in. This leads us into serious financial trouble. A good way to plan this is to create a budget. Taking into account our monthly income and expenses, we can start attempting to achieve the goal of retaining more than we earn. This allows us to save.
Saving and planning all help to form financial goals. These fall into two categories. As Consumer Action notes:
“Financial goals often fall into short-term and long-term categories. Short-term goals may be ones you want to achieve in one or two years, such as finishing your education or getting married. Long-term goals may take more time to reach — five years or more to be in the position to buy a home, and much longer if you’re talking about a secure retirement or paying for your children’s college education.”
Our money must be managed properly, so we can lead our lives better.
How proper spending can lead to better saving
A good purchasing decision is choosing good pre owned cars over brand new ones. As Consumer Reports noted, buying used cars the right way “saves” a great deal of money.
While new cars tend to remain at a fixed price, used cars usually offer wiggle room in a number of areas. According to their research, Consumer Reports notes a high success rate when it came to price haggling.
Mark Rechtin, Chief Cars Editor for Consumer Reports noted: “Most of our survey respondents who asked for a lower price on the used cars they bought were successful 80 percent of the time. The median savings was about $900 [about R13,200].”
They also note that we should buy the most recent model year we can afford, which will have the best safety and technology features. We don’t want to be caught out, so they also suggest we have cars inspected by a mechanic.
Also, we should always try for vehicles with less than 50,000 miles (or 80,500 kilometres) on them. All of this means less chance of the car being a lemon, breaking down and costing us more in the long run. This is what saves us a great deal of money and means we made the best purchasing choice.